The Southern Gas Corridor

The goal of the Southern Gas Corridor (SGC) is to carry out the 2nd stage of exploitation of the Shah Deniz gas condensate field and ensure the export of natural gas to Türkiye and Southern Europe initially through the expanded South Caucasus gas pipeline, Trans-Anatolian Pipeline and Trans-Adriatic Pipeline.

On 20 September 2014, the foundation of the Southern Gas Corridor was laid. It consists of the following 4 elements:

- Second stage of development of Shah Deniz

- Expansion of the South Caucasus Pipeline (SCPX);

- Trans Anatolian Natural Gas Pipeline;

- Trans-Adriatic Pipeline.

 

 

Shah Deniz Stage 2

   

- A Production Sharing Agreement was signed on 4 June 1996. The field was commissioned in 2006.

- Initial balance reserve of gas and condensate: more than 1 trillion cm and more than 2 billion barrels of condensate;

- On 30 June 2018, the first Shah Deniz 2 commercial gas was transported to Türkiye , and on 31 December 2020 to Europe.

- Shareholders: BP - 29.99%, Lukoil - 19.99%, TPAO - 19%, SOCAR - 14,35%, NICO – 10%, SGC –21,02%.

 South Caucasus Pipeline and expansion of South Caucasus Pipeline (SCPX)

- Launch of SCPX: 2006;

- Pipeline length: 692 km;

- Transmission capacity: 7.4 bcm per annum;

- Launch of SCPX: 2018;

- As a result of the expansion, the transmission capacity of the pipeline is 16 bcm per annum;

- Annual transmission capacity can be increased to 31 bcm if required;

- Shareholders: BP - 29.99%, Lukoil - 19.99%, TPAO - 19%, SOCAR - 14,35%, NICO – 10%, SGC – 21,02%.

Trans Anatolian Natural Gas Pipeline (TANAP)

- On 26 June 2012, the agreement on TANAP system between the Government of the Republic of Azerbaijan and the Government of the Republic of Türkiye was signed and the legislative bodies of both states ratified the agreement;

- On 17 March 2015, a groundbreaking ceremony for TANAP was held in Kars, Türkiye, and construction of the pipeline began.

- The Southern Gas Corridor was inaugurated on 12 June 2018, and on June 30, 2018, the first commercial gas was transported to Türkiye. On November 30, 2019, the inauguration ceremony of the part of the TANAP gas pipeline connecting Europe was held. The construction of TANAP was completed;

- Pipeline length: 1812 km;

- Initial transmission capacity: 16.2 bcma (expandable to 31 bcma);

- It is planned to deliver 6 bcm out of 16 bcm Azerbaijani gas to Türkiye and 10 bcm out of 16 bcm to consumers in Europe;

- Shareholders: SGC (51 %), BOTAŞ (30%), BP (12%), Socar Turkey Energy (7%).

Trans-Adriatic Pipeline (TAP)

- TAP project as one of the key elements of the Southern Gas Corridor was built to transport Caspian gas to Europe;

- The groundbreaking ceremony for TAP was held on May 17, 2016 in Saloniki, Greece, and construction of the pipeline began;

- On 15 November 2020 TAP was commissioned and commercial operations began. The supply of commercial natural gas to Italy, Greece and Bulgaria through TAP started on 31 December 2020;

- Initial transmission capacity: 10 bcma (expandable to 20 bcma);

- Length of the pipeline: 880.8 km (Greece-551.5 km, Albania – 215.9 km, Adriatic Sea – 105 km, Italy – 8.4 km);

- Shareholders: BP – 20%; SGC– 20%; Snam – 20%; Fluxys – 20%; Enagas – 20%.

Southern Gas Corridor Advisory Council

The State Commission was established  by Order No. 15 of the President of the Republic of Azerbaijanon dated 29 October 2013 “on measures related to the transportation of Azerbaijani natural gas to the world market along the Southern Gas Corridor”. Order No. 287 “on relevant measures related to the second stage of the operation of Shah Deniz gas-condensate field and establishment of the Southern Gas Corridor with regard to other projects” dated 25 February 2014 was signed. The initiative to establish 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 has been assigned the implementation of activities related to the organization of the Advisory Council.

It should be noted that the first Ministerial Meeting was held on 12 February 2015, the second meeting on 29 February 2016, the third meeting on 23 February 2017, the fourth meeting on 15 February 2018, the fifth meeting on 20 February 2019, the sixth meeting on 28 February 2020, the seventh meeting on 11 February 2021 and the eighth meeting on 4 February 2022, the nineth meeting on 3 February 2023 within the Southern Gas Corridor Advisory Council.