BAKU, Azerbaijan, December 23. The Southern Gas Corridor (SGC) started transportation of Azerbaijani gas to Europe on December 31, 2020. It transports gas from the Caspian Sea region to European countries through Georgia and Türkiye.
This large-scale project is aimed at diversifying energy supply routes and sources, thereby contributing to strengthening Europe’s energy security. The project’s cost totaled $33 billion, as compared to the forecast of $45 billion. Capital expenditures on the SGC project are expected to be fully reimbursed within 8-10 years.
The data obtained from the Ministry of Energy of Azerbaijan shows that the total export of natural gas from the country amounted to 22.9 billion cubic meters in the first 11 months of 2024, which is five percent more compared to the same period in 2023.
The exports to Europe totaled 11.7 billion cubic meters; nine billion cubic meters were supplied to Türkiye, and 2.2 billion cubic meters to Georgia. Through the Trans-Anatolian Natural Gas Pipeline (TANAP), 5.1 billion cubic meters of gas were transported to Türkiye.
Back on July 18, 2022, a "Memorandum of Understanding on Strategic Partnership in the field of energy between the European Union, represented by the European Commission, and the Republic of Azerbaijan" was signed between Azerbaijan and the European Union.
The sides agreed to support bilateral trade of natural gas, including exports to the European Union, via the Southern Gas Corridor, of at least 20 billion cubic meters of gas annually by 2027, in accordance with commercial viability and market demand.
Expansion of the SGC will require $20 billion.
On June 5, 2024, MVM Group signed a purchase agreement with the Southern Gas Corridor CJSC to acquire a five percent stake in the Production Sharing Agreement for the Shah Deniz offshore gas condensate field and a four percent stake in the Azerbaijan Gas Supply Company Limited, established for the marketing and sale of natural gas produced from the Shah Deniz field.
This July, the Moody's international rating agency confirmed the foreign currency senior unsecured ratings of Southern Gas Corridor CJSC at Ba1 and changed the outlook from stable to positive.
Moody's experts noted that over the past two years, Azerbaijan has signed several agreements with the European Commission and individual European economies on gas supplies.
"As a result, gas production and export volumes have significantly increased since 2022, thanks to additional opportunities from exploration projects and the upcoming expansion of the Southern Gas Corridor pipeline," the agency analysts state.
According to the European Commission, in the first quarter of 2024, Azerbaijan entered the top five largest gas exporters to Europe, accounting for seven percent (three billion cubic meters) of the EU's pipeline gas imports.
On August 5-9 of this year, scheduled maintenance work was carried out on the natural gas transportation system along the Southern Gas Corridor, specifically on the upstream section of the Trans-Adriatic Pipeline (TAP). Gas supply to Türkiye’s national gas distribution network was interrupted at the Turkgez point from July 31 to August 5 and at the TANAP entry point in Seyitgazi from August 5 to 9.
While the TAP transport system and its capacity remained fully accessible, gas flows to TAP at the Kipoi junction were reduced, affecting supplies to all connection points in Komotini, Nea Mesimvria, and Melendugno.
In August, Fitch Ratings upgraded the long-term foreign currency rating of Southern Gas Corridor CJSC's senior unsecured Eurobond issue to "BBB-" from "BB+".
According to Fitch, the rating of the two-billion-dollar Eurobond issued by SGCC, due in 2026, reflects the unconditional, non-preferential, and irrevocable guarantee for full and timely repayment provided by the Azerbaijani government to the bondholders.
Fitch considers the bond rating to be in line with Azerbaijan's long-term foreign currency issuer default rating (IDR). Fitch also noted that an upgrade of Azerbaijan's sovereign rating would lead to an upgrade of the SGCC Eurobonds.
On September 1, the State Oil Company of Azerbaijan Republic (SOCAR) began gas deliveries to Croatia through the PPD and MET Group companies.
On December 1, SOCAR began supplying gas to Slovakia's largest state-owned energy supplier, SPP, as part of a short-term pilot agreement between SOCAR and SPP, with both companies aiming to develop a longer-term energy partnership.
Thus, Slovakia became the 12th country importing Azerbaijani gas, alongside Türkiye, Georgia, Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, Croatia, and North Macedonia.
