EBRD to finance project connecting SGC with Western Europe

The European Bank for Reconstruction and Development (EBRD) is providing 60 million euros loan for the construction of a new gas pipeline between Romania, Bulgaria, Hungary and Austria (BRUA), said a message from EBRD.

BRUA can ensure transmission of gas from the Southern Gas Corridor to Austria through the section on the territory of Romania.

The pipeline will ensure the integration of the Southern Gas Corridor sources into the Central and Western European markets.

“With a total length of 1,318 km, the so-called BRUA gas corridor will offer better interconnection between the countries along its route. It will boost the energy market by enabling new links with major gas infrastructure projects such as the Southern Gas Corridor, through Trans Adriatic Pipeline (TAP) and Trans Anatolian Natural Gas Pipeline (TANAP), other central European gas hubs and future offshore production sites in the Black Sea,” saud the message.

The EBRD funds will be extended to Romania’s Transgaz which is building the Romanian section of the pipeline.

The total project cost is 479 million euros.

The Southern Gas Corridor, worth $41.5 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas sources. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At an initial stage, the gas to be produced in 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 Shah Deniz Stage 2, 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 (TANAP) and Trans Adriatic Pipeline (TAP).