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56-648: It is considered to be a founding link for the Southern Gas Corridor , aiming to bring additional and alternative natural gas volumes to EU member countries. The Agreement on “the Exploration, Development, and Production Sharing (PSA)” for Shah Deniz area was signed between SOCAR and some oil companies of foreign countries on June 4, 1996. Azerbaijani Parliament confirmed the document of “the Exploration, Development, and Production Sharing (PSA)” on October 4, 1996. The Shah Deniz gas and condensate field

112-413: A dozen proposals to the final competing projects, TAP and Nabucco . Nine companies agreed to sign a gas sales agreement (GSA) with the consortium: Out of total 10 bcm intended for Europe, 1 bcm will go to Bulgaria and Greece and the rest will go to buyers in other countries, mainly Italy. The project will include two additional bridge-linked offshore gas platforms, undersea wells, and an expansion of

168-495: A few weeks, due to technical issues. The shutdown forced Georgia to buy emergency gas supplies from Russia at a market price. Georgia hopes that production from Shah Deniz will allow the country to decrease its energy — and political — dependence on Russia. By July 2007, the Shah Deniz gas plant at Sangachal Terminal was fully operational, with all buyers of Shah Deniz taking gas. Shah Deniz-2 discussions started in 2008 with

224-683: A further significant supply source for the EU. There have been numerous conferences revolving around the project. On 8 May 2009, the summit "Southern Corridor – New Silk Road" was held in Prague , addressing the purpose of the corridor. In 2015, a Southern Gas Corridor Conference was hosted at the University of Houston, Texas. Representatives from gas companies, consulates, and other organizational authorities participated in developing relations and calculating productions. The countries that were represented at

280-655: A package with the EBRD and commercial banks), the Asian Development Bank (ADB) approved in December 2016 an additional US$ 1 billion for the Shah Deniz II gas field. The World Bank approved two US$ 400 million loans for Turkey and Azerbaijan for TANAP. The World Bank's Multilateral Investment Guarantee Agency (MIGA) approved a guarantee of up to US$ 950 million for TANAP against the risk of non-honoring of

336-646: A positive image in Europe to gain support for the Southern Gas Corridor. The corridor is a main reason for the laundering and can explain the government's heavy lobbying at the European level. As a result of the scandal, more than 80 human right activists and opposing politicians were arrested and jailed in Azerbaijan. The Southern Gas Corridor received mixed reactions from the public, and has been

392-557: A sovereign financial obligation. The Asian Infrastructure Investment Bank (AIIB) approved a US$ 600 million loan for TANAP at an unannounced extraordinary virtual Board meeting on 21 December. (The AIIB's project summary also states the combined EIB and EBRD support for TANAP as US$ 2.1 billion, which suggests that, like the EIB, the EBRD is considering EUR 1 billion for TANAP.) Currently, the Azerbaijani government (Ministry of Economy of

448-626: A taxpayer-funded 60-kilometre long interconnector which had to be built to link the TAP's Italian terminal in Melendugno to Italy's national gas network near the industrial port of Brindisi . In 2016, the Apulia Region governor Michele Emiliano told an Al Jazeera English crew that he could not understand why an alternative landing point to San Foca beach, closer to the Brindisi industrial area,

504-595: Is a natural gas pipeline operational since 2020, running from Greece through Albania and the Adriatic Sea to Italy . It is the final section of the Southern Gas Corridor originating in Azerbaijan . As of 2022 , capacity is 10 bcm per year. The natural gas originates in the second stage of the Shah Deniz ( Azerbaijan ) gas field development in the Azerbaijani section of Caspian Sea flowing through

560-599: Is a reason for concern regarding the reliance on the country's imports. The initiative was proposed in the European Commission's Communication "Second Strategic Energy Review – An EU Energy Security and Solidarity Action Plan" (COM/2008/781) in 2008. The European Union identified a number of partner countries for this initiative, such as Azerbaijan , Turkey , Georgia , Turkmenistan , Kazakhstan , Iraq , Egypt and Mashreq countries. Uzbekistan and Iran should represent, when political conditions permit,

