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Southern Gas Corridor to contribute to stability of energy supply in Europe

Gündem 30 Nisan 2018
61


The Southern Gas Corridor (SGC) will contribute to the stability of energy supply in Europe and ensure additional volumes of gas from new sources, Gulmira Rzayeva, expert, senior research fellow at the Center for Strategic Studies under the president of the Republic of Azerbaijan, said.

Rzayeva made the remarks at the 3rd SOCAR International Caspian and Central Asia Downstream Forum on Trading, Logistics, Refining and Petrochemicals in Baku April 24.

“Southern Gas Corridor will be a turning point in gas supplies for at least three European countries,” Rzayeva said mentioning Italy, in which 38 percent of imports account for Russia’s Gazprom company, Greece, in which 40 percent of imports account for Russian gas, and Bulgaria, in which 36 percent of the market depends on gas imports.

“The project has a guaranteed market for 25 years in Europe and 15 years in Turkey,” she said. “Despite market shocks, Southern Gas Corridor is in a favorable position due to the binding agreements.”

The expert also stressed that despite financial crisis in the energy market, the financing of the project is not a problem for partners and Azerbaijan.

“Turkey and Europe represent a promising market for bigger imports of pipeline gas after 2020, and this gas will be obtained from unconventional sources,” Rzayeva said.

She added that gas production will reach 50 billion cubic meters per year in Azerbaijan by 2028 thanks to the development of new fields.

The Southern Gas Corridor, worth over $40 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas sources. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At an initial stage, the gas to be produced in the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Shah Deniz Stage 2, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).

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