NGW Magazine: Azerbaijan at half-way mark for SGC
Money keeps coming for the Southern Gas Corridor as it has enjoyed cast-iron support politically – so far, at least.
Azerbaijan has spent $6bn of its total $11.9bn share of the Southern Gas Corridor (SGC) costs since 2014, the director-general of the Southern Gas Corridor Company Afgan Isaev told NGW late last year; in 2016, Baku spent just $2bn on the project, he said.
SGC consists of developing the second stage of Shah Deniz gas field (SD2), the South Caucasus pipeline expansion (SCPX), Trans-Anatolian Natural Gas Pipeline (Tanap) and the Trans Adriatic Pipeline (TAP). Azerbaijan owns 16.7% of SD2 and SCPX, 58% of Tanap and 20% of TAP.
Isaev said that as of the end of 2016, about 87.9% of SD2, 74.5% of the SCPX, 59.3% of Tanap and 31.8% of TAP were complete.
SGC is designed to deliver 16bn m3/yr of gas to Turkey and 10bn m3/yr to the European Union by 2021 in the first stage; and the amount will rise gradually to 31bn m3/yr during that decade.
Touching upon the foreign credits the project has attracted, he said that 2016 was a successful year: “Azerbaijan sold ten-year bonds totalling $1bn with 7% interest in international markets and it attracted $1.5bn credits and $1.276bn worth of syndicated loans for SGC.”
He said the Asian Development Bank approved early December a 15-year, $500mn loan as well as a $526mn syndicated credit for developing SD2.
Continue reading in NGW Magazine issue 10. Now available at Joomag, for Apple (iPad and iPhone) and for Android
Ilham Shaban, Dalga Khatinoglu
Your first choice for Analysis, Insight and Information in the world of natural gas.
|VISIT NGW STORE|