The Southern Gas Corridor project will let Azerbaijan gain at different oil prices, both from sale and transportation of hydrocarbons, from $30 up to $50 billion, according to preliminary calculations, Shahmar Movsumov, the executive director of the State Oil Fund of Azerbaijan (SOFAZ), said in an interview with Caspian Energy international journal.
In its turn, this project will promote development of economy and infrastructure both domestically and across the region, he said.
“The Southern Gas Corridor is broad-scale infrastructure and energy project of Europe,” Movsumov said. “Giant gas resources of Azerbaijan, especially, Shah Deniz field, are currently the only source of resources for SGC. It is one of the biggest gas fields in the world.”
“SGC implies implementation of Shah Deniz II project; extension of South Caucasus gas pipeline (Baku-Tbilisi-Erzurum), construction of the Trans Anatolian gas pipeline (TANAP) from the eastern to the western border of Turkey; construction of the Trans Adriatic Gas Pipeline (TAP), which will link Greece, Albania and extend across the Adriatic Sea to south of Italy and further to the Western Europe,” he added.
“The expected length of the corridor is 3,500 kilometers,” Movsumov noted. “Implementation of the SGC project is also aimed at developing Azerbaijan’s economy in the long term. SGC will create additional economic and financial opportunities for Azerbaijan and ensure economic profits and inflow of foreign currency for decades.”
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian Sea region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz development, 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 and Trans-Adriatic Pipeline.