Azerbaijan announces expected revenues from SGC - EXCLUSIVE

Revenues from the Southern Gas Corridor (SGC) will be close to $40 billion by 2046, SOFAZ Executive Director Shahmar Movsumov told Report.

"By initial calculations, if the oil price reaches $60 a barrel and all projects of the SGC operate at full, the revenues from the project are forecasted to make up $40 billion in 2021-2045," Movsumov said.

The Executive Director noted that the SGC will promote the establishment of connection between the EU gas markets and one of the world's largest gas field: "Azerbaijan, Turkmenistan and Iraq are expected to be the key gas exporters. Iran and Egypt may also join in the future. Main transit country is Turkey, other transit lines will pass through the costs of the Black Sea and Mediterranean Sea. A significant factor on the SGC is that this project is realized quickly and will change energy map of South and Southeast Europe and broader territory. All these factors show that Azerbaijan is not only oil exporter, but also will become main gas exporter and ensure energy security in the region. The project will create extra economic and financial opportunities and provide out country with economic profit and additional currency during decades."

As of today, $1.2 billion was directed to financing of authorized capital of the SGC CJSC, $2.5 billion to acquisition of corporate securities.

"The project will be funded through syndicated loans raised from the international financial institutions and export credit agencies, as well as issuance of securities by the CJSC," he added.