On December 10, amendments were made to the decree on certain measures related to the second stage of the exploitation of the Shah Deniz gas condensate field and other Southern Gas Corridor projects. The relevant decree was signed by President Ilham Aliyev.
According to the changes, SOCAR is tasked with ensuring effective project management through the Closed Joint Stock Company Southern Gas Corridor, in which 49 percent of shares are owned by the state and 51 percent by SOCAR.
The ownership of two percent of the state-owned shares in the authorized capital of the company will be transferred to SOCAR’s authorized capital in accordance with the Civil Code of Azerbaijan and the Securities Market Law of Azerbaijan.
Previously, SOCAR ensured effective project management by creating a closed joint stock company with a capital of 100 million USD, where 51 percent of the shares were owned by the state and 49 percent by SOCAR.
On December 18, President Ilham Aliyev signed a decree amending the decree "On certain measures related to the second stage of the exploitation of the Shah Deniz gas condensate field and other Southern Gas Corridor projects" and repealing the decree "On measures related to the transportation of Azerbaijani natural gas to the global market via the Southern Gas Corridor."
These documents were signed to improve the management of the CJSC Southern Gas Corridor.
The cancelled parts of the decree dated February 25, 2014, provided for the representation of the company in the Supervisory Board through representatives appointed by the State Commission for the full-scale development of the Shah Deniz gas condensate field, the expansion of the South Caucasus Pipeline, and the implementation of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) pipelines. The State Commission was responsible for addressing issues arising from the decree.
Furthermore, the decree dated October 29, 2013, "On measures related to the transportation of Azerbaijani natural gas to the global market via the Southern Gas Corridor," was also repealed.
It is expected that by the end of 2024, gas exports from Azerbaijan will exceed 24 billion cubic meters, compared to 23.8 billion cubic meters in 2023. Half of the expected gas production in 2024, over 48 billion cubic meters, is set to be exported.
Trans-Anatolian Natural Gas Pipeline (TANAP)
TANAP transports gas from Stage 2 of Azerbaijan’s Shah Deniz field from the Georgian-Turkish border to Türkiye’s western border. The total cost of TANAP turned out to be lower than $7 billion.
The initial capacity of TANAP is 16 billion cubic meters of gas per year, with the possibility of expanding to 31 billion cubic meters per year in the future. Around six billion cubic meters of gas are delivered to Türkiye, while the rest of the volume is supplied to Europe.
TANAP shareholders are as follows: Southern Gas Corridor CJSC – 51 percent, SOCAR Türkiye Enerji—seven percent, BOTAS – 30 percent, and bp – 12 percent.
The filling of the TANAP pipeline across Türkiye began in late January 2018.
A ceremony to launch Phase 0 of TANAP took place on June 12, 2018, in the Turkish city of Eskisehir. First commercial gas deliveries to Türkiye commenced on June 30, 2018. The opening ceremony of TANAP’s connecting with Europe took place on Nov. 30, 2019, in Ipsala town (Edirne province, Türkiye).
For expansion, it is necessary to add several additional compressor stations in order to achieve a throughput of 24 billion cubic meters per year. To achieve a capacity of 31 billion cubic meters, a total of seven compressor stations will be required.
Project status
This March, the volume of gas supplies through the Trans-Anatolian Pipeline reached 60 billion cubic meters since June 30, 2018.
Based on the results of 11 months of 2024, 5.1 billion cubic meters of gas were transported to Türkiye through TANAP.
Türkiye and Azerbaijan agreed to double the capacity of the TANAP. The pipeline's capacity may be expanded to 24 billion cubic meters of gas per year with the construction of two additional compressor stations.
The process of expansion, meaning the third phase, may take four or five years, since it will need an investment decision, necessary equipment, and construction work.
Currently, the possibility of transportation of hydrogen mixture via the pipeline is being studied. Technically, TANAP may transport a two percent hydrogen mixture.
The estimated useful life of the TANAP system is expected to last until 2062.
Trans Adriatic Pipeline (TAP)
TAP transports natural gas from the Shah Deniz field to Europe.
The length of the gas pipeline is 877 kilometers. It connects with the Trans-Anatolian Pipeline at the Turkish-Greek border at Kipoi, passes through Greece and Albania, crosses the Adriatic Sea, and makes landfall in Southern Italy.