616-454: Is delivered to Italy, 1 billion cubic metres (35 billion cubic feet) to Greece, and 1 billion cubic metres (35 billion cubic feet) to Bulgaria. It will be expanded up to 20 billion cubic metres (710 billion cubic feet). It uses 48-inch (1,200 mm) pipes for pressure of 95 bars (9,500 kPa), 1378 psi, on the onshore section and 36-inch (910 mm) pipes for pressure of 145 bars (14,500 kPa), 2103 psi, on

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672-516: Is estimated US$ 35 billion. The main supply source would be the Shah Deniz gas field , located in the Caspian Sea . The European Union is dependent on other countries' supply sources of energy; in 2017 around 54% of the EU's gross inland energy consumption came from imported sources. Russia has been the main supplier, despite its recent decline, in natural gas, coal and crude oil for a number of years. Russia's dispute with transit countries

728-645: The Caspian Sea to Turkey , through Georgia . The associated condensate is mixed with the oil from the ACG field and is transported to Turkey through Georgia , along the Baku–Tbilisi–Ceyhan pipeline . The Shah Deniz scheme started to produce gas at the end of December 2006, three months later than expected, and was forced to close briefly in January 2007. Azerbaijan announced that the field had resumed output only to admit that it had been shut down once more, for

784-544: The Council of Europe . In these reports, such activities of that Armenian connection are regarded as unilateral and biased hiding private interests of the network behind the purview of the defense of human rights, but the activity of the ESISC itself is characterized as a part of the Azerbaijani propaganda (see European strategic intelligence and security center ). Over ten European media organizations have jointly investigated

840-734: The European Commission for a natural gas supply route from Caspian and Middle Eastern regions to Europe, proposed in 2008. The goal of the Southern Gas Corridor is to reduce Europe's dependency on Russian gas and add diverse sources of energy supply. The route from Azerbaijan to Europe consists of the South Caucasus Pipeline , the Trans-Anatolian Pipeline , and the Trans Adriatic Pipeline . The total investment of this route

896-584: The International Energy Agency , "no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2 °C goal". The European Investment Bank has stated its commitment to control climate change, yet is still aiming to finance the corridor. With the SGC, one of the goals on the EU is to diversify natural gas supply routes and reduce dependency from Russia. Russia supplied about one third of

952-494: The South Caucasus Pipeline and the Trans Anatolian Pipeline (TANAP) . The TAP has been supported by European institutions and seen as a "Project of Common Interest" to enhance energy security and diversify gas supplies for European markets. It is operated by a Swiss joint venture and owned by BP (20%), SOCAR (20%), Snam (20%), Fluxys (20%) and Enagás (20%). The Trans Adriatic Pipeline project

1008-449: The Azerbaijani government as repressive or authoritarian, and also assert activists and journalists are regularly arrested on false charges and imprisoned. The International Federation for Human Rights (FIDH) wrote in 2015, that "for more than a decade Azerbaijan has made shameless use of caviar diplomacy to charm European governments, its most important oil and gas clients". The CEE BankWatch warns that "Developing Shah Deniz stage 2 and

1064-464: The Azerbaijani government, and have accused officials of laundering money to the United Kingdom. Dubbed the " Azerbaijani Laundromat ", this scheme allegedly consisted of sending 2.5 billion euros to European politician and Azerbaijani elites; the money was also used to purchase luxury goods. One of the reasons why the laundering took place was because the Azerbaijani government needed to keep

