Projects for development and export of Azerbaijani gas to Europe become more expensive

Investments into implementation of the projects aimed at Azerbaijani gas export to Europe will reach $45-48 billion, Rovnag Abdullayev, President of State Oil Company of Azerbaijan (SOCAR), told journalists.

Initially the investments were expected to reach $45 billion. But one can draw conclusion from Abdullayev’s statement that cost of the Shah Deniz Phase 2 project and the project of Azerbaijani gas export to Europe goes up. However, it is unclear if the growth is expected in the field development project or construction of a new infrastructure.

Investments into the infrastructure will cover expansion of the Southern Caucasian gas pipeline, construction of the trans-Anadolu (TANAP) and trans-Adriatic (TAP) gas pipelines. TANAP is considered the most expensive among them, in which SOCAR owns 58% shares. According to preliminary estimates, its construction will cost $11.8 billion.

Azerbaijani gas will be exported to Turkey at the end of 2018 and as soon as TAP construction  is completed gas will be exported to Europe in about early 2020.—0—