The pipeline ensures gas supply to countries in South-East Europe through existing and prospective interconnectors. The pipeline is connected to the Greece-Bulgaria Interconnector (IGB), which began commercial operation in October 2022, supplying Caspian gas to Bulgaria, thus enhancing the energy security of another European country. The exit points of the Trans-Adriatic Pipeline (TAP) in Greece and Albania, as well as the land point in Italy, create numerous opportunities for further transportation of Azerbaijani gas to broader European markets.
As a key part of the Southern Gas Corridor, the TAP is of strategic and economic importance for Europe, providing reliable access to a new source of natural gas. TAP plays an important role in strengthening Europe's energy security, diversifying supplies, and achieving its decarbonization goals.
The TAP shareholders are bp (20 percent), SOCAR (20 percent), Snam (20 percent), and Enagas (20 percent).
Project status
Following the start of commercial operations on November 15, 2020, the Trans Adriatic Pipeline (TAP) AG confirmed on December 31, 2020, the commencement of gas flows from Azerbaijan. The first gas reached Greece and Bulgaria via the Nea Mesimvria interconnection point with DESFA, as well as Italy, via the Melendugno interconnection point. Total project cost for TAP stood at 4.5 billion euro.
As of December 22, 2024, the Trans-Adriatic Pipeline (TAP) has transported a total of 11.36 billion cubic meters of gas to Europe.
The pipeline delivered 9.44 billion cubic meters to Italy, 1.06 billion cubic meters to Greece, and 0.78 billion cubic meters to Bulgaria.
Since the start of commercial operations in late 2020 and up to December 22, 2024, TAP has transported a total of 42.36 billion cubic meters of gas to Europe. Of this volume, 35.35 billion cubic meters were supplied to Italy, 4.09 billion cubic meters to Greece, and 2.61 billion cubic meters to Bulgaria.
As of December 22, 2024, a total of 43 transmission system operators have been authorized to book capacities on the Trans-Adriatic Pipeline (TAP).
TAP has transported just under 40 billion cubic meters of gas, with 32.8 billion cubic meters delivered to Italy. This makes it the second-largest source of gas supplies to Italy, accounting for more than 15 percent of the country’s gas imports. TAP is set to increase its transportation capacity by 1.2 billion cubic meters per year starting from 2026.
In March of this year, the Albanian gas service company (AGSco) announced it had signed a contract worth 42 million lek ($443,000 or 405,000 euro) with Tech Inspect for the assessment of the Trans-Adriatic Pipeline in Albania. Tech Inspect won the contract by offering a price below the initial budget of 60.7 million lek.
The assessment is part of TAP consortium’s technical maintenance plan for the gas transport infrastructure in Albania. The contract is set to be completed by September 2025. AGSco is responsible for operating TAP in Albania, with 75 percent of the company’s shares owned by the Albanian government and the remaining 25 percent owned by the Italian Snam state company.
The TAP consortium held public consultations on proposed changes to the TAP Network Code from July 12 to August 12, 2024.
The proposed amendments to the Network Code included introducing the Within-Day product, which will enhance flexibility for shippers when booking capacities on TAP, as well as when marketing gas in the EU and the Energy Community.
In September 2024, bp and Apollo entered into an agreement for the Apollo Funds to acquire a non-controlling stake in bp Pipelines TAP Limited, which owns 20 percent of Trans Adriatic Pipeline AG. The deal is valued at $1 billion. The deal will allow BP to manage capital more effectively and achieve its divestment target of $2-3 billion in 2024. The transaction is expected to be completed in the fourth quarter of 2024, pending regulatory and partner approvals.
The TAP consortium is developing concepts for future expansion based on compressor stations with electric drive.
The initial capacity of TAP may be progressively increased to a level of at least 20 billion cubic meters per year, with future expansions achieved by adding new compressor units to existing stations and installing new, fully electrified compressor stations. Expansion possibilities are offered through regular market tests.
The 2021 market tests were concluded earlier in 2024, leading to commitments under which an additional 1.2 billion cubic meters of gas per year will be available by December 31, 2025.
