The supply of gas from the Shah Deniz field to the European Union has commenced. It is a big step forward for energy security, the Prime Minister of Georgia, Giorgi Gakharia, said on Tuesday.
According to the PM’s press office, the corridor comprises the development of South Caucasus and Turkey gas routes for the natural gas supply from the region to Europe.
The Prime Minister noted that the Southern Corridor helps to compensate for the reduction in local gas production in Europe.
“Under the current intergovernmental and host country agreements and relevant purchase agreements, Georgia will receive gas from the South Caucasus pipeline project at discounted prices, which is at least two times less than the market price. An optional gas contract allows annual extraction of up to 5% of gas volume. The agreement is valid until 2066. An additional gas contract is valid till 2026, and Georgia will receive up to 500 million cubic meters of gas annually under this contract,” the press service of the Prime Minister informed.
The political effect that followed the development of the Southern Gas Corridor is much more crucial, Giorgi Gakharia believes.
“Till today, Georgia was only a gas transit country of regional importance. It was conducting transit of Azerbaijani gas to Turkey and Russian gas to Armenia. Now it has become an international player. From now on, gas transported on the Georgian territory will play an important role in diversifying international, mainly EU, energy markets, and increasing supply security,” Gakharia elaborated.
The Southern Gas Corridor consists of three pipelines, the South Caucasus Pipeline extension (SCPX), the Trans-Anatolian Pipeline (TANAP), and the Trans-Adriatic Pipeline (TAP). “Georgian PM Giorgi Gakharia, Turkish President Recep Tayyip Erdogan and Azerbaijani President Ilham Aliyev opened one of the most important components of the Southern Gas Corridor, the Trans-Anatolian Pipeline Project (TANAP) last year,” Gakharia said.