Azberaijan gas project to boost energy security in Europe
A financing package worth US$ 960 million (€884 million equivalent) will assist the development of a natural gas field in Azerbaijan and improve energy security in Europe by diversifying the sources and routes of gas supply to the continent.
The EBRD and the Asian Development Bank, with the participation of the Black Sea Trade and Development Bank, arranged the financing for the Shah Deniz II offshore gas field. A syndicate of commercial banks contributed to the package extended to Lukoil Overseas Shah Deniz Ltd, a subsidiary of Lukoil, which has a 10 per cent interest in the gas field.
The gas will be transported through a chain of pipelines – including the existing South Caucasus Pipeline, which will be extended under the project – as well as through the planned Trans-Anatolian and Trans-Adriatic pipelines. This network of pipelines will transport the gas from Azerbaijan via Georgia and Turkey to Greece and Bulgaria, and on to Italy, from where it can reach wider Europe. The project will also help to cut carbon emissions by providing a bridge fuel for renewables and replacing coal.