Azerbaijan, EBRD mull financing of Southern Gas Corridor’s expansion

Gas Materials 12 September 2022 16:51
Baku, Azerbaijan Trend News Agency Leman Zeynalova
Azerbaijan, EBRD mull financing of Southern Gas Corridor’s expansion

Participation of the European Bank for Reconstruction and Development (EBRD) in the expansion of the Southern Gas Corridor is important, said Azerbaijan’s energy minister Parviz Shahbazov.

He made the remarks during a meeting with EBRD President Odile Renaud-Basso in Baku, Trend reports citing the energy ministry.

Shahbazov noted that the memorandum of understanding signed between Azerbaijan and EU on strategic cooperation in the sphere of energy creates a basis for the Corridor’s expansion.

He pointed out that more than 10 countries are interested in partnership with Azerbaijan in natural gas supply.

“Financing of the Southern Gas Corridor’s expansion is important for greater natural gas supplies to European countries. Financing of the Corridor’s expansion will facilitate energy transition and prevent return to coal as a result of the energy crisis. At the same time, the Southern Gas Corridor will diversify its sources by transporting hydrogen,” said Shahbazov.

The supply of Azerbaijani gas to Europe through the Southern Gas Corridor began on December 31, 2020. Azerbaijan exported its natural gas to the European market through pipelines for the first time in history.

The Trans Adriatic Pipeline (TAP) which is the European part of the Southern Gas Corridor, annually supplies eight billion cubic meters of gas to Italy and one billion cubic meters of gas to Greece and Bulgaria.

The European Union has expressed its support to the expansion of the Southern Gas Corridor. In July this year, Azerbaijan and the European Commission signed a memorandum of understanding, which among other issues, also envisages doubling the Corridor’s capacity to 20 billion cubic meters per year by 2027.