European Bank for Reconstruction and Development (EBRD) is ready to help finance the Southern Gas Corridor (SGC) project President Suma Chakrabarti said at a press conference in Baku on Wednesday.
Chakrabarti said the EBRD has firmly committed to participate in the project.
An EBRD representative accompanying Chakrabarti told Interfax that the bank is ready to provide its own loans banks for project implementation and to organize a syndicated loan from commercial. "This concerns two SGC components: the Trans Anatolia Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP). The EBRD is ready to allocate $500 million to SGC and also organize syndicate of commercial banks for a total of $1 billion," the representative said, noting that discussion of the project is in the initial stage.
SGC stipulates construction of the TANAP and TAP pipelines, linking the Shah Deniz field to southern Italy via Georgia, Turkey, Greece, Albania and the Adriatic Sea.
Aside from TANAP and TAP, the main components of the project, estimated to cost $45 billion, are Stage 2 of the Shah Deniz project, which will cost an estimated $28 billion, and expansion of the South Caucasus Gas Pipeline (Baku to Georgia-Turkey border).
Supplies of Azerbaijani gas to Europe - 10 bcm a year - are expected to begin in 2020. In addition, 6 bcm will be supplied to Turkey's western regions.
Turkish Botas has a 30% stake in TANAP, State Oil Company of the Azerbaijani Republic (SOCAR) has 58% and BP - 12%. SOCAR, BP and Snam each hold a 20% stake in the TAP project, Fluxys has 19%, Enagas - 16% and Axpo - 5%.
The contract to develop the big Shah Deniz field was signed in Baku on June 4, 1996 and ratified by Azerbaijan's parliament later that year on October 17. Consortium participants include project operator BP (28.8%), TPAO (19%), SOCAR (16.7%), Petrobras (15.5%), and Lukoil and Nico (10% each).