Baku, Azerbaijan, Aug. 4
By Elmira Tariverdiyeva – Trend:
Europe may accelerate financing of the projects of the Southern Gas Corridor in connection with the new US sanctions imposed on Russia.
The new US law on sanctions against Russia will also affect the Russian pipeline project known as the Nord Stream 2.
In the when the second branch of the Nord Stream pipeline would be laid, Russia, as an outcome of such construction, could receive more than 50 percent of the European gas market, which would lead to even greater dependence of Europe on the services of the sole supplier on the market.
The Southern Gas Corridor project which should provide Europe with Caspian gas is not mentioned in the document on tightening sanctions, which has been submitted to the United States President Donald Trump.
On one hand, there is a possibility that US is interested in entering the EU market with its own gas. That gas, of course, would be in liquefied form, as the sea route is the only acceptable one from the US to Europe. Nevertheless, Caspian gas, which should be supplied through the Southern Gas Corridor via the territory of Turkey, would be more lucrative for the Europe.
Europe may accelerate financing of the projects associated with the Southern Gas Corridor. The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has set the approval date for the loan, worth $500 million and intended for the TANAP project implementation, today. The loan will be approved on October 18, 2017.
The funds will be allocated; moreover, these funds will be provided to the Southern Gas Corridor CJSC.
European Investment Bank (EIB) is also considering project’s financing possibilities.
“The project is being still evaluated,” EIB representative told Trend Aug. 3.
"The EIB does not comment on the details until the evaluation of the project is completed,” EIB representative added. “The decision on the financing can not be made until the ‘due diligence’ procedures are completed. Bank will carefully consider all relevant issues within these procedures.”
Obviously, sanctions against Russia and Iran may impel the West to accelerate the implementation of the strategically important South Gas Corridor project, which would help to ensure energy independence and security of the EU member-states.
The implementation of the Southern Gas Corridor project would change not only the world's energy, but the political map as well. It would also bring major dividends to Azerbaijan, since the country would become the first supplier of its own gas via this important route.
Elmira Tariverdiyeva is the head of Trend Agency’s Russian news service, follow her on Twitter:@EmmaTariver