Southern Gas Corridor is a project that reshapes the energy map of Europe

Caspian Energy (CE): Mr. Shakhbazov, the TANAP gas pipeline was commissioned in June. Could you please tell about the nearest and long-term plans of development of this project?

Parviz Shakhbazov, Minister of Energy of the Republic of Azerbaijan: As is known, the Southern Gas Corridor (SGC) is one of the world’s largest infrastructure projects initiated by Azerbaijan and being implemented under the leadership and initiative of Azerbaijan. This project, ensuring the energy security of Europe, has boosted a growth of Azerbaijan’s influence in the international arena.

Speaking at the opening ceremony of the Southern Gas Corridor project on May 29 of this year, President of the Republic of Azerbaijan Mr. Ilham Aliyev said: “Energy security matters stay high on the global agenda nowadays, and the national security of countries largely depends on energy security as well. The Southern Gas Corridor is also a very important project in the field of diversification of energy resources, and I believe that it is an indispensable project ... The Azerbaijani gas is a new source, and the Southern Gas Corridor is a new energy belt, a project that is reshaping the energy map of Europe. The interests of all parties involved in the implementation of this project were met. This is also very important. The balance of interests was struck”.

At present, the status of the project’s implementation is as follows: 

- The work on the Shah Deniz-2 project is 100% complete. Within the project, 14 subsea wells were drilled using Heydar Aliyev and Istiglal drilling rigs. The Sangachal Terminal Expansion Programme has been completed; subsea pipelines that lead to the terminal, wells, underwater infrastructure, the Shah Deniz-2 platform and the terminal were connected for the first time.

- Work on the South Caucasus Pipeline Expansion Project is 97.8% complete. 100.0% of the first gas custody transfer works were carried out, and commercial gas transportation to Turkey was launched on June 30, 2018 within the scope of the Shah Deniz-2 project.

- The official opening ceremony of a section of the TANAP gas pipeline running towards Eskisehir was held on June 12 this year. First commercial gas supplies to Turkey within the scope of the TANAP project were commenced on June 30. The initial capacity of TANAP is estimated at 16 billion cubic meters, 23 billion cubic meters in 2023 and 31 billion cubic meters in 2026.

- Works on TAP are 77.7% complete and continue according to the schedule.

As for the prospects of the Southern Gas Corridor, it should be noted that development of new interstate natural gas transmission networks will become a reliable bridge between the Caspian Sea basin and European energy markets, and diversify natural gas routes for the Southeast European countries. This creates conditions for implementation of the Ionian-Adriatic Pipeline, which will bring gas to new markets through Albania, Croatia, Bosnia and Herzegovina, and Montenegro. On August 25-26, 2016, during the Dubrovnik Forum Azerbaijan, Croatia, Albania, Montenegro and Bosnia and Herzegovina signed a Memorandum of Understanding on a forthcoming construction of the Ionian Adriatic Pipeline. In addition, on 15 February of this year during the 4th Ministerial Meeting of the Southern Gas Corridor (SGC) Advisory Council Albgaz, Monteneqro Bonus, BH Gas (Bosnia and Herzegovina) and Plinacro (Croatia) signed the Letter of Intent to set up a new company for designing the Ionian-Adriatic Pipeline.

At the same time some volume of Azerbaijan gas to be transported to Europe via the Trans Adriatic Pipeline, which is part of the Southern Gas Corridor, will be delivered to Bulgaria via the Greece-Bulgaria Interconnector.