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Azerbaijan launches first phase of Southern Gas Corridor

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World Pipelines,

As reported by Reuters, Azerbaijan today launched the first phase of a pipeline project to supply gas to Turkey and southern Europe, part of a European effort to reduce reliance on Russian energy supplies.

The Southern Gas Corridor pipeline project, which involved US$40 billion investment, will supply approximately 6 billion m3 of gas a year – lifted from the Shah Deniz field in Azerbaijan – to Turkey and, by 1Q20, it will supply a further 10 billion m3 a year to Europe.

The pipeline will compete with the Russian-built TurkStream pipeline that is due to become operational at the end of 2019.

Gazprom, a partner in TurkStream, now supplies around a third of Europe’s gas market, the company’s main source of revenue.

TurkStream’s first line, with a capacity for 15.75 billion m3 a year, will supply Turkish consumers. In a second phase, it will supply the same amount of gas across Turkey to southern Europe.

The rival project, the Southern Gas Corridor, could be extended if promising new Azerbaijan gasfields, such as Absheron, could be developed, officials have said.

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