BAKU, Azerbaijan, June 12
By Leman Zeynalova - Trend:
The expansion of the Southern Gas Corridor (SGC) could further improve the diversification of gas supplies, but it will depend on market demand, European Commissioner for Energy Kadri Simson told Trend.
“Market tests by the Trans-Adriatic Pipeline (TAP) consortium and exploration work in the Caspian Sea are already underway. The situation of course needs to be assessed in the context of EU’s commitment to become climate-neutral by 2050. So while natural gas has a role to play during the transition period, our gas sector needs to move towards decarbonisation and use increasingly more green gases like clean hydrogen,” she said.
Simson noted that the Southern Gas Corridor has been an important energy diversification project for the EU.
“The corridor will soon open and transport gas from the Caspian Sea to the EU. The project relies on a source that has so far not delivered any gas to the EU via a new route. This will enhance the EU’s security of gas supply,” added the commissioner.
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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