Baku, Azerbaijan, May 30
By Maksim Tsurkov - Trend:
The Southern Gas Corridor CJSC plans to attract an additional $1.6 billion by 2020 for the SGC project (excluding expenses for dealing with existing debts), Director General of Southern Gas Corridor CJSC Afghan Isayev said at the 25th Anniversary Caspian International Oil & Gas Conference in Baku on May 30.
"In addition to the funds raised so far, $1.6 billion needed to finance the Azerbaijani share in the SGC project by 2020," Isayev said, adding that $1.4 billion will be needed in 2019, and another $200 million - in 2020.
"As for the current year, $500 million have already been allocated during January-April. Until the end of the year, it is planned to direct another $ 0.8 billion for financing, "Isayev said.
He said that the negotiations are currently underway with a number of financial institutions to lend the project.
"Following the negotiations with Multilateral Investment Guarantee Agency (MIGA) on allocation of $750 million for TANAP for 15 years, a club of four banks was formed. The Budgetary Committee of the Federal German Parliament (Bundestag) approved guarantees for the allocation of a loan worth $1.5 billion in the UFK format for TANAP and Shah Deniz-2 for 15 years by a syndicate of banks, including the German development bank KfW and Citibank," he said.
The official opening ceremony of the Southern Gas Corridor was held in Sangachal terminal, Baku May 29.
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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