BAKU, Azerbaijan, February 1. Southern Gas Corridor CJSC’s financial requirements in 2024 will be fully covered by projects’ revenues, Trend reports with reference to Fitch Ratings.
As of the end of 2023, Southern Gas Corridor CJSC (SGC) obtained funding totaling $6.4 billion through a blend of debt and equity, with $2.4 billion injected by the state.
During the period of 2020-2023, SGC refrained from acquiring any new debt. By the close of 2023, approximately 72 percent of its total debt consisted of bonds issued in favor of the State Oil Fund of the Republic of Azerbaijan and Eurobonds, while the remaining 28 percent comprised loans from international financial institutions (IFIs) or IFI-backed sources.
With all its projects already operational, SGC anticipates that its financial requirements for 2024 will be entirely met by revenues generated from the Shah Deniz, South Caucasus Pipeline, Trans-Anatolian Pipeline (TANAP), and Trans Adriatic Pipeline (TAP) projects, alongside existing cash reserves, as indicated by management forecasts.
Southern Gas Corridor started transportation of Azerbaijani gas to Europe on December 31, 2020. It transports of gas from the Caspian Sea region to European countries through Georgia and Türkiye.
This large-scale project is aimed at 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 $45 billion. Capital expenditures on the SGC project are expected to be fully reimbursed within 8-10 years.
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