BAKU, Azerbaijan, Feb.7. The European Bank for Reconstruction and Development (EBRD) is looking at the finance for the Southern Gas Corridor’s expansion, Kamola Makhmudova, head of EBRD in Azerbaijan, told reporters Feb.7.
She was speaking on the sidelines of the event dedicated to the launch of IT Hub Azerbaijan project in Baku.
“At the moment the government of Azerbaijan is talking to the management of the Bank. Currently, we’re waiting for the results of the diagnostics. So, first we need to see the diagnostics for the project’s economy and once it is there, the EBRD will consider arranging financing, or participating in the financing of the Southern Gas Corridor,” Makhmudova explained.
Southern Gas Corridor started transportation of Azerbaijani gas to Europe on December 31, 2020. It transports gas from the Caspian Sea region to European countries through Georgia and Türkiye.
This large-scale project is aimed at the diversification of energy supply routes and sources, thereby contributing to strengthening Europe’s energy security. The project’s cost totaled $33 billion, as compared to the forecast of $45 billion. Capital expenditures on the SGC project are expected to be fully reimbursed within 8-10 years.
In July 2022 Azerbaijan and EU agreed to double the volume of gas transportation from Azerbaijan from 10 billion cubic meters to 20 billion cubic meters per year by 2027.
Follow the author on Twitter: @Lyaman_Zeyn