Trend Southern Gas Corridor project, which envisages transportation of Azerbaijani gas to Europe, is a key energy project in Europe, said CEO of Italy’s Snam company Marco Alvera.
“A key energy project in Europe is the Southern Gas Corridor. There is opportunity to access different markets,” he said during the conversation on future of gas in Europe and challenges.
He pointed out that domestic gas production is declining, so imports will need to rise.
“Gas is at an inflection point. In 2005 we were talking about scarcity. Today we are in a situation of abundance,” added Alvera.
Snam CEO noted that the key barrier to increasing gas adoption – especially in developing markets is cost.
“Gas is still too expensive, especially compared to coal. This means that switching from more polluting fuels to gas, and reaping its global and local benefits in terms of emissions and air quality, imposes an economic burden that the industry needs to work to reduce,” he added.
Snam is one of the shareholders of the Trans Adriatic Pipeline (TAP) project, which is a part of the Southern Gas Corridor.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian 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, the 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.
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