June 30, 2018 / 6:36 PM / a year ago

Southern Gas Corridor project attracts $750 mln syndicated loan

BAKU, June 30 (Reuters) - The Southern Gas Corridor (SGC) project has attracted a $750 million syndicated loan from the World Bank for the Trans-Anatolian Pipeline (TANAP), one of three pipelines aimed at carrying gas from Azerbaijan to Europe, SGC company said on Saturday.

SGC’s three pipelines - the Trans-Adriatic Pipeline (TAP), the South Caucasus Pipeline through Georgia and the TANAP through Turkey - will provide the first direct route for carrying 16 billion cubic metres (bcm) of gas from Azerbaijan’s giant Shah Deniz field to markets in Europe.

A loan agreement was signed under the guarantee of Azerbaijan’s government with the Multilateral Investment Guarantee Agency.

MIGA is an international financial-credit institution established in 1988, as a part of the World Bank Group, to encourage direct investments in member countries. The organisation provides the insurance for the investments against non-commercial risks.

The first commercial gas deliveries to Turkey commenced on Saturday. The chain of pipelines can be expanded after it becomes fully operational in 2020.

The Shah Deniz I field, which has been pumping gas since 2006, has a production capacity of 8 bcm, and output from Shah Deniz II is expected to reach 16 bcm of natural gas per year, with 10 bcm earmarked for Europe and 6 bcm for Turkey. (Reporting by Nailia Bagirova and Margarita Antidze; writing by Margarita Antidze; editing by Alison Williams)

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