TAP continues with necessary work to bring additional capacities to the market in accordance with these commitments. TAP will add one compressor unit (about 15 MW) to the existing compressor station in Kipoi (Alexandroupolis region), on the Greece-Türkiye border, and modernize existing facilities. Completion of these works will mark significant progress towards the goal of providing additional long-term capacity by the end of 2025.
TAP is capable of transporting biomethane with minimal technical adjustments within its existing infrastructure. The consortium continues to monitor the development of biomethane regulations in the countries where it operates.
TAP is actively assessing the technical feasibility of using existing infrastructure for transporting natural gas-hydrogen mixtures. A roadmap has been developed to prepare for the transportation of such mixtures in the medium- and long-term, including other renewable gases.
A 2021 preliminary study confirmed TAP’s technical potential for future transportation of natural gas-hydrogen mixtures.
Currently, the consortium is conducting pipeline material testing in an international laboratory. Results for marine pipeline materials are expected in the fourth quarter of this year. Based on these results, TAP will assess outcomes and determine the need for additional tests in 2025. In 2024, TAP also began analyzing gaps for above-ground installations, which will continue in 2025.
The TAP consortium has set the goal to achieve a gold standard in methane emissions reporting by 2026.
Methane management is a key element of TAP’s Global Emissions Management Strategy.
The central element of this strategy is the Methane Emissions Reduction Plan (MERP), which is included in the Carbon Management Plan for 2022–2025. Since the start of operations, TAP has implemented several campaigns to detect and quantify unorganized methane emissions. These campaigns, known as Leak Detection and Repair (LDAR), have been carried out at key facilities in Greece and Albania in 2021 and 2023 and in Italy in 2021, 2022, and 2023. The goal of these activities is to identify and measure unorganized emissions and develop and implement a plan to eliminate the identified issues.
All infrastructure elements exposed to unorganized emissions were carefully checked during the campaigns, including valves, connectors, pressure safety valves, vents, flow meters, and flanges.
TAP continues to work actively to reduce its carbon footprint by implementing innovative approaches and striving to become a model of transparency and accountability in methane emissions management.
TAP has already achieved the gold standard in emissions reporting for the 2024 reporting year based on data from 2023.
Baku-Tbilisi-Erzurum (South Caucasus Pipeline - SCP)
The SCP has been operational since late 2006, transporting Shah Deniz gas to Azerbaijan, Georgia, and Türkiye. The expanded section of the pipeline commenced commercial deliveries to Türkiye in June 2018 and to Europe in December 2020.
The SCP Co. shareholders are: bp (29.99 percent), SGC (21.02 percent), LUKOIL (19.99 percent), TPAO (19 percent), and NICO (10 percent).
Project status
The data obtained from bp shows that over the first three quarters of 2024, the average daily throughput of the South Caucasus Pipeline (SCP) was 61.7 million cubic meters of gas per day, compared to 60.5 million cubic meters per day during the same period in 2023.
According to data from the State Committee on Statistics of Azerbaijan for January-November, 57.2 percent of gas exports from Azerbaijan were transported via the South Caucasus Pipeline, totaling 20.79 billion cubic meters.
For the first three quarters of 2024, operating and capital expenditures for the South Caucasus Pipeline amounted to approximately $60 million and $13 million, respectively. In comparison, for the same period in 2023, operating and capital costs were $49 million and $4.5 million, respectively. These figures represent an increase of 22.4 percent in operating costs and 2.9 times in capital expenditures year-on-year.
Work is underway to increase the capacity of the South Caucasus Pipeline in Azerbaijan and Georgia to meet the goal of boosting gas exports to Europe. The pipeline's capacity will be raised to 71 million cubic meters per day from the current 61.7 million cubic meters per day.
Interconnector Greece-Bulgaria (IGB)
IGB is a gas pipeline that allows Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is connected to TAP via which gas from the Shah Deniz field is delivered to the European markets.
The pipeline’s length is 182 kilometers.
In the first stage, the pipeline capacity stands at 3 billion cubic meters of gas, of which 2.7 billion cubic meters is offered for the long-term market, and the remaining share of 0.3 billion cubic meters is for the short-term market.
In a second phase, depending on the evolution of the market, the capacity of the pipeline can be increased to 5.3 billion cubic meters of gas thanks to the addition of a compression station: 4.5 billion cubic meters of gas will be offered for the long-term market, and 0.5 billion cubic meters will be offered for the short-term market.
