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Resources from Southern Gas Corridor to be available via Serbian-Hungarian pipeline

Oil&Gas Materials 2 December 2020 14:25 (UTC +04:00)
Resources from Southern Gas Corridor to be available via Serbian-Hungarian pipeline

BAKU, Azerbaijan, Dec.2

By Leman Zeynalova – Trend:

Construction of a 50km pipeline has started on the Serbian-Hungarian border which will give access to the Southern Gas Corridor, including Azerbaijani, central Asian gas and Greek LNG gas, Péter Szijjártó, Hungary’s minister of foreign affairs and trade said, Trend reports citing Hungarian media.

Szijjártó said energy supplies were always a critical issue in central Europe, and the countries of the region were making significant progress to diversify their energy resources. Energy supplies are also a matter of national security in the region, he added.

Infrastructure is historically defined, with East-West networks being more developed than North-South networks, an issue that needs to be addressed, he said.

Liquefied gas will be part of Hungary’s energy mix as the LNG terminal in Krk, in Croatia, comes online in January, he said, adding that Hungary has reserved an annual 1 billion cubic metres of LNG from this terminal starting in January 2021, enabling the country to sign a long-term gas supply contract with Shell which does not involve Russian sources, he said.

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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