1120-618: The EU gas consumption in 2013, mainly through Gazprom . However, the European Bank for Reconstruction and Development (EBRD) is to lend US$ 200 million to Lukoil to develop the Shah Deniz gas field in Azerbaijan. The Russian company Lukoil , whose CEO is an Azerbaijani businessman Vagit Alekperov , owns 10% of the field. Building SGC, European countries and companies support gas export from Azerbaijan and contribute to finance Azerbaijan's government. Many critics, watchdog groups and Non-governmental organizations (NGOs) have criticized

1176-632: The EU's largest fossil fuel projects, the Trans Adriatic Pipeline. The loan approval followed the release of a study demonstrating that the Southern Gas Corridor could be as emissions-intensive or even more so than coal power. A document obtained via a freedom of information request revealed that the European Commissioner for Energy and Climate Action and the Vice President of the European Commission in charge of

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1232-653: The Energy Union had been lobbying the EIB to green-light loans to TAP and the eastern section of the Southern Gas Corridor, the Trans Anatolian Pipeline. The European Bank for Reconstruction and Development (EBRD) already approved three loans for the Shah Deniz stage 2 gas field (US$ 200 million, US$ 250 million and US$ 100 million) as well as a US$ 500 million loan for TANAP, and stated its financial support to TAP could amount to EUR 1.2 billion. On top of US$ 250 million for Shah Deniz stage II (as part of

1288-928: The Greek authorities to build a section of the pipeline from Thessaloniki to the Greek-Albanian border. In January 2009, the TAP carried out a marine survey in the Adriatic Sea to verify the offshore route. A route assessment survey in Albania started in July 2009. In March 2009, an intergovernmental agreement between Italy and Albania on energy cooperation mentioned TAP as a project of common interest for both countries. In January 2010, TAP opened country offices in Greece, Albania and Italy. In March 2010, TAP submitted an application to Italian authorities for inclusion into

1344-550: The Italian gas network. On 20 May 2010, it was announced that E.ON had become a partner in the project. The deal was closed on 7 July 2010. In November 2010, TAP started a route refinement survey in northern Greece in preparation for the environmental impact assessment . On 7 September 2011, the company submitted an EU Third Party Access Exemption applications in all three host countries, which allows TAP AG to enter into long term ship-or-pay gas transportation agreements with

1400-536: The Republic of Azerbaijan) owns 51% of the Southern Gas Corridor; the other 49% is owned by State Oil Company of Azerbaijan Republic (SOCAR). As of 2017, The World Bank supplied a $ 400 million loan to BP, a major shareholder and operator of Shah Deniz JV. The Asian Development Bank has stated its planned financing of $ 600 million towards TANAP. As of 2017, the European Investment Bank (EIB)

1456-472: The Southern Gas Corridor is likely to cement further the oppressive structures of the Aliyev government". According to the reports prepared by European Strategic Intelligence and Security Center ( ESISC ) on March and April 2017, the publication of such information serves to create a climate against some countries including Azerbaijan to benefit Armenia which is led by different NGO's and its connections within

1512-645: The Southern Gas Corridor. The opening ceremony of the Southern Gas Corridor took place at the Sangachal Terminal with the participation of Ilham Aliyev on 29 May 2018. The opening ceremony of the Trans-Anatolian gas pipeline took place in Eskisehir , Turkey with the participation of Presidents of Azerbaijan , Turkey and Ukraine on 12 June 2018. On 15 November 2020, the Trans Adriatic Pipeline began commercial operations. In

1568-414: The TAP pipeline. The Managing Director of the company is Luca Schieppati. Shareholders of the Trans Adriatic Pipeline are BP (20%), SOCAR (20%), Snam (20%), Fluxys (20%) and Enagás (20%). There have been incidents of protests by both local citizens and government officials against the Trans Adriatic Pipeline. In Italy, the TAP required the construction of a gas terminal in a historical olive grove in

