The Southern Gas Corridor (SGC) is an important project for Azerbaijan, both economically and politically, Otel Huseynov, deputy head of the Oil and Gas Department of the Energy Ministry, told report.az.
He was commenting on the SGC’s position in the energy market.
Huseynov noted that this project is of particular importance in diversifying Europe’s energy resources and turning Azerbaijan into an energy hub.
"With the project’s implementation, our country got the opportunity to export its rich gas resources to regional and European markets. The income obtained this way will play an important role in ensuring the sustainable economic development of our country. Along with being economically benefitial, the project is also of great political importance. Thus, the Southern Gas Corridor, an energy security project, will ensure the energy security of the region and Europe, thereby further strengthening the growing authority of Azerbaijan both regionally and globally," he added.
The 7th Ministerial Meeting will take place through videoconferencing in Baku on Feb. 11 within the SGC Advisory Council. The Council meeting will be attended by European Commissioner for Energy Kadri Simson, EU Commissioner for Neighborhood Policy and Enlargement Negotiations Oliver Varhelyi, as well as high-ranking representatives of the US, Albania, the UK, Bulgaria, Bosnia and Herzegovina, Georgia, Croatia, Italy, Hungary, Montenegro, Romania, Serbia, North Macedonia, Turkey, Turkmenistan, and Greece.
The event will also be attended by representatives of companies participating in the project, the World Bank, European Bank for Reconstruction and Development, European Investment Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and other international financial institutions.
The first ministerial meeting within the SGC Advisory Council took place on Feb.12, 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.
