The first phase of Azerbaijan’s flagship Southern Gas Corridor (SGC) project has begun, with Azerbaijan’s President, Ilham Aliyev, inaugurating the project at a ceremony on May 29. The project has been predicted to bring additional dividends to Azerbaijan.
“[The SGC] will go down in history as the most important project realized until recent time in the world’s oil and gas industry. The project, which will ensure the energy security of Europe, covers many parties with different interests, including six countries and 11 companies,” said European Oil and Gas expert, Bahruz Guliyev.
Located in the Caspian Sea, the Southern Gas Corridor mega-project stretches over 3,500 kilometres, crosses six countries and connects over a dozen major energy companies. The Southern Gas Corridor project comprises of several separate energy projects representing a total investment of approximately AU$52 billion.
Upon completion, the Southern Gas Corridor project will add a further 16 billion cubic metres of natural gas per annum to 10.9 billion cubic metres already produced under SD1 project. Natural gas will be supplied via pipelines through Azerbaijan, Georgia and Turkey to Europe. The main supply source of this natural gas is the Shah Deniz gas field, located in the Caspian Sea.
Mr Aliyev, speaking at the opening ceremony, said that the pipeline – part of the Southern Gas Corridor project – had created “a new European energy map.”
“This project has been made possible through a strong regional alliance between Azerbaijan, Georgia and Turkey,” Mr Aliyev said.
The next stage will be commissioning of the TANAP gas pipeline, through which the gas will enter the territory of Turkey and further Europe. The launching ceremony of TANAP will take place on June 12 in Turkish Eskisehir.
The Southern Gas Corridor comprises the following four projects:
- The operation of Shah Deniz natural gas-condensate field (“SD1” project) and its full-field development (“SD2’” project).
- The development of the South Caucasus Pipeline (“SCP” project) and its expansion (“SCPX” project).
- The construction of the Trans-Anatolian Natural Gas Pipeline (“TANAP” project).
- The construction of the Trans Adriatic Pipeline (“TAP” project) (SD2, SCPX, TANAP and TAP collectively, the “Projects.