Azerikimya

Southern Gaz Corridor

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The Southern Gas Corridor (SGC) project aims to increase and diversify European energy supply by transporting Azerbaijani gas produced within the second phase of the Shah Deniz Gas Condensate Field Development Project to Türkiye and the European Union. The corridor also has the potential to deliver natural gas from other Azerbaijani fields and third-party sources to global markets in the future.
The SGC, recognized as one of the EU’s priority energy projects, consists of four main segments: Shah Deniz-2, South Caucasus Pipeline Expansion (SCPX), Trans-Anatolian Pipeline (TANAP), and Trans-Adriatic Pipeline (TAP).
The foundation of the SGC was laid on September 20, 2014, with the inauguration in Baku on May 29, 2018. The TANAP section to Eskishehir, Türkiye, was commissioned on June 12, 2018, and the first commercial gas from Shah Deniz 2 was delivered to Türkiye via TANAP on June 30, 2018. The European connection of TANAP was inaugurated on November 30, 2019, and with the commissioning of TAP on December 31, 2020, Azerbaijani gas began flowing to Europe for the first time. This $33-billion megaproject linking the Caspian region to South-East Europe contributes significantly to the economic development of both Azerbaijan and transit countries.
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Shah Deniz 2 (SD2) represents one of the world’s largest and most complex gas projects, including the first underwater infrastructure in the Caspian Sea. SD2 added 16 billion m³ of natural gas and 105,000 bbl of condensate to SD1’s production, increasing daily condensate capacity to 60,000 bbl. On September 19, 2013, the Shah Deniz consortium signed gas sale agreements with nine European companies, and the Final Investment Decision was made on December 17, 2013.
The project involves:
  • Construction of two offshore platforms connected by a bridge
  • Drilling of 26 gas production wells using a semi-submersible rig
  • Laying 500 km of subsea pipelines connecting the wells to the onshore terminal
  • Upgrading offshore construction vessels
  • Expansion of Sangachal Terminal for new gas processing and compression facilities
Shareholders:
  • bp – 29.99% (operator)
  • Southern Gas Corridor CJSC – 21.02%
  • Lukoil – 19.99%
  • NICO – 10%
  • TPAO – 19%
  • The South Caucasus Pipeline (SCP), 692 km in length (Azerbaijan – 443 km; Georgia – 249 km), was constructed to transport Shah Deniz gas to the Georgia-Türkiye border. Its annual capacity is 7.41 billion m³, and it was built along the same corridor as the Baku-Tbilisi-Ceyhan Pipeline to minimize environmental impact.
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The South Caucasus Pipeline Expansion (SCPX) added a 48-inch, 489 km pipeline with two new compressor stations, increasing total transportation capacity to 24.04 billion m³, with potential to expand to 34 billion m³ annually. SCPX was commissioned on June 30, 2018.
The Trans-Anatolian Pipeline (TANAP), stretching 1,850 km, starts from the Ardahan region on the Türkiye-Georgian border, passes through 20 cities, 69 districts, and 604 villages, and connects with TAP in Ipsala, Edirne on the Türkiye-Greece border. Initial capacity is 16.2 billion m³ annually, with potential to increase to 31 billion m³. Total investment reached $6.3 billion, saving 46% of initial projected costs.
  • Shareholders:
  • Southern Gas Corridor CJSC – 51%
  • BOTAŞ – 30%
  • bp – 12%
  • Azerikimya Transportation (Midstream) Turkey Enerji A.Ş. – 7%
The Trans-Adriatic Pipeline (TAP) delivers Azerbaijani gas via Greece and Albania across the Adriatic Sea to southern Italy. It spans 880.8 km (Greece – 551.5 km; Albania – 215.9 km; Adriatic Sea – 105 km; Italy – 8.4 km), with an initial capacity of 10.5 billion m³ annually, expandable to 20 billion m³. TAP was commissioned on December 31, 2020, with Phase 1 investment totaling approximately €4.5 billion.
  • Shareholders:
  • Southern Gas Corridor CJSC – 20%
  • bp – 20%
  • Snam – 20%
  • Fluxys – 20%
  • Enagas – 20%
The Southern Gas Corridor not only strengthens Europe’s energy security but also diversifies supply routes, supports economic development in Azerbaijan and transit countries, and demonstrates a model for sustainable, large-scale energy infrastructure projects.