Bulgarian Energy Holding EAD (BEH EAD) holds 50 percent of this project, while the remaining 50 percent is owned by Greek DEPA and Italian Edison.
In January 2014, the Trans Adriatic Pipeline AG (TAP) and Interconnector Greece-Bulgaria (ICGB) signed a Memorandum of Understanding and Cooperation (MOUC) aimed at establishing the technical cooperation in order to further develop strategic infrastructure in the region.
The total investment cost of the project is estimated at around 240 million euro (excluding VAT), of which 220 million euro account for capital expenditures.
The IGB is designed to operate for 50 years.
Project status
On July 1, the independent transmission operator ICGB held its annual auction for available capacity on the Greece-Bulgaria interconnector (IGB), offering volumes for five gas years.
For the 2024/2025 gas year, ICGB offered available capacity through competitive auctions at two connection points in Greece, amounting to 1.16 billion cubic meters per year. The available capacity at the Bulgarian connection point was 1.03 billion cubic meters per year.
Traders have the option to pre-book capacity for transporting volumes arriving from the liquefied natural gas (LNG) terminal in Alexandroupolis, Greece, after its commercial launch.
Less than two years after the commencement of commercial operations, the IGB interconnector already has more than 40 registered users who will be able to participate in upcoming auctions.
In February, following a tender in accordance with the Public Procurement Law, ICGB signed a contract with a Bulgarian company for the detailed design of a gas metering station in Stara Zagora, which will allow the expansion of the Greece-Bulgaria interconnector's capacity.
ICGB plans to upgrade the gas metering station in Stara Zagora to increase its technical capacity from 3 billion cubic meters per year to 5 billion cubic meters per year.
As the next step in the ongoing capacity expansion process, ICGB, in collaboration with the Bulgarian transmission system operator, published a project proposal for the Stara Zagora entry/exit point for public consultation.
In May, the binding phase of the market test to increase the Greece-Bulgaria interconnector's capacity began.
As part of the "Vertical Gas Corridor" initiative, which involves transmission system operators from Greece, Bulgaria, Romania, Hungary, Ukraine, Moldova, and Slovakia, ICGB is focused on providing opportunities for increasing capacity to supply natural gas to Central and Southeastern Europe, as well as Ukraine and Moldova.
The interconnector is expected to operate with expanded capacity from the fourth quarter of 2025 at the Stara Zagora connection point and from the fourth quarter of 2026 at the Komotini connection point.
Physical work will begin once all relevant procedures—such as design, contractor selection, and equipment procurement—are completed.
In September, ICGB signed a connection agreement with the neighboring transmission system operator DESFA at the connection point in Komotini, Greece.
The agreement complies with all applicable regulatory requirements and sets forth a comprehensive set of provisions, conditions, and procedures to govern all operations at the connection point.
Both transmission system operators will ensure safe, reliable, and efficient compatibility at the connection point after the commercial operation starts. In the October monthly capacity auction, ICGB offered 48,044,459 kilowatt-hours per day at the connection point.
The new interconnection agreement will allow parties with reserved capacity through the LNG terminal in Alexandroupolis to transport gas via the IGB pipeline, establishing a new route for natural gas supplies to Southeastern and Central Europe.
In October, the independent transmission system operator responsible for the Greece-Bulgaria interconnector signed a memorandum of understanding on a unified approach and action plan for harmonizing gas quality requirements at connection points within the Central and Southeastern European Energy Connectivity (CESEC) region.
During the latest CESEC meeting in Budapest, transmission system operators from Bulgaria, Greece, Romania, North Macedonia, Croatia, Moldova, Ukraine, Slovenia, and Hungary committed to joint actions aimed at enhancing regional energy security.
The transmission system operators will jointly assess the impact of harmonizing gas quality requirements within the CESEC region on the relevant connection agreements by April 30, 2025, and by the same deadline, they will present an action plan that includes an evaluation of necessary steps and timelines for developing uniform gas quality requirements.
The Greece-Bulgaria interconnector has the potential to transport hydrogen mixed with natural gas, even at low concentrations, aligning with the EU's clean energy goals and supporting Bulgaria's climate commitments.
