Southern Gas Corridor CJSC withdraws 70% of EBRD loan
Baku, Azerbaijan, Feb.27
By Leman Zeynalova - Trend:
As of 27 February 2018, Azerbaijan’s Southern Gas Corridor CJSC withdrew $351.2 million from the loan made available by the European Bank for Reconstruction and Development (EBRD) in the amount of $500 million for the Trans Anatolian Natural Gas Pipeline (TANAP), Trend learned from the company.
It accounts for around 70 percent of the loan.
The EBRD Board of Directors approved a $500 million loan for TANAP on Oct. 18, 2017. The loan is issued for a period of 18 years.
The loan agreement was inked Oct. 20, 2017. The document was signed by Director General of Southern Gas Corridor CJSC Afgan Isayev and EBRD Director for Energy and Natural Resources in Russia, Caucasus and Central Asia Aida Sitdikova.
A guarantee agreement on the loan was signed by Azerbaijani Minister of Finance Samir Sharifov and Sitdikova.
The Southern Gas Corridor, worth over $40 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas sources. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.
At an initial stage, the gas to be produced in the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Shah Deniz Stage 2, 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 (TANAP) and Trans Adriatic Pipeline (TAP).
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