BAKU: The Southern Gas Corridor (SGC) project has attracted a $750 million syndicated loan from the World Bank for the Trans-Anatolian Pipeline (TANAP), one of three pipelines aimed at carrying gas from Azerbaijan to Europe, SGC company said on Saturday.SGC's three pipelines - the Trans-Adriatic Pipeline (TAP), the South Caucasus Pipeline through Georgia and the TANAP through Turkey - will provide the first direct route for carrying 16 billion cubic metres (bcm) of gas from Azerbaijan's giant Shah Deniz field to markets in Europe.
A loan agreement was signed under the guarantee of Azerbaijan's government with the Multilateral Investment Guarantee Agency.
MIGA is an international financial-credit institution established in 1988, as a part of the World Bank Group, to encourage direct investments in member countries. The organisation provides the insurance for the investments against non-commercial risks.
The first commercial gas deliveries to Turkey commenced on Saturday. The chain of pipelines can be expanded after it becomes fully operational in 2020.
The Shah Deniz I field, which has been pumping gas since 2006, has a production capacity of 8 bcm, and output from Shah Deniz II is expected to reach 16 bcm of natural gas per year, with 10 bcm earmarked for Europe and 6 bcm for Turkey.