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Azerbaijan to get revenues also from third countries’ gas supplies via Southern Gas Corridor

Oil&Gas Materials 21 January 2021 09:51
Azerbaijan to get revenues also from third countries’ gas supplies via Southern Gas Corridor

BAKU, Azerbaijan, Jan.21

By Leman Zeynalova – Trend:

Southern Gas Corridor has ensured direct supply of Azerbaijani gas to European markets for the first time, Ibrahim Ahmadov, deputy head of the public relations and events department at SOCAR, told Trend.

He noted that the Southern Gas Corridor includes Shah Deniz field development project, as well as three pipelines that run 3,500 kilometers from Azerbaijan to Europe. “SOCAR is a shareholder in all of those pipelines that connect two continents. Therefore, if there is a decision to increase Southern Gas Corridor’s capacity in the future, Azerbaijan will be receiving revenues not only from the sale of its own gas, but also from the transportation of gas of third countries via this corridor.”

Azerbaijani has ensured access to European gas market through the Southern Gas Corridor, he said, adding that the country is not dependent on anyone in selling its gas to Europe. “As such, the Corridor has strengthened Azerbaijan’s economic and political independence. The Southern Gas Corridor is among the EU’s strategic projects and its commissioning has significantly increased Azerbaijan’s strategic importance for Europe and other countries.”

Following the start of commercial operations on November 15, 2020, the Trans Adriatic Pipeline (TAP) AG confirmed on Dec. 31 the commencement of gas flows from Azerbaijan. The first gas has reached Greece and Bulgaria, via the Nea Mesimvria interconnection point with DESFA, as well as Italy, via the Melendugno interconnection point with SNAM Rete Gas (SRG).

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP will facilitate gas supplies to South Eastern European countries through prospective interconnectors. In particular, Bulgaria will be able to cover up to 33% of its total gas demand through TAP after the completion of the Interconnector Greece Bulgaria (IGB). TAP’s exits in Greece and Albania together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.

As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.

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Follow the author on Twitter: @Lyaman_Zeyn

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