Azerbaijan will earn $50 bln on Southern Gas Corridor

Baku. 22 June. REPORT.AZ/ Azerbaijan intends to make a profit of 30-50 bln USD from Southern Gas Corridor (SGC) project. 

Report informs, the State Oil Company of Azerbaijan Republic (SOCAR) reported to publisher Natural Gas Europe.

The company said that even in worst-case scenario, Azerbaijan's income for 25 years on the contract of sale will be at least 30 bln USD.

Azerbaijan's share in the "Shahdeniz" project is 16.7%, Trans-Anatolian Natural Gas Pipeline (TANAP) - 58%, Trans Adriatic Pipeline (TAP) - 20%. Total costs for the implementation of SGC is expected to reach 39.1 bln USD, of which 9 bln will be invested by Azerbaijan.

"In turn, the country expects to earn 30-50 bln USD on the project. Even excluding revenues from gas exports and transit, and taking as a basis the average price of oil at 60 USD / barrel in 2020-2030, SGC shareholders will receive 26 bln USD only from the condensate export. At the price of 80 USD/barrel this figure will reach 35 bln USD. These figures relate to the 10-year period. For 25 years, taking into account the proceeds from the sale of gas transit revenues and tax revenues, Azerbaijan's profit will be about 30-50 bln USD", SOCAR said.