BAKU, Azerbaijan, June 1. Southern Gas Corridor
remains an important part of Europe’s diversification architecture,
Director of the Energy Platform Task Force, Directorate-General for
Energy at the European Commission, Cristina Lobillo Borrero said in
an exclusive interview with Trend ahead of the Baku Energy Week.
"It has provided reliable gas supplies to the EU and has
contributed to reducing the EU’s dependence on Russian gas. Looking
ahead, gas imports from Azerbaijan through the Southern Gas
Corridor (SGC) will continue to play an important role, especially
in the context of geopolitical volatility and the EU’s objective to
fully phase out Russian energy imports. The EU remains a reliable
trade partner for Azerbaijani gas, and Azerbaijani supplies
contribute to strengthening security of supply during the current
Middle East crisis,” she said.
On expansion, Borrero said the key principle is that further
capacity increases should be market-based.
“The first level of TAP expansion, adding 1.2 bcm per year, has
already taken place. Further expansions need to be justified by
market prices, demand and regular market tests. This is important
both for commercial credibility and for consistency with Europe’s
evolving gas-demand outlook.
There is political recognition of the SGC’s role in
diversification, but the EU can no longer fund fossil fuels
infrastructure from its budget. Therefore, any further expansion
should be underpinned by commercial investment and, where
appropriate, potential financing from international financial
institutions. The focus should be on infrastructure that
strengthens security of supply without creating new long-term
dependencies," Borrero explained.