Preliminary studies confirm the possibility of mixing small volumes of hydrogen with natural gas. However, transporting larger volumes will require targeted investments in infrastructure upgrades.
ICGB is currently assessing market interest in hydrogen transport services to gauge whether there is significant demand for such services in the region.
This assessment will help adapt future projects to the European Hydrogen Backbone initiative, aimed at creating a cross-border hydrogen network across Europe. As Bulgaria and Greece are already working on joint hydrogen strategies and plan to integrate their networks, the IGB infrastructure will eventually be able to support cross-border hydrogen flow.
Last year, in Bulgaria, bio-restoration work along the IGB pipeline corridor was completed, and the company is now preparing to conduct similar work on a smaller section in Greece. This includes greening and forest restoration to minimize the long-term environmental impact. Field studies along the entire route have also begun to assess the impact on ecosystems—flora, fauna, and natural habitats.
The Greece-Bulgaria interconnector is equipped with a Simone system, allowing real-time monitoring of any leaks along the entire route. This enables ICGB teams to respond promptly to any incidents.
Additionally, each gas metering station and valve node is equipped with a system to detect potential gas leaks.
Ionian Adriatic Pipeline (IAP)
The Ionian Adriatic Pipeline can be connected to the Trans Adriatic Pipeline (TAP) to transport gas to many countries in Southeast Europe.
The total length of the pipeline is approximately 511 kilometers, of which 96 kilometers pass through Montenegro, and 37 kilometers will be laid on the seabed. The total capacity of the pipeline is five billion cubic meters per year. Albania and Bosnia and Herzegovina will receive one billion cubic meters each; Montenegro will receive 0.5 billion cubic meters, and Croatia and Central Europe will be connected to the pipeline with 2.5 billion cubic meters.
TAP has already signed memorandums of understanding and cooperation with the developers of this project, in particular with companies of Plinacro (Croatia), BH-Gas (Bosnia and Herzegovina), and Geoplin Plinovodi (Slovenia), as well as with the governments of Montenegro and Albania.
A TAP-IAP joint working group has been established that gathers regularly to synchronize the timing of both pipeline projects and coordinate the technical issues of interconnection.
Project status
Currently, the Croatian company Plinacro has received permission to construct the Ionian-Adriatic Pipeline (IAP) from Dugopolje to Ploče, as well as permission for the section at the Ploče-Montenegro border.
The development of the main project and the issuance of construction permits for the Ploče-Montenegro border section will be coordinated with partners from Albania and Montenegro, who are handling environmental impact assessment procedures and pipeline design.
Croatia is working on securing financing for the Ionian-Adriatic Pipeline.
Positive feedback has been received from the Montenegrin government, and Croatia hopes to continue the implementation of the IAP project. Croatia has also held negotiations with Bosnia and Herzegovina, while Plinacro prepared all necessary permits for the Croatian section of the IAP.
Ighdir-Nakhchivan gas pipeline
Azerbaijan and Türkiye signed a memorandum of understanding on the Ighdir-Nakhchivan gas pipeline on December 15, 2020. The project envisaged cooperation between Azerbaijan’s state oil company SOCAR and Türkiye’s BOTAS.
The Igdir-Nakhchivan pipeline will not only allow for the diversification of Nakhchivan's gas supply but also eliminate its dependence on a single source. The project is among the priority initiatives outlined in the "State Program for the Socio-Economic Development of the Nakhchivan Autonomous Republic for 2023-2027," adopted on June 5 of this year.
The pipeline stretches 97.5 kilometers from Igdir to the Sadarak district, including a 17.5-kilometer Azerbaijani section and an 80-kilometer Turkish section. The pipeline is capable of transporting 2 million cubic meters of gas per day and 730 million cubic meters annually. This will fully meet Nakhchivan's gas needs.
Furthermore, the pipeline's capacity can be more than doubled in the future.
Project status
Completion work is in full swing at the base station of the Igdir-Nakhchivan gas pipeline.
To provide the station with electricity, a new medium voltage power transmission line 400 meters long was laid, and 1 new transformer point with a capacity of 250 kilowatts was installed.
