ADB postpones loan approval for Azerbaijan’s major gas project

The Asian Development Bank (ADB) will consider the possibility to allocate loan worth $1.505 billion for the second phase of the Azerbaijani Shah Deniz gas and condensate field’s development September 27, 2016, ADB message said June 3.
Earlier, the bank had to approve the allocation of the loan on August 22, 2016, but then the loan approval was postponed.
The proposed investment plan will support the Azerbaijani government’s efforts to finance Shah Deniz-2 project, and is aimed at improving the country’s fiscal position by increasing revenues from natural gas exports from the expanded Shah Deniz field and creating additional jobs.
The plan will provide a partial credit guarantee (PCG) to support commercial bank financing of government shares in the amount of 16.67 percent of the project’s cost.
If the loan is allocated, it will be used by Southern Gas Corridor CJSC.
The gas to be produced as part of the Stage 2 of the Shah Deniz field’s development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).

Source: Trend