Southern Gas Corridor to benefit all participating countries - Russian expert

Oil&Gas Materials 19 March 2018 16:35 (UTC +04:00)

Baku, Azerbaijan, March 19

By Ilkin Shafiyev - Trend:

The Southern Gas Corridor (SGC) project will benefit both Azerbaijan and other participating countries, Alexander Pasechnik, head of the Analytical Department at Russia’s National Energy Security Fund, told Trend.

“All involved parties will benefit from the implementation of the SGC project,” he said. “The project will give impetus to infrastructure development, which will have a multiplier effect on the economies of the participating countries.”

The expert stressed that the project will lead to increased competition, primarily in the Turkish market.

“The initial stage of the SGC project involves supplying up to 10 million cubic meters of gas per year to the Turkish market, the Azerbaijani gas will primarily go there,” he said. “As is known, Russia’s Gazprom company is also expanding potential to increase its presence in the Turkish market. However, given the growing demand for gas in Turkey, I believe that this won’t be a problem for suppliers, although new supplies will push the parties to price compromises.”

The Southern Gas Corridor is one of the priority projects for the EU and provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

At an 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 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).