The purpose of the Southern Gas Corridor is to ensure the development of the second stage of the Shah Deniz gas condensate field. The primary aim is to export natural gas to Turkey, and then on to Southern Europe, through the extended South Caucasus Gas Pipeline, TANAP and TAP.
The second stage of the full-scale development of the Shah Deniz project, Shah Deniz Stage 2, is a giant project to deliver Azerbaijani gas to Europe and Turkey, supplying gas to European markets through the Southern Gas Corridor and improving their energy security.
The main elements of the Southern Gas Corridor project are:
The full-scale development of the Shah Deniz gas condensate field;
The expansion of the South Caucasus Pipeline (SCPX);
The implementation of the Trans-Anatolian Natural Gas Pipeline (TANAP) project.
The implementation of the Trans-Adriatic Pipeline (TAP) Project

In 2011, the EU and Azerbaijan signed a Joint Declaration supporting the development of direct gas routes from the Caspian to Europe. This, together with Intergovernmental Agreements on TANAP and TAP, paved the way for long-term gas sale contracts. On June 27, 2012, President of the Republic of Azerbaijan, Ilham Aliyev, and Turkish Prime Minister, Recep Tayyip Erdogan, signed an agreement on TANAP. On September 20, 2014, the foundations of the Southern Gas Corridor were laid. The Southern Gas Corridor was inaugurated on May 29, 2018, in Baku, and the Trans-Anatolian Pipeline (TANAP), an important part of this corridor, was inaugurated in Eskişehir on June 12. On June 30, 2018, the first commercial gas was transported to Turkey through the Trans-Anatolian Pipeline (TANAP). On November 30, 2019, the inauguration ceremony of the part of the TANAP gas pipeline connecting to Europe was held. It is planned to start delivering Azerbaijan’s natural gas to Europe in 2020.

The total value of the Southern Gas Corridor infrastructure is $40 billion.
 

 

The Full-scale Development of Shah Deniz Gas Condensate Field


Shah Deniz Stage 2 is a giant project that will produce another 16 billion cubic metres per year (bcma) of gas, in addition to the 10 bcma gas produced by the Shah Deniz Stage 1 project. Along the 3,500 km route, Shah Deniz gas is transported to a high point of 2,500 meters and a low of 800 metres below sea level. The project includes the following works:
-    The installation of two bridge-linked offshore platforms;
-    The drilling of 26 gas production wells with two semi-submersible rigs;
-    The laying of 500 km of subsea pipelines, which will connect subsea wells and the onshore terminal;
-    An upgrade of the installation vessels;
-    An expansion of Sangachal Terminal for new gas processing and compression facilities.
Work on the Shah Deniz Stage 2 project to obtain the first gas has been completed. The planned work on the overall project was 94% finished at the end of December 2019.


The Expansion of The South Caucasus Pipeline (SCPX) Project

The main technical and economic indicators of the project are as follows:

-    The length of the SCP Pipeline is 691 km, with 443 km in Azerbaijan and 248 km in Georgia;
-    The length of SCPX Pipeline 424 km in Azerbaijan, 63 km in Georgia and 2 km in the TANAP interconnection;
-    The initial transmission capacity with provide an additional 7 bcma, with a total of 14.4 bcma of natural gas (expandable to 23.4 bcma);
-    Shareholders: BP as the operator (28.8%), AzSCP (10%), SGC Midstream (6.7%), Petronas (15.5%), Lukoil (10%), NICO (10%) and TPAO (19%).

In 2018, work on SCP continued successfully along the pipeline route in Azerbaijan and Georgia. According to information at the end of December 2019, the installation of the pipeline has been completed. 


Trans-Anatolian Natural Gas Pipeline (TANAP) Project


The main technical and economic indicators of the project are as follows:

-    The shareholders are SGC (51 %), BOTAS (30%), BP (12%) and STEAS (7%)
-    The pipeline is 1,850 km long;
-    The section of the pipeline up to Eskişehir was put into operation in June 2018, while the part up to the border with Greece was commissioned in 2019;
-    The initial transmission capacity is 16.2 bcma (expandable to 30.7 bcma);
-    The transportation of the first volumes of gas to Turkey through the TANAP Pipeline began on June 30, 2018. 

Starting from the Posof settlement of Ardahan and passing through 20 cities, 67 towns and 600 villages along the territory of Turkey and reaching Europe in the Ipsala part of Edirne, the 1,850-km pipeline has been ready to transport Azerbaijani gas to Europe via the Trans-Adriatic Pipeline (TAP) on the Turkish-Greece border since July 1, 2019. On November 30, 2019, in Ipsala in Turkey, President of Azerbaijan, Ilham Aliyev, attended the opening ceremony of the TANAP Pipeline linking to Europe.

 


The Trans-Adriatic Pipeline (TAP) Project

The main technical and economic indicators of the project are as follows:

-    The length of the pipeline is 878 km (550 km in Greece, 215 km in Albania; 105 km in the Adriatic Sea and 8 km in Italy);
-    The date of commissioning is planned to be in 2020;
-    The initial transmission capacity is 16.2 bcma (expandable to 30.7 bcma);
-    The shareholders are BP (UK) - 20%; SGC - 20%; Snam (Italy) - 20%; Floxys (Belgium) - 19%; Enagas (Spain) - 16%; Axpo (Switzerland) - 5%;

Now work on TAP has been completed. The TAP pipeline has been filled with natural gas from the Greek-Turkish border to the natural gas reception terminal in southern Italy. TAP is expected to be completed by the end of 2020 and ready for gas transportation. 


The Southern Gas Corridor Advisory Council 

The State Commission was established by Order No. 15 of the President of the Republic of Azerbaijan, dated October 29, 2013, ‘On Measures Related to the Transportation of Azerbaijani Natural Gas to the World Market along the Southern Gas Corridor”. Then Order No. 287 ‘On Relevant Measures Related to the Second Stage of the Operation of Shah Deniz Gas Condensate Field and the Establishment of the Southern Gas Corridor with Regard to Other Projects’, dated February 25, 2014, was signed. The initiative to establish an Advisory Council of energy ministers of the countries involved in the implementation of the Southern Gas Corridor project was put forward by President of the Republic of Azerbaijan, Ilham Aliyev. The Ministry of Energy of the Republic of Azerbaijan was assigned the implementation of activities related to the organisation of the Advisory Council.

Within the Southern Gas Corridor Advisory Council, the first meeting of ministers was held on February 12, 2015, the second on February 29, 2016, the third on February 23, 2017, the fourth on February 15, 2018, the fifth on February 20, 2019, and the sixth on February 28, 2020.
 

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