Investments in Southern Gas Corridor to Reach $48b

Investments in Southern  Gas Corridor to Reach $48bInvestments in Southern  Gas Corridor to Reach $48b

The investments in projects designed to supply Azerbaijani gas to Europe will reach $45-$48 billion, Rovnag Abdullayev, president of the Azerbaijani state energy company SOCAR made the remark at event dedicated to the oil and gas industry workers on Monday, Azernews reported.

The investments will cover the development of the second stage of the Azerbaijani Shah Deniz offshore gas condensate field, expansion of the South Caucasus gas pipeline, construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipeline. Azerbaijan with total gas reserves in the volume of about three trillion cubic meters will be able to begin supplying fuel to Europe via the planned Trans-Adriatic Pipeline, a part of the Southern Gas Corridor.

The 3,500-kilometer South Gas Corridor that would finally end Europe’s dependence on a single pipeline started with the go-ahead to the South Caucasus Pipeline Expansion, which will connect the Sangachal terminal with eastern Turkey through Georgia. It will link up with the SOCAR-led TANAP to be connected with a third pipeline TAP on the Turkish-Greek border.

TANAP construction is due to be completed in 2018 and TAP in 2020 with first gas deliveries to Europe planned in the same year. The cost of the work on all four elements of the Southern Gas Corridor was estimated at almost $50 billion, according to the preliminary data.

Abdullayev further said SOCAR will continue its activity in Turkey, namely the projects on construction of a refinery, container port, and construction of a new power plant will begin in late 2014- early 2015.

The total cost of the project on the construction of SOCAR’s refinery in Turkey exceeds $5 billion. Azerbaijan’s state oil fund allocated $475 million to finance this project. Around $3.29 billion will be drawn from 23 financial institutions. A container port is planned to be completed by late 2014 - early 2015. The project will cost $ 400 million. SOCAR investments in Turkey will reach $ 20 billion in total. So far, Azerbaijan has invested $5billion in the Turkish economy.