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SOCAR discloses volume of investments in Southern Gas Corridor

Oil&Gas Materials 3 April 2020 12:25 (UTC +04:00)
SOCAR discloses volume of investments in Southern Gas Corridor

BAKU, Azerbaijan, April 3

By Leman Zeynalova - Trend:

Azerbaijan’s Southern Gas Corridor closed joint-stock company (CJSC) has invested to date $9.9 billion in the Southern Gas Corridor (SGC) projects at the expense of its revenues from the projects, the authorized capital and borrowed funds, Ibrahim Ahmadov, deputy head of the public relations and events department at Azerbaijan’s state oil company SOCAR, told Trend.

Ahmadov said that from January 1 to April 1 2020, the company has spent around $29.4 million to finance its share in SGC projects.

He went on to add that no changes are expected in investment plans for the projects due to coronavirus.

As for the projects’ status, Ahmadov said that progress in the Stage 2 of development of Shah Deniz, one of the largest gas and condensate fields in the world, is 94.3 percent.

“TAP project is 93.5 percent complete as of late February. The progress in the South Caucasus Pipeline Expansion and the Trans Anatolian Natural Gas Pipeline (TANAP) is almost 100 percent,” he added.

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 more than 3,200 kilometres.

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