BAKU, Azerbaijan, July 1
By Leman Zeynalova – Trend:
Southern Gas Corridor closed joint-stock company (CJSC) of Azerbaijan has to date invested around $10 billion in the Southern Gas Corridor projects using its revenues from the projects, the authorized capital and borrowings, Ibrahim Ahmadov, deputy head of the public relations and events department at Azerbaijan’s state oil company SOCAR, told Trend.
Ahmadov noted that the CJSC spent nearly $63.6 million for financing its share in the Southern Gas Corridor projects from January 1 to June 30, 2020.
Southern Gas Corridor CJSC has inked two agreements with the Asian Development Bank. One of the agreements envisages a guarantee for attracting $524.5 million, which was fully utilized by the CJSC. The second agreement for allocation of $500 million worth loan was annulled as a result of project cost reduction.
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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