BAKU, Azerbaijan, May 24. Expansion of the Southern Gas Corridor will require $20 billion, said Azerbaijan’s deputy energy minister Elnur Soltanov, Trend reports.
“Azerbaijan does have resources to increase the capacity of its natural gas pipelines. It general, it will require about $20 billion both upstream and midstream. We’re working with European institutions, including financial institutions to understand the terms of financing of that,” the deputy minister said during discussions on EU-Azerbaijan energy cooperation.
Southern Gas Corridor started transportation of Azerbaijani gas to Europe on December 31, 2020. It transports gas from the Caspian Sea region to European countries through Georgia and Türkiye.
The project’s cost totaled $33 billion, as compared to the forecast $45 billion. Capital expenditures on the SGC project are expected to be fully reimbursed within 8-10 years.
In July 2022, Azerbaijan and EU agreed to increase the volume of gas supplies via the Southern Gas Corridor from the current 10 bcm to 20 bcm by 2027.
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