1624-746: The Trans-European Networks – Energy (TEN–E) program, the European Union designated three of the pipelines as of strategic importance ( ITGI , Nabucco and White Stream )." Also the Trans Adriatic Pipeline was identified that time as a Southern Corridor project. It was planned that the Southern Corridor projects could provide the necessary transportation capacity to deliver 60–120 billion cubic metres per annum (2.1–4.2 trillion cubic feet per annum) of Caspian and Central Asian gas directly to Europe. As of 2017,

1680-814: The conference were the United States, Azerbaijan, Turkey, Greece, and Italy. The fourth meeting of the ministers within the Southern Gas Corridor Advisory Council was held in Baku on 15 February 2018. Albania and Azerbaijan agreed to establish a new company to create project of the Ionian - Adriatic Pipeline (IAP). SOCAR and Albgaz company of Albania, as well as gas distributing companies of neighboring countries such as Montenegro and Croatia signed two documents related to design of new pipelines. This project will connect to

1736-678: The construction of the first stage of Shah Deniz were concluded on June 5, 2003, and Construction work for Shah Deniz began at Sangachal Terminal on November 3 of the same year. Construction works for South Caucasus Pipeline started in Azerbaijan on October 14, 2004. The Shah Deniz field is operated by BP which has a share of 29.99%. Other partners include LUKoil (19.99%), TPAO (19.00%), SOCAR (14.35%), NIOC (10.00%) and Southern Gas Corridor Upstream (6.67%). Eni sold its 5% share to LUKOIL in June 2004. Later divestitures included pre-FID (Final Investment Decision) in December 2013 sales of 10% of

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1792-641: The corridor would pass through Georgia, Turkey, Greece, Albania and Italy and consists of three main projects: This combination of these pipelines will be nearly 3,500 kilometres (2,200 mi) long. The total cost of these projects is estimated $ 45 billion. There are other projects which fall under the SGC: The project's current reserves are approximately 1.2 trillion cubic meters of gas and 2.2 billion barrels of condensate. On 6 February 2018, The European Investment Bank (EIB) voted to hand out EUR 1.5 Billion, one of Europe's largest ever loans, to one of

1848-458: The countryside near the Apulian town of Melendugno . The site presents some century-old olive trees which were explanted and transferred to an alternative location in an operation that cannot guarantee the trees' survival. This was criticised by the local public as well as environmentalists, also in relation to a deadly parasitic disease (Xylella fastidiosa) which has been affecting olive groves in

1904-420: The end of 2005 was estimated to be approximately 7 billion cubic meters or an average of 17 million m (600 million cu ft) per day. The Shah Deniz field also contains gas condensate in excess of 400 million cubic meters. The 692 kilometres (430 mi) South Caucasus Pipeline , which began operation at the end of 2006, transports gas from the Shah Deniz field in the Azerbaijan sector of

1960-417: The gas plant at Sangachal Terminal, at an estimated cost of at least $ 10 billion. The overall cost of Phase 2 expansion, including upstream and midstream stages ( TANAP and TAP pipelines) is estimated to be around $ 45 billion. In December 2016, the Asian Development Bank approved a total of $ 1 billion in both public and private assistance to support the expansion of the Shah Deniz 2 field. The assistance

2016-551: The main topic being the selection of transportation routes for additional gas volumes. Five-year-long, intense negotiations were finalized with the signing of the Final Investment Decision (FID) on 17 December 2013 in Baku, Azerbaijan. Key discussions concentrated on the selection of a pipeline to deliver the additional gas from the field to the European markets. It took years of negotiations to narrow down almost

2072-548: The offshore section. Total construction costs were about €4.5 billion. A third of it was spent for constructing the section within Albania. The Gas Interconnector Greece-Bulgaria (IGB) connects TAP to Greece and Bulgaria since its start of operations in October 2022. Trans Adriatic Pipeline AG is a joint venture company registered in Baar , canton Zug , Switzerland , with a purpose of planning, developing and building

