On the 20th of October of the current year a loan agreement in the amount of US$500 million for the financing of TANAP project was signed between “Southern Gas Corridor” CJSC (SGC) and European Bank for Reconstruction and Development (EBRD).

The aforementioned loan agreement was signed by SGC’s General Director Afgan Isayev and the Director of Energy and Natural Resources for Russia, Caucasus and Central Asia region at EBRD, Aida Sitdikova, while the Guarantee Agreement in relation to the loan agreement was signed by the Minister of Finance of Azerbaijan Republic Samir Sharifov and Aida Sitdikova.

It should be noted that earlier, on the 18^th of October of 2017, the Board of Directors at EBRD approved the allocation of US$500 million to SGC under the loan agreement, backed with the sovereign guarantee, for the financing of TANAP Project.

SGC’s General Director Afgan Isayev having noted that Southern Gas Corridor Project will serve the delivery of Azerbaijani gas to global energy markets and will provide significant contribution to the development of the national economy, gave information in relation to the works done in this direction: “The leading international financial institutions, represented by the International Bank for Reconstruction and Development, Asian Infrastructure Investment Bank and Asian Development Bank, have already provided their support for the Southern Gas Corridor project. SGC’s share for the financing of the Southern Gas Corridor (including the existing Shah Deniz 1 and SCP projects) till 2020 inclusive is US$11.8 billion, out of which US$7.8 billion or roughly 66% has already been invested. Out of this amount, US$1.9 has been invested from the beginning of the year. Within Southern Gas Corridor project, overall progress to 1^st Gas under Shah Deniz Stage 2 project is 96%, 98% (to 1^st Gas) under the South Caucasus Pipeline Expansion (SCPX), 82% for TANAP and 53% for Trans Adriatic Pipeline (TAP) projects. The construction works are successfully progressing.”

The main purpose of the Southern Gas Corridor project is the full-field development of Shah Deniz gas-condensate field (or Shah Deniz Stage 2) and subsequent delivery of the gas to be produced under this project via SCPX, TANAP and TAP to Turkey and Southern Europe.

“Southern Gas Corridor” CJSC was incorporated pursuant to Presidential Decree No. 287 “On relevant measures related to the second stage of the operation of Shah Deniz gas-condensate field and establishment of the Southern Gas Corridor with regard to other projects” dated 25 February 2014; 51% of SGC’s capital is held by the Ministry of Economy of the Republic of Azerbaijan and 49% of the capital is held by SOCAR.