Trans-Caspian Gas Pipeline
Turkmenistan is studying the possibility of delivering its energy resources to the European market. To this end, it promotes the project for construction of the Trans-Caspian Gas Pipeline to the coast of Azerbaijan, from where the Turkmen gas can be delivered to Türkiye and further to Europe.
The Trans-Caspian Gas Pipeline project may be implemented as part of the Southern Gas Corridor.
Project status
Currently, there are no direct agreements on the implementation of the Trans-Caspian Gas Pipeline project.
Turkmenistan has expressed readiness to supply 40 billion cubic meters annually to Europe, 10 billion cubic meters of which can be provided by the Petronas company, which operates in the Turkmen sector of the Caspian Sea. The remaining volume can be provided by the 800-km East-West pipeline, which originates from the Galkynysh field and finishes off the coast of the Caspian Sea.
In April 2015, a declaration on the development of energy cooperation was signed in Ashgabat following the multilateral talks on the Trans-Caspian Gas Pipeline project between Turkmenistan, Azerbaijan, Türkiye, and the EU.
Moreover, in order to consider the complex of organizational, legal, commercial, technical, and other issues related to gas supply from Turkmenistan to Europe, the parties agreed to create a working group at the level of deputy ministers in charge of energy issues of Turkmenistan, Azerbaijan, Türkiye, and the EU.
The European Commission proposed that Turkmenistan develop a feasibility study for Turkmen gas supplies. The EU companies need the necessary guarantees from Turkmenistan for serious participation in this project.
Solidarity Ring (STRING)
On April 25, 2023, a memorandum of understanding was signed in Sofia to promote cooperation between the "Bulgargaz" (Bulgaria), Transgaz (Romania), FGSZ (Hungary), EURSTREAM (Slovakia), and SOCAR (Azerbaijan) companies.
Additional gas supplies will be transported through the upgraded gas transmission systems of Bulgaria, Romania, Hungary, and Slovakia—referred to as the Solidarity Ring.
The total estimated investment cost of the Solidarity Ring initiative is around 730 million euro.
The initiative could be implemented by the end of 2026 with the necessary financial support from the EU. The Solidarity Ring (STRING) can transport between five and 9.5 billion cubic meters of gas per year.
Azerbaijan plans to send an additional 5 billion cubic meters of gas to the Balkan countries through the Solidarity Ring.
Azerbaijan-Georgia-Romania Interconnector (AGRI)
The AGRI project envisages the transportation of Azerbaijani gas to the Black Sea coast of Georgia via gas pipelines. Azerbaijani gas delivered to Georgia's Black Sea coast will be liquefied at a special terminal, and following this, it will be delivered in tankers to a terminal at the Romanian port of Constanta. Further, it will be brought to the gaseous state and sent via Romanian gas infrastructure for meeting the demands of Romania and other European countries.
The project’s cost is estimated at 1.2-4.5 billion euro depending on the terminals’ capacity, which can vary between two and eight billion cubic meters of gas per year.
The participants of the AGRI project are SOCAR, Georgia's Oil and Gas Corporation, as well as MVM (Hungary) and Romgaz (Romania). The parties established the SC AGRI LNG Project Company SRL with the purpose of developing the Feasibility Study.
Project status
Azerbaijan, Georgia, and Romania signed on June 24, 2015, a joint declaration on supporting the development of the Azerbaijan-Georgia-Romania Interconnector project.
UK Penspen engineering company presented to shareholders of AGRI the final version of the feasibility study (FS) of the project in late 2015.
Turkmenistan is highly interested in the Azerbaijan-Georgia-Romania Interconnector project. To supply this project with Turkmen gas, it is necessary to build a separate gas pipeline along the Caspian seabed to the coast of Azerbaijan or to deliver liquefied gas through the sea via tankers.
It is expected that the AGRI gas pipeline system project (Azerbaijan-Georgia-Romania Interconnector), which provides for the transportation of Azerbaijani gas to Europe, will be implemented after 2024-2026.
Presently, the shareholders of the AGRI LNG project company are discussing issues related to the further development and implementation of the AGRI project, presumably after 2024-2026, when the second stage of development of Azerbaijan’s Shah Deniz field and other fields will be completed.
Azerbaijan-Georgia-Romania The interconnector project is currently frozen.
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