TODAY.AZ / Politics

President Aliyev: Southern Gas Corridor project of energy security [UPDATE]

12 February 2021 [13:57] - TODAY.AZ

By Azernews


By Vafa Ismayilova

President Ilham Aliyev has described the Southern Gas Corridor project, which will take natural gas from Azerbaijan’s Shah Deniz gas field to European markets, as a project of energy security and energy diversification.

He made the remarks at the Baku-hosted seventh Southen Gas Corridor Advisory Council ministerial held on February 11. 

The Southern Gas Corridor is a European Union project that consists of South Caucasus Pipeline, Trans-Anatolian Pipeline and Trans-Adriatic Pipeline.

Energy security project

Addressing the meeting, Aliyev said: "The Southern Gas Corridor project really is a project of energy security, of energy diversification. Energy security today is a matter of national security of all the countries and energy diversification also is important for consumers as well as for producers. Therefore, I think we have a very unique format of cooperation, very properly measured balance of interests, where interests of producer Azerbaijan, transitors, consumers coincide. And these make it possible to implement these projects which for some seemed to be not very realistic.”

Aliyev said that the Southern Gas Corridor project is unique by many parameters, for instance, the length 3500 km.

“It unites seven countries and without close cooperation between these countries, this project wouldn’t have been possible to implement. It crosses very difficult terrain like 2100 m high mountains, and more than 100 km of the pipeline goes under the Adriatic Sea.”

Aliyev noted that the project fully complied with the highest ecological norms.

"That was one of the major pre-condition while we were planning and implementing this project. The cost of the project, first initially it was planned to be $ 44.6 billion, but due to efficiency in management and proper planning, the cost was reduced to $ 33 billion. This is also a remarkable achievement," the president said.

Aliyev expressed his optimism about an increase in the number of those joining the project, that is 18 countries, 19 companies and five leading financial institutions.

"We work as one team. And I think this is the main reason for our success. Of course, first of all, I would like to congratulate all of us with respect to the completion of the construction of the Southern Gas Corridor. The last day of the last year was remarkable. The completion of the TAP, the last segment of the Southern Gas Corridor is a historical achievement. And I am sure that our joint activity will continue," the head of state added.

He thanked all partners and the governments of Georgia, Turkey, Bulgaria, Greece, Albania and Italy involved in the mega project's construction of the mega project.

Western partners

"I would like to express gratitude to the European Commission because the European Commission and Azerbaijan signed a Joint Declaration on Southern Gas Corridor ten years ago in Baku and that was actually the starting point for our activity... I would like to express gratitude to the governments of the United States and the United Kingdom, the governments of our two partners always supported all our endeavours and provided very strong support during the implementation of different mega projects which Azerbaijan with its neighbours and partners successfully completed before," the president added.

BP’s role

Aliyev underlined that the project's fulfillment wouldn’t have been possible without a strong commitment from companies and stressed the special importance of strategic cooperation between Azerbaijan and BP.

"BP is our strategic partner, the company which operates in Azerbaijan already for 27 years, and with many more decades to come. BP is a partner to all major oil and gas projects including transportation projects in Azerbaijan," the head of state said.

He also thanked the World Bank, the EBRD, the Asian Development Bank, the European Investment Bank and the Asian Infrastructure and Investment Bank for their great contribution to achieving tremendous progress to fulfill the project.

Aliyev stressed Azerbaijan's substantial contribution to the project.

"I would like to say that Azerbaijan made a substantial commitment at the amount of 10 billion US dollars and we participate in all four segments of the Southern Gas Corridor, including Shah Deniz, South Caucasus pipeline, TANAP and TAP. So, all this is a reflection of our teamwork," he said.

More gas transports to Europe

Aliyev said that against the background of great achievements, the parties need to look into the future. 

