Talks underway to attract $ 2.75 bln to Southern Gas Corridor

Baku. 5 April. REPORT.AZ/ Talks are underway to attract $ 2.75 bln to the Southern Gas Corridor (SGC) project in order to fund Azerbaijan's participation share in the Southern Gas Corridor project.

Report was informed in the "Southern Gas Corridor" CJSC, negotiations are underway with the European Investment Bank ($ 500 million), banks that will benefit from Germany's guarantee (up to $ 1.5 bln), the MIGA (Multilateral Investment Guarantee Agency, included in the WB Group) and its beneficiaries ($ 750 million).

Notably, "Southern Gas Corridor" CJSC was established by Azerbaijani President`s decree "On some events connected with the second stage of the Shah Deniz gas condensate and other projects related to establishment of the Southern Gas Corridor" dated February 25, 2014. It is a closed joint stock company, 51% of shares as the state property owned by the Ministry of Economy and 49% SOCAR. "Southern Gas Corridor" CJSC is a company representing Azerbaijan's interests in the international SGC gas project.

The Southern Gas Corridor is a project to transport the gas, produced in the second phase development of "Shah Deniz" field in the Azerbaijani sector of the Caspian Sea to Europe. Shah Deniz 2 project, South Caucasus Pipeline Expansion, the Trans-Anatolian Pipeline (TANAP), Trans Adriatic Pipeline (TAP), which will extend from Greece, Albania and the South of Italy with the bottom of the Adriatic Sea, are key components of the Southern Gas Corridor.

The International Bank for Reconstruction and Development (IBRD), the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB) have allocated loan to "Southern Gas Corridor" CJSC for participation in the project.