Energy Security

Georgia to Receive One Billion Cubic Meters of Gas for Shah Deniz Transit

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შაჰ - დენიზის მილსადენი Photo: bp.com

The advisory council for the Southern Gas Corridor met in Baku, Azerbaijan, including the Minister of Energy of Georgia, Kakha Kaladze. The advisory council plans that the South Caucasus Pipeline, running from the Shah Deniz gas field in Azerbaijan and through Georgia to Turkey, should start transporting natural gas in 2019. Starting from 2020, Georgia will receive one billion cubic meters of gas in exchange for the transit. One billion cubic meters is 40% more than the natural gas which Georgia uses in a year.

“The timely and step-by-step development of the Southern Gas Corridor is especially important in order to avoid an energy crisis [in Georgia]. I am happy that - alongside other partners - Georgia serves as an important chain in the diversification of the European Union’s energy resources,” Energy Minister Kakha Kaladze stated.

The second round of the implementation of the Southern Gas Corridor project, involving the Shah Deniz gas field, will involve the transportation of natural gas to Italy through Azerbaijan, Georgia, Turkey, Greece, and Albania, along 3.4 thousand kilometers of pipeline. The entire cost of the project is 45 billion USD. The length of the South Caucasus Pipeline, from Azerbaijan to Turkey through Georgia, is 690 kilometers.

2 billion USD has been invested for the construction and widening of the Southern Caucasus Pipeline. 400 million USD of this has been spent in Georgia. The technical works on the pipeline should end by 2018. After the end of construction, the capacity of the pipeline will rise from 6 billion to 16 billion cubic meters.

3,200 Georgian citizens are employed on the construction of the pipeline. SOCAR (State Oil Company of Azerbaijan Republic) is one of the biggest investors of the project.

The Southern Gas Corridor project is divided in three parts:

  1. South Caucasus Pipeline (SCP) - 690 km - connects Azerbaijan and Turkey through Georgia;
  2. Trans Anatolian Natural Gas Pipeline (TANAP) - 1900 km - connects Turkey and Greece;
  3. Trans Adriatic Pipeline (TAP) - 870 km - connects Greece to Italy through Albania and the Adriatic Sea.

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