Increased gas deliveries from Azerbaijan helped prevent further price spirals in EU: Commissioner
Increased pipeline gas deliveries from Azerbaijan via the Southern Gas Corridor have contributed to securing gas supplies to the EU, said Mairead McGuinness, the European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, according to EU documents, News.Az reports.
She pointed out that the Memorandum of Understanding on Energy (MoU) signed on 18 July 2022 with Azerbaijan is part of the EU’s efforts to diversify its energy sources.
“Increased pipeline gas deliveries from Azerbaijan via the Southern Gas Corridor have contributed to securing gas supplies to the EU in the wake of the energy crisis and preventing further price spirals,” said the Commissioner.
The Southern Gas Corridor commenced the transportation of Azerbaijani gas to Europe on December 31, 2020, facilitating the movement of gas from the Caspian Sea region to European countries through Georgia and Turkey. The total cost of the project amounted to $33 billion, notably less than the initially forecasted $45 billion. Capital expenditures for the Southern Gas Corridor project are expected to be fully reimbursed within 8–10 years.
In July 2022, Azerbaijan and the EU reached an agreement to increase the volume of gas supplies via the Southern Gas Corridor from the existing 10 billion cubic meters to 20 billion cubic meters by 2027.