Baku, Azerbaijan, Feb. 28
By Leman Zeynalova – Trend:
Loans directly attracted from the International Bank for Reconstruction and Development (IBRD) and Asian Infrastructure Investment Bank (AIIB) have been fully utilized by Azerbaijan’s Southern Gas Corridor CJSC, Trend learned from the company.
IBRD has allocated $400 million worth loan to the Southern Gas Corridor CJSC. The loan was issued for a period of 30 years with preferential insurance of five years. AIIB allocated $600 million loan for the implementation of the Trans Anatolian Natural Gas Pipeline (TANAP) project on December 21, 2016.
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).
TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction the gas will be delivered to Europe in early 2020.
The length of TANAP is 1,850 kilometers with an initial capacity of 16 billion cubic meters of gas. Around six billion cubic meters of this gas is meant to be delivered to Turkey, with the remaining volume to be supplied to Europe.
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