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If Southern Gas Corridor starts shipment by late 2020, Azerbaijan should see revenues in 2021 – IMF

Oil&Gas Materials 21 December 2020 10:04 (UTC +04:00)

BAKU, Azerbaijan, Dec.21

By Leman Zeynalova – Trend:

For Europe, the launch of the Southern Gas Corridor (SGC) is expected to help diversify the energy supply and provide a cleaner energy source, the International Monetary Fund (IMF) told Trend.

“For Azerbaijan, the SGC is expected to boost exports and growth. In addition, the new capacity to export gas should provide an impetus to Azerbaijan’s effort to improve energy efficiency.

“The launch of the SGC is expected to boost economic growth and strengthen fiscal and external positions. This should (partly) compensate for the long-term, gradual slowdown of Azerbaijan’s oil production.

“If the shipment of gas starts, as announced, by the end of 2020, Azerbaijan should see the boost to exports, revenues and growth already in 2021,” said IMF.

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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Follow the author on Twitter: @Lyaman_Zeyn

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