Realization of the Southern Gas Corridor project in Georgia is going on in line with schedule, Georgian Deputy Energy Minister Mariam Valishvili said in an exclusive interview with Trend Sept. 28.
“The work schedule is being complied with, and there are no problems,” said Valishvili. “All the agreements have been concluded, and state authorities were issued all the permits.”
Accordingly, she said, there are no difficulties in the project’s implementation.
She added that as of now roads are being built and lands are getting cleared for further construction in Georgia, and other preparatory works are underway in the country as part of the Southern Gas Corridor project.
“The main construction works as part the project [in Georgia] will begin in 2016,” Valishvili said.
The expanded South Caucasus Pipeline (SCP) will serve as a part of the Southern Gas Corridor in Georgia.
The South Caucasus Pipeline commences at the Sangachal Terminal in Azerbaijan and runs to the Georgia-Turkey border.
The South Caucasus Pipeline Expansion (SCPX) project will expand the existing seven billion cubic meters annually (bcma) SCP system to accommodate a further 16 bcma with a new 48-inch pipeline loop, constructed parallel to the existing SCP.
The South Caucasus Pipeline Expansion project also includes construction of a number of facilities.
These comprise two new compressor stations in Georgia, two intermediate pigging stations (one in Azerbaijan and Georgia), six 48-inch block valve stations (one in Georgia and five in Azerbaijan), pressure reduction and metering stations at the international borders, and the interconnection with TANAP at the Georgia-Turkey border.
The project is expected to provide $2 billion in foreign direct investment to the country.
20 percent of the capital expenditure is planned to be spent on goods and services provided by local Georgian suppliers.
Around 2,000 local jobs will be created on construction projects.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian Sea region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz development, gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.