"As far as Azerbaijan is concerned, we will continue to develop our energy resources. We have very promising prospects from the fields which are now in the process of exploration, and production. A particularly big field containing 400 billion cubic meters of gas is a field named Babak. Absheron gas condensate field, which I hope production will start next year, contains a minimum of 350 billion cubic meters of natural gas and the Umid field at least 200 billion cubic meters of natural gas. So, these are the fields with proven reserves which will contribute more to the production of natural gas from the Azerbaijani sector of the Caspian Sea," he added.

The head of state stressed there are some other projects which are now in the phase of exploration.

"We hope to see new discoveries in the coming years. Therefore, that will all be helpful in order to increase the output through our diversified chain of the oil and gas pipelines," he added.

Speaking about the future joint plans, Aliyev said that the completion of TAP enables the implementation of the Ionian Adriatic Pipeline.

"We already signed memoranda of understanding with the countries of the Western Balkans. The Ionian Adriatic Pipeline when implemented will allow us to diversify our supply roots and at the same time, will provide additional opportunities for countries of the Western Balkans. When we talk about diversification, our project provides diversification not only of roots but also diversification of sources. And this is very important. This is a real diversification.”

Aliyev added that gas from Azerbaijan is a new reliable and long-lasting source for Europe.

"Our proven gas reserves were considered to be at the level of 2.6 trillion cubic meters but now the new information shows that it will be much more. And if we add here the great potential of the project which is called deep gas from ACG [Azari-Chirag-Gunashli], then the full picture of our potential will be more visible," the president said.

Reliable transitor

He briefed the participants about the signing of the Azerbaijani-Turkmen memorandum of understanding on the Dostlug field. 

"This is a very remarkable event in the area of Caspian because this January this memorandum was signed and I am sure we will soon agree on all the terms and sign an agreement. That will be also very helpful for future energy cooperation in the Caspian Sea and beyond. And of course, I would like to say that Azerbaijan has already become a reliable transitor of energy resources from eastern shores of the Caspian Sea," Aliyev said.

The head of state stressed that for many years, Azerbaijan provides important transportation roots for its partners on the eastern part of the Caspian, through the Baku-Tbilisi-Ceyhan pipeline and through its railroad system.

"Azerbaijan demonstrated itself as a reliable transitor. One more point I would like to bring to your attention is our plans with respect to renewable sources of energy," he added.

Renewables

Aliyev said that Azerbaijan is now in the active phase of cooperation with leading energy companies in the world in the sphere of renewable energy sources.

"With two of them, we already signed necessary documents for construction of two, one solar and one wind power stations of the total capacity of 440 megawatts. These are projects which will be implemented 100 percent by foreign investors. Azerbaijan’s investment climate is very positive.”

The president stressed that the attraction of investments in renewable energy is in line with Azerbaijan's renewable energy sources strategy and potential.

"After the liberation of the occupied territories, we know that there is a great discovery on the liberated territories for solar and wind energy production, as well as hydro-electric generation. Therefore, I would like to invite companies from your countries to be our partners. I already officially announced the liberated territories as the territories which will be supplied with green energy. We are already working on the master plan using a great potential of water, sun and wind. We will, I am sure, implement this project, as well as another project which is called smart city development. For all liberated territories, this project is now already in the pipeline. Taking into account the devastations and destructions which Armenia committed on the occupied territories which we liberated and everything is destroyed, of course, it’s a big challenge," Aliyev said.

He said that Azerbaijan is committed to implementing its plans in this sphere in a short period of time.

"I think that having big energy potential like oil and gas being an exporter of crude oil, oil products, natural gas, and also electric energy Azerbaijan must demonstrate responsibility and actively invest in the green energy. That’s what we are doing, and these are our plans, I am sure they will be implemented. I just wanted to inform our partners and friends that these opportunities also exist. Of course, commemorating the completion of the Southern Gas Corridor, as I said before, we need to look to the future to implement our new plans, new ideas," the head of state noted.

The meeting was attended by ministers and other high-level representatives from 18 countries, including Azerbaijan, heads of five leading international financial institutions and 18 major companies engaged in the project.





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