The Southern Gas Corridor (SGC) project will stay active within 50-60 years. Incomes from the SGC and Shah Deniz Phase 2 will, possibly, exceed their costs by 2028-2030, Azerbaijani Energy Minister Natig Aliyev said in his interview to Natural Gas Europe.
He said each of the companies involved in the projects has its own assessment of their profitability.
“Azerbaijani considers Shah Deniz, Trans Anadolu gas pipeline (TANAP) and Trans Adriatic Pipeline (TAP) as a single project. The costs for the Shah Deniz Phase 2 are estimated at $25 billion and costs for SGC - $20 billion. Gas export to Turkey is planned to begin in 2018 and to Europe – in 2020. Incomes from the Shah Deniz-2 will be derived before gas is exported to Europe. According to the production sharing agreement (PSA), part of the costs will be paid back till 2020. On the other hand, in addition to 16 bcm of gas from the Shah Deniz-2, over 29 million barrels of condensate a year will be produced, which will be exported via the Baku-Tbilisi-Ceyhan (BTC). Annual gas and condensate production from the Shah Deniz-1 totals about 10 bcm and 16.4 million barrels,” said Aliyev.
* SGC is among the priority projects for the EU and it envisages transportation of 10 bcm of Azerbaijani gas to Europe and 6 bcm of gas to Turkey.—0—
Economics
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