Why the EBRD should not finance the Southern Gas Corridor
Publisher: CEE Bankwatch Network
Volume: 3 pages, pdf
Description:
We would like to share our concerns regarding the Southern Gas Corridor, a project designed to bring gas from Azerbaijan to Italy through a series of pipelines stretching over 3,500 kilometres, crossing seven countries and involving more than a dozen major energy companies. The pipeline will import 16 billion cubic metres of gas each year (bcma) into Europe. Costs so far are estimated at USD 45 billion. The realisation of a project of this size largely depends on public financial support. Therefore several major banks have been asked to help finance the Southern Gas Corridor’s different sections. In December 2016 three public banks approved loans: the Asian Development Bank (USD 1 billion for the Shah Deniz gas expansion project), the World Bank (USD 800 million for the Trans Anatolian Pipeline (TANAP), the Turkish leg of the pipeline) and the Asian Infrastructure Investment Bank (USD 600 million for TANAP).