2128-438: The other hand, the EU goals for energy efficiency would reduce gas demand in the next years. The EU has set itself a 20% energy savings target by 2020 when compared to the projected use of energy in 2020. The key targets of the EU on climate policy by 2030 are at least 40% cut in greenhouse gas emissions compared with 1990, 27% of total energy consumption from renewable energy and 27% increase in energy efficiency. According to

2184-415: The pipeline began commercial operations, and the first Azerbaijani gas was delivered to Italy on 30 December 2020. On 27 January 2023, Axpo announced the sale of its 5% shares to Enagas (4%) and Fluxys (1%). Both companies reached an ownership of 20% thanks to this transaction, on par with the other remaining shareholders. On 30 January 2023, TAP announced that the first level of capacity expansion

2240-538: The pipeline is 878 kilometres (546 mi), of which 550 kilometres (340 mi) in Greece, 215 kilometres (134 mi) in Albania, 105 kilometres (65 mi) in offshore, and 8 kilometres (5.0 mi) in Italy. The offshore leg is laid at a maximum depth of 810 metres (2,660 ft). The initial capacity of the pipeline is 10 billion cubic metres (350 billion cubic feet) of natural gas per year, of which 8 billion cubic metres (280 billion cubic feet)

2296-419: The project of Azeri Chiraq Guneshli in 2017. An Agreement (which is amended and restated), was signed between Azerbaijani Government, and some international companies and SOCAR for working together on the project of Azeri Chirag Guneshli and Production Sharing on September 14, 2017, and this contract was confirmed by National Assembly of Azerbaijan on October 31. Total production of Azeri Chirag Guneshli

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2352-428: The project was chosen as a route for gas from Shah Deniz II over the competing Nabucco West project. Later in 2013, BP, SOCAR, Total, and Fluxys became shareholders of the project. In September 2014, E.ON and Total sold their shares to Enagás and Fluxys. In December 2015, Snam joined TAP, acquiring Statoil's 20% interest in the project. Construction of the pipeline started on 16 May 2016. On 15 November 2020,

2408-447: The project. On 22 November 2012, the TAP consortium and Trans-Anatolian gas pipeline 's partners signed a memorandum of understanding that established a cooperation framework between the two parties. On 28 September 2012, Albania, Greece and Italy confirmed their political support for the pipeline by signing a memorandum of understanding. In February 2013, Greece, Italy and Albania signed an intergovernmental agreement. In June 2013,

2464-424: The public during the summer months. Some government officials, such as multiple mayors from the area and the governor of the region of Apulia , also supported the environmentalists' opinion that the pipeline might cause more harm than good and could be an opportunity for local organised crime and corruption to infiltrate public tenders for construction work on the Italian side. They worried especially in relation to

2520-427: The region for years, and can spread to previously unaffected areas with tree relocation. Furthermore, the pipeline's landing point on the Italian coast is located under the pristine beach of San Foca , a popular destination for beachgoers. Locals and environmentalists raised safety concerns regarding millions of cubic litres of compressed flammable gas being piped only 10 metres under a beach which will be kept open to

2576-537: The shares by Statoil , to BP and SOCAR who shared them at 3.3% and 6.7% respectively. as well as sale by Total SA in May 2014 its 10% share to Turkish TPAO In October 2014, Statoil sold its remaining 15.5% stake in the project to Petronas for a fee of $ 2.25 billion. The Shah Deniz reserves are estimated at between 1.5 to 3  billion barrels (240 to 480 million cubic metres ) of oil equivalent from 50 to 100 billion cubic meters of gas. Gas production to date at

2632-483: The shippers of Shah Deniz II gas. The exemptions were granted on 16 May 2013. In February 2012, the Trans Adriatic Pipeline was the first project to be pre-selected and to enter exclusive negotiations with the Shah Deniz Consortium . In August 2012, consortium partners BP , SOCAR and Total S.A. signed a funding agreement with TAP's shareholders, including an option to take up to 50% equity in

