Azerbaijan may receive up to $50 bln from implementation of Southern gas corridor

Azerbaijan's income from the implementation of the project for creating the Southern Gas Corridor (SGC) will amount to $30 billion-$50 billion, executive director of the Azerbaijani State Oil Fund Shahmar Movsumov said.

"According to preliminary calculations, Azerbaijan will receive with varying prices for oil, both from the sale and from the transport of hydrocarbons, $30 billion to $50 billion. This, in its turn, will give a push to the development and the economy both of the country and also to the region as a whole," Movsumov said during an interview with the Caspian Energy journal.

He said that the implementation of the SGC project was aimed at the development of Azerbaijan's economy in the long term.

"The SGC will give Azerbaijan additional economic and financial opportunities and over the course of a decade will provide the country with economic profit and an inflow of forex," Movsumov said.

The Southern Gas Corridor project envisages the creation of pipeline infrastructure for the transport of Azerbaijani gas, produced as part of Stage II of the development of the Shah Deniz field, to Europe through Turkey.

The main components of the project are: Stage II of the Shah Deniz project, the expansion of the South Caucasus trunk pipeline from Baku to Georgia to the border with Turkey, the construction of the Trans-Anatolian Pipeline (TANAP) from the eastern to western borders of Turkey and the Trans Adriatic Pipeline (TAP), which connects Greece, Albania and the south of Italy.

Supplies of Azerbaijani gas to Europe are expected at the start of 2020 in the amount of 10 billion cubic meters (bcm). In addition, 6 bcm of Azerbaijani gas will be supplied to the Western regions of Turkey. The cost of the project is estimated at $40 billion.

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