Industry Trend Analysis - Development Funding To Deliver Southern Gas Corridor - FEB 2017

BMI View: Multilateral development funding will continue to flow into the Southern Gas Corridor in light of its strategic necessity in supplying Europe with natural gas, underpinning our expectation that the project will ultimately be delivered in a timely manner.

We view a recent flurry of multilateral financing as a harbinger of things to come for the Southern Gas Corridor, a cross-border initiative aiming to connect the natural gas resources of Azerbaijan with demand centres in Europe via:

Shah Deniz II: The USD26bn project, which aims to increase the gas production capacity of Azerbaijan's Shah Deniz field to 26bn cubic metres per year from 10bn, received USD1bn in financing from the Asian Development Bank (ABD) in December 2016.

Southern Gas Corridor A Game Changer
Southern Gas Corridor Route
Source: BMI

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