2688-461: The target of many protests and petitions around the world. In Italy, there have been protests concerning the corridor and its damage to the environment. In March 2017, environmentalists protested against the removal of historical olive groves; this centuries-old grove was blocking the path of the TAP . Protesters blocked the construction site to prevent trucks and supplies from entering. Police involvement

2744-464: Was announced in 2003 by Swiss energy company EGL Group (now named Axpo). The feasibility study was concluded in March 2006. Two options were investigated: a northern route through Bulgaria , North Macedonia and Albania , and a southern route through Greece and Albania, which finally was considered to be more feasible. In March 2007, the extended basic engineering for the pipeline was completed. Greece

2800-414: Was approximately 588,000 barrels per day including 51,000 b/d from platforms of Chirag, 137,000 b/d from platforms of Central Azeri, 124,000 b/d from platforms of West Azeri, 82,000 b/d from platforms of East Azeri, 117,000 b/d from platforms of Deepwater Gunashli, 77,000 b/d from platforms of West Chirag during a year (2017). Southern Gas Corridor The Southern Gas Corridor is an initiative of

2856-431: Was considering a 2 million euro contribution towards the TAP . Between 2010 and 2015, gas demand in the European Union has decreased more than 20%. At the same time, gas projects are evaluated with a more than 70% higher gas demand scenario in 2030. By 2021 gas consumption only returned to about 2010 levels. The EU has an overall surplus of gas import infrastructure and many of import capacities are underutilized. On

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2912-566: Was discovered in 1999. “An Intergovernmental” Agreement and a “Sale and Purchase” Agreement were signed by delegates of Azerbaijan and Turkey with the participation of President Sezer and President Heyder Aliyev in Ankara on March 12, 2001. "An Intergovernmental" Agreement and relevant agreements for the carrying and selling of natural gas were signed by delegates of Azerbaijan and Georgia with participating of President Shevardnadze and President Aliyev on September 29, 2001. Some contracts for

2968-1048: Was involved, and broke up 300 protesters. More than 60 olive trees have already been removed since the protest, to the locals' dismay. More than 25 NGOs have also written a letter to the EIB Board of Directors and the bank's president, asking for the European Investment Bank to stop funding the TANAP due to the human rights violations the project has caused. The letter states that the Azerbaijani government has used forms of torture, imprisonment, and disruption to protesters, journalists, and other politicians; human rights monitors have also not been able to enter Azerbaijan. Trans Adriatic Pipeline The Trans Adriatic Pipeline ( TAP ; Albanian : Gazsjellësi Trans-Adriatik ; Greek : Διαδριατικός Αγωγός Φυσικού Αερίου , romanized :  Diadriatikós Agogós Fysikoú Aeríou ; Italian : Gasdotto Trans-Adriatico )

3024-566: Was made up of a $ 500 million private-sector loan to the Southern Gas Corridor Closed Joint Stock Company and a $ 500 million sovereign-counterguaranteed partial credit guarantee. This guarantee will back over $ 500 million in commercial loans from a consortium of banks to SCG. According to the 2017 year-end results, Azerbaijani Government has paid out more than $ 456 million in operational costs and approximately about $ 1.176 billion in capital costs on

3080-543: Was opposed to having the route of the Trans Adriatic Pipeline pass through Albania, as it would allow Albania to become the transmission hub for gas in the Western Balkans. On 13 February 2008, EGL Group and the Norwegian energy company Statoil signed an agreement to set up Trans Adriatic Pipeline AG, a joint venture to develop, build and operate the pipeline. In June 2008, the company filed an application with

3136-473: Was triggered following the first binding phase of its 2021 market test. This expansion will add additional 1.2 billion cubic meters (bcm) of capacity per year to the project. The pipeline starts at the Greece–Turkey border at Kipoi, Evros , where it is connected with the Trans-Anatolian gas pipeline . It crosses Greece, Albania and the Adriatic Sea and comes ashore in Italy near San Foca. The total length of

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