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Released March 19, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The major Southern Gas Corridor (SGC) project to connect Europe to Azerbaijan gas supplies will receive investment of about $900 million across a variety of projects in 2019, according to Azerbaijan's state oil company SOCAR.
Almost $1 billion was invested last year, SOCAR said. The $40 billion Southern Gas Corridor (SGC) project comprises four projects: the Shah Deniz 2 oil and gas field, expansion of the South Caucasus Pipeline (Baku-Tbilisi-Erzurum), the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP). Combined, the Southern Gas Corridor is a 3,500-kilometre-long network of gas pipelines that the European Union believes could eventually supply 20% of its gas needs, reducing the region's reliance on Russian gas. It will start operating in 2020 with the goal of transporting 10 billion cubic meters per year (bcm/y) of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe. However, the European Union (EU) wants to double that capacity to 20-25 bcm/y within a decade as other countries and oil companies connect additional oil and gas fields to the pipeline network.
At the recent fifth meeting of the SGC Advisory Council, a record number of countries attended. The SGC Advisory Council grew to 17, according to Parviz Shahbazov, Azerbaijan's minister of energy. "For the first time, Serbia, Hungary and San Marino took part in the meeting. This shows that interest in this project is growing year by year," he told the Azeri press.
EU Commissioner for Budget and Human Resources Günther Oettinger told those gathered: "The Southern Gas Corridor is a historical project. I strongly believe that the Advisory Council has been crucial in pushing this project forward. It has brought together all the actors to ensure that the challenges are addressed together. We will soon be able to say 3500 kilometres of pipelines constructed in record time across various countries below initial cost estimates. There are not many infrastructure projects that can make the same claim. It's a historical project."
He added: "The project will open a new supply route and helps the EU to diversify its gas sources in line with the EU Energy Security and Energy Union Strategies".
At the start of this year, Industrial Info reported that a key part of the SGC project--the Trans Adriatic Pipeline (TAP)--had secured final financing of 3.9 billion euro ($4.5 billion). The financing for TAP was the largest project finance agreed for a European infrastructure project in 2018. The 878-kilometre-long TAP pipeline will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. It will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in southern Italy. For additional information, see January 22, 2019, article - Trans Adriatic Pipeline Gets $4.5 Billion EU Boost.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Almost $1 billion was invested last year, SOCAR said. The $40 billion Southern Gas Corridor (SGC) project comprises four projects: the Shah Deniz 2 oil and gas field, expansion of the South Caucasus Pipeline (Baku-Tbilisi-Erzurum), the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP). Combined, the Southern Gas Corridor is a 3,500-kilometre-long network of gas pipelines that the European Union believes could eventually supply 20% of its gas needs, reducing the region's reliance on Russian gas. It will start operating in 2020 with the goal of transporting 10 billion cubic meters per year (bcm/y) of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe. However, the European Union (EU) wants to double that capacity to 20-25 bcm/y within a decade as other countries and oil companies connect additional oil and gas fields to the pipeline network.
At the recent fifth meeting of the SGC Advisory Council, a record number of countries attended. The SGC Advisory Council grew to 17, according to Parviz Shahbazov, Azerbaijan's minister of energy. "For the first time, Serbia, Hungary and San Marino took part in the meeting. This shows that interest in this project is growing year by year," he told the Azeri press.
EU Commissioner for Budget and Human Resources Günther Oettinger told those gathered: "The Southern Gas Corridor is a historical project. I strongly believe that the Advisory Council has been crucial in pushing this project forward. It has brought together all the actors to ensure that the challenges are addressed together. We will soon be able to say 3500 kilometres of pipelines constructed in record time across various countries below initial cost estimates. There are not many infrastructure projects that can make the same claim. It's a historical project."
He added: "The project will open a new supply route and helps the EU to diversify its gas sources in line with the EU Energy Security and Energy Union Strategies".
At the start of this year, Industrial Info reported that a key part of the SGC project--the Trans Adriatic Pipeline (TAP)--had secured final financing of 3.9 billion euro ($4.5 billion). The financing for TAP was the largest project finance agreed for a European infrastructure project in 2018. The 878-kilometre-long TAP pipeline will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. It will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in southern Italy. For additional information, see January 22, 2019, article - Trans Adriatic Pipeline Gets $4.5 Billion EU Boost.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
