SGC Advisory Council considers prospects of delivering Azerbaijani gas to Europe
The European community kept its eyes on Azerbaijan on February 15 as Baku was hosting the fourth Ministerial Meeting of the Southern Gas Corridor (SGC) Advisory Council.
Energy ministers from the Southern Gas Corridor memberstates, representatives of a number of international organizations, as well as the EU delegation led by European Commission Vice-President for Energy Union, co-chair of SGC Advisory Council Maros Sefcovic gathered at the Heydar Aliyev Center in Baku to discuss the progress on the Southern Gas Corridor (SGC), the largest energy project the EU is currently pursuing.
Romania and Turkmenistan were represented at the meeting for the first time. Romania was represented by State Secretary within the Ministry of Energy Iulian-Robert Tudorache, while Yagshygeldi Kakayev, advisor to the Turkmen president, attended the meeting as a representative of the Turkmen side.
Heads of the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP) consortiums - Saltuk Duzyol and Luca Schieppati, as well as companies with equity share in consortiums, including BP, Snam, Enagas, Axpo and Fluxys, took part in the meeting.
In addition, representatives of such international financial institutions as the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the International Finance Corporation, KfW Development Bank, the World Bank and the Multilateral Investment Guarantee Agency attended the high-level event.
President Ilham Aliyev made a speech at the meeting.
The meeting was continued with plenary sessions and round tables.
President Aliyev held a series of bilateral meetings with a number of officials such as Maros Sefcovic, Turkish Minister of Energy and Natural Resources Berat Albayrak, first deputy prime minister, Minister of Economy and Sustainable Development of Georgia Dimitri Kumsishvili and Italy's Deputy Minister of Economic Development Ivan Scalfarotto.
In the course of the bilateral meeting with Albayrak, both sides noted the successful development of friendly and brotherly relations in a variety of areas between the two countries.
Jointly implemented by Azerbaijan and Turkey, a number of largescale projects, including the TANAP, TAP, Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum, and Baku-Tbilisi-Kars was hailed at the meeting.
President Aliyev recalled his meeting with Berat Albayrak during the ceremony of the extension of the Contract of the Century last September, saying the execution of the TANAP project is going to be completed.
The head of state noted that the production of gas from Shah Deniz 2 field and its piping will soon be started.
Albayrak emphasized the importance of the extension of the term of the Contract of the Century. He also noted the importance of the 4th Ministerial Meeting of the Southern Gas Corridor Advisory Council.
The minister went on to say that testing got underway as part of the execution of the TANAP project last month.
During the meeting with Maros Sefcovic, President Aliyev thanked him for attending the 4th Ministerial Meeting of the SGC Advisory Council and for his warm words at the event. The head of state described the meeting as a new stage in the development of the Southern Gas Corridor project.
President Aliyev thanked Sefcovic for supporting the implementation of the Southern Gas Corridor, as well as for the European Investment Bank's financial support for the project.
Sefcovic, in turn, praised the significant progress in the implementation of the project.
During press conference held following the Southern Gas Corridor Advisory Council meeting, Maros Sefcovic noted that Romania has expressed interest in participating in the Southern Gas Corridor project.
He also stressed that significant progress has been achieved in the implementation of the Southern Gas Corridor projects.
The European Union continues to seek ways to connect Turkmenistan to the Southern Gas Corridor project, Sefcovic added, voicing appreciation of Azerbaijan’s role in studying the ways of connecting Turkmenistan to the Corridor.
Speaking at the press conference Azerbaijani Energy Minister Parviz Shahbazov said that a number of important decisions were made during the Fourth Ministerial Meeting.
The minister said the meeting participants discussed issues related to implementation of the SGC project over the past year and the work to be carried out this year, and a number of important decisions were made.
Shahbazov said all the components of the SGC project were separately discussed in details by the meeting participants.
“Implementation of all the components of the SGC project is at the satisfactory level and is carried out in line with the schedule according to which Azerbaijani gas will be supplied to Turkey in mid-2018 and to Europe in 2020,” he noted.
Acting Special Envoy and Coordinator for International Energy Affairs of the US Department of State Sue Saarnio addressing the press conference said that the U.S. is impressed with the progress in implementation of the SGC project.
“We have always been a longstanding supporter of European energy security efforts,” she said. “Europe's efforts to diversify its energy supply are critical to a strong Europe. Strong Europe is a good partner for the U.S. in combating challenges.”
“We are really impressed to hear the reports today on the progress on the Southern Gas Corridor and also of the EU interconnector projects,” Saarnio added. “As a result of that Europe, as a whole, will be more secure and be a strong partner of the U.S.”
Following the fourth ministerial meeting as part of the Southern Gas Corridor Advisory Council meeting in Baku, a letter of intent has been signed between SOCAR Balkans and Albania’s Albgaz companies.
The first meeting of the Southern Gas Corridor Advisory Council was held on February 12, 2015, the second meeting on February 29, 2016, and the third meeting on February 23, 2017.
The Southern Gas Corridor, worth $41.5 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas supplies. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of Stage 2 of the Shah Deniz development, gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.
The first gas within the Shah Deniz-2 project will be delivered to Turkey in 2018, and to Europe in 2019.
In general, the project initiated by Azerbaijan, drew the attention of the whole world. The European dream about getting Azerbaijani gas as soon as possible will allow longawaited diversification and an alternative to the current sources of gas supplies.