Azerbaijan invests $10bn in Southern Gas Corridor project

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AzerNewsAz – Southern Gas Corridor CJSC has invested approximately $10 billion in the Southern Gas Corridor project that takes Azerbaijan’s energy resources to European markets, Trend reported with reference to Deputy Head of SOCAR’s PR and Event Management Department Ibrahim Ahmadov.

The company used revenues from projects, charter capital, and borrowed funds for the investment.

Ahmadov said that the company spent approximately $102 million to finance its share in the Southern Gas Corridor during the first nine months of 2020.

The Southern Gas Corridor, which was launched in May 2018, is an initiative of the European Commission for a natural gas supply route from Caspian and Middle Eastern regions to Europe. The estimated cost of the project is $38 billion. The goal of the Southern Gas Corridor is diversification of energy supply routes and sources and contribute to the strengthening of energy security in Europe. The route from Azerbaijan to Europe consists of the South Caucasus Pipeline, the Trans-Anatolian Pipeline and the Trans-Adriatic Pipeline.

The main supply source would be the Shah Deniz gas field, located in the Caspian Sea.

The main components of the project are Stage 2 of the Shah Deniz project, the expansion of the South Caucasus pipeline Baku-Georgia-border with Turkey, the construction of the Trans-Anatolian gas pipeline (TANAP) from the eastern to western borders of Turkey, and the Trans-Adriatic gas pipeline (TAP), connecting Greece, Albania and the south of Italy.