ADB expresses willingness to fund Azerbaijan’s gas project
Asian Development Bank (ADB) is ready to allot credit worth $450 million for development of the Phase 2 of the Azerbaijani gas condensate field Shah Deniz, reads information on ADB web site.
The bank does not include the schedule of consideration of the issue of credit allotment by the ADB Board of Directors. It is also unknown what company ADB is going to allot credit to.
The cost of the Shah Deniz Phase 2 is estimated at $28 billion. Annual production from the Shah Deniz Phase 2 will be 16 bcm a year, of which 10 bcm will be exported to Europe and 6 bcm to Turkey. Gas supplies to Europe will begin in 2020.
The Shah Deniz project partners include BP (operator with 28.8%), TPAO (19%), SOCAR (16.7%), Petronas (15.5%), LUKoil (10%) and NICO (10%). –0--
Economics
-
Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
-
According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
-
The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
-
"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
Leave a review