BAKU, Azerbaijan, June 1. Southern Gas Corridor remains an important part of Europe’s diversification architecture, Director of the Energy Platform Task Force, Directorate-General for Energy at the European Commission, Cristina Lobillo Borrero said in an exclusive interview with Trend ahead of the Baku Energy Week.
"It has provided reliable gas supplies to the EU and has contributed to reducing the EU’s dependence on Russian gas. Looking ahead, gas imports from Azerbaijan through the Southern Gas Corridor (SGC) will continue to play an important role, especially in the context of geopolitical volatility and the EU’s objective to fully phase out Russian energy imports. The EU remains a reliable trade partner for Azerbaijani gas, and Azerbaijani supplies contribute to strengthening security of supply during the current Middle East crisis,” she said.
On expansion, Borrero said the key principle is that further capacity increases should be market-based.
“The first level of TAP expansion, adding 1.2 bcm per year, has already taken place. Further expansions need to be justified by market prices, demand and regular market tests. This is important both for commercial credibility and for consistency with Europe’s evolving gas-demand outlook.
There is political recognition of the SGC’s role in diversification, but the EU can no longer fund fossil fuels infrastructure from its budget. Therefore, any further expansion should be underpinned by commercial investment and, where appropriate, potential financing from international financial institutions. The focus should be on infrastructure that strengthens security of supply without creating new long-term dependencies," Borrero explained.
