BAKU, Azerbaijan, Feb. 11
By Nargiz Sadikhova - Trend:
The completed Southern Gas Corridor could also provide a means to export gas from Turkmenistan westward, former US ambassador to Azerbaijan Robert Cekuta wrote in his article, Trend reports.
“Called “a tremendous, audacious, and complicated project,” the Southern Gas Corridor strengthens the energy security of European countries and thus their sovereignty and the well-being of their citizens,” he said.
He noted that even as Europe and other countries look to slash greenhouse gas emissions to fight the climate crisis, the need for gas as a cleaner fuel will continue. Natural gas will be a necessary part of the transition to a lower-carbon future, he said.
In his words, the Southern Gas Corridor was launched and realized through a strong partnership between governments and companies.
“Companies brought top-notch technical expertise to meet the project’s tough, novel engineering challenges. There were clear goals and a clear commitment to those goals. There were strong partnerships among the energy companies and suppliers involved in the project as well as good communications and strong partnerships between those firms and the governments. Among the results of this strong cooperation and engagement between governments and companies, drive for technical excellence, and sound business practices are that rather than the $40-$45 billion, was expected to cost, even given the project’s complexity, the total cost of the project is reportedly under $33 billion,” Cekuta said.
Having noted that completion of the Southern Gas Corridor can enable further steps to boost European, and thus global, energy security he said that the system can be expanded further.
“The next phase could reach additional markets in Albania and the western Balkans. It can facilitate Turkey’s plans for Energy Exchange Istanbul, a futures market it wants to be established in 2021. There is thought the TANAP (Trans Anatolian Pipeline) leg of the SGC could help carry gas from the Eastern Mediterranean and so further Turkey’s efforts to make itself an energy hub. Experts credit the SGC’s completion with helping create conditions for the January 2021 agreement between Azerbaijan and Turkmenistan that ended a years-long bilateral dispute to allow for oil and gas production in the Caspian Sea’s Dostluq field,” he said.
The completed Southern Gas Corridor could also provide a means to export gas from Turkmenistan westward, following the construction of a gas pipeline across the Caspian, Cekuta said.
“Currently Turkmenistan exports pipeline gas to only one customer, China, and sold to the Chinese gas worth only $6 billion in 2020. Possessing one of the world’s largest natural gas deposits, Turkmenistan could sell significantly larger amounts to new markets. Suppliers, like customers, benefit from a diversity of partners. The bottom line: the start of commercial operations in the final leg of the project on December 31, 2020, may mark the completion of the Southern Gas Corridor project, but it also puts in place an important model of what governments can accomplish in partnership with the private sector. It establishes as well a basis for further engagement with the Caspian region to boost energy security and address changing international energy needs,” he said.