"The Southern Gas Corridor (SGC) is a pipeline system initially ensuring the delivery of natural gas from Azerbaijan to Georgia, Turkey and different European countries with further expansion prospects and gas transit opportunities to the third countries," Murad Heydarov, Chairman of TAP's Board of Directors, said.
In Heydarov's words, the SGC ensures the double gas supply diversification for Europe.
As for Azerbaijan's benefits from the project, according to Heydarov, the project has provided Azerbaijan with 25-year-long revenue from the European countries' market.
The Chairman of TAP's Board of Directors also stressed that the expansion of SGC's infrastructure is possible, with the corridor available for gas producers from Azerbaijan and the Caspian region, as well as the Mediterranean Sea. In Heydarov's words, the system may easily be expanded.
The operational capacity of the TAP is set to equal 20 bln, while TANAP's will hit 31 bln, with an overall capacity of the South Caucasus pipeline reaching 30 bln cubic meters after the expansion.
It is noteworthy that the first meeting of the Advisory Council of the Southern Gas Corridor (SGC) was held on 12 February 2015.
The SGC comprises the key components as follows: the South Caucasus Pipeline Expansion Project (SCPX), the Trans-Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP).
In 2021, Georgia is set to receive 1.014 bln cubic meters of gas in exchange for allowing Azerbaijani gas to pass through its territory. This year, the volume of additional gas for Georgia will amount to 508.7 mln cubic meters, with this surpassing the volume of gas (888.6 mln cubic meters) Georgia was supplied by in 2020 via the SGC by 126 mln cubic meters.
Azerbaijan put forward the initiative to create the Southern Gas Corridor. Azerbaijani leader Ilham Aliyev said that they drew up the Energy Map for Eurasia. In his words, Azerbaijan assumed the responsibility of funding the project by building three interconnected 3,500 km pipelines, with this enabling European customers to get Azerbaijani gas. Aliyev stressed this is beneficial for both Europe and Azerbaijan.
In 2021, Azerbaijan's giant Shah Deniz field gas started flowing to the EU. The Southern Gas Corridor (SGC) aims to develop gas supply routes passing through the Southern Caucasus and Turkey to supply gas from the region to Europe. The Georgian PM Giorgi Gakharia defined this fact as a tremendous step forward.
Georgia is a host country in the SGC, with this implying that following the corresponding agreements, Georgia will get the SGC gas at a considerably reduced rate. The options contract enables the country to get around 5% of gas passing through it annually. The deal is valid before 2066. The additional gas purchase and sale agreement is in force until 2026. In accordance with the agreement, Georgia will receive around 500 mln cubic meters of gas annually.
