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GECF: Southern Gas Corridor allows more integration of gas infrastructure (Exclusive)

Oil&Gas Materials 27 December 2018 07:00 (UTC +04:00)

Baku, Azerbaijan, Dec.27

By Leman Zeynalova – Trend:

Southern Gas Corridor (SGC), which envisages transportation of Azerbaijani gas to Europe, allows more integration of gas infrastructure, Gas Exporting Countries Forum (GECF) told Trend.

Based on projections from GECF GGO 2018, Europe will increase its net imports of natural gas from 278 billion cubic meters (bcm) in 2017 to 350 bcm in 2020 and 440 bcm in 2040, said the organization.

"With this import prospects, the Southern Gas Corridor (SGC) is an important option, in addition to other pipeline sources, that contributes in improving European energy security," said GECF.

SGC allows diversification of gas supply sources and routes targeting the European market, and supports the penetration of natural gas in Eastern Europe region, which presents a non-negligible potential of gas demand increase, according to the organization.

"SGC allows more integration of gas infrastructure since it offers the possibility to connect with other intra-European pipelines, and this enables to increase the availability of natural gas and its accessibility to European markets," said GECF.

Southern Gas Corridor envisages transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

On May 29, Baku hosted the launch ceremony of the first phase of the Southern Gas Corridor project.

The gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the Southern Gas Corridor - from the Sangachal terminal to the expanded South Caucasus Pipeline.

The Southern Gas Corridor project aims to increase and diversify European energy supply by bringing gas resources from the Caspian Sea to markets in Europe. The Southern Gas Corridor comprises the following four projects: (i) operation of Shah Deniz natural gas-condensate field ("SD1" project) and its full-field development ("SD2'" project), (ii) the operation of the South Caucasus Pipeline ("SCP" project) and its expansion ("SCPX" project), (iii) the construction of the Trans-Anatolian Natural Gas Pipeline ("TANAP" project) and (iv) the construction of the Trans Adriatic Pipeline ("TAP" project) (SD2, SCPX, TANAP and TAP collectively, the "Projects").

The Projects have an estimated investment cost of approximately $40 billion.

Upon completion, the SD2 project will add a further 16 bcm of natural gas per annum to 10.9 bcma (maximum production capacity) already produced under SD1 project.

Total length of the newly constructed SCPX, TANAP and TAP pipelines will be around 3,206 kilometers.

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Follow the author on Twitter: @Lyaman_Zeyn

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