Azerbaijan's investment in Southern Gas Corridor reaches $9.7 billion

Baku, May 6 - Neftegaz.RU. The $40 billion worth Southern Gas Corridor (SGC), project which is an initiative of the European Commission, envisages the transportation of 10 billion cu m of Azerbaijani gas to Turkey and Europe.

Ibrahim Ahmadov, Head of Public Relations at SOCAR, told Report that Southern Gas Corridor has fulfilled 96 % of its financial obligations under the Southern Gas Corridor, having invested $9.7 billion of the total $10.1 billion in the project.

“As a result of optimization and reduction of expenses, the initial investment cost of the project in the amount of $45 billion has decreased to $40 billion. No additional negotiations with international financial institutions, including German banks, are held to finance Azerbaijan’s share, since there are enough funds previously attracted by the Southern Gas Corridor,” he said.

Touching upon separate segments of SGC, Ahmadov stated that all projects are being implemented due to schedule and some are ahead of it.

“The 1st gas production stage under the Shah Deniz 2 project has been finished, 92.6 % of the equipment and installation work has been completed. Work on the expansion of the South Caucasus gas pipeline is at its final stage. The overall progress of the TANAP project is 99.6 %, and of TAP - 86.5 %,” he noted.

The Southern Gas Corridor consists of 4 segments: Shah Deniz 2, expansion of South Caucasus Pipeline (Baku-Tbilisi-Erzurum), the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).

The launching ceremony of the 1st stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while the opening ceremony of TANAP was held on June 12, 2018, in the Turkish city of Eskisehir. TAP and TANAP have already been connected on the Turkish-Greek border.

SGC is one of the most ambitious projects in the world of oil and gas industry, as well as a complex target that involves many different stakeholders, including seven governments and 11 companies.

1st gas from the Azerbaijani Shah Deniz field has already gone through the 1st segment of the SGC - from the Sangachal terminal to the expanded South Caucasus Pipeline..