Azerbaijan's SOCAR increases share in Southern Gas Corridor managing company to 51%
BAKU. Dec 11 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) has increased its share in CJSC Canub Qaz Dehlizi (CQD), the managing company for the Southern Gas Corridor project, from 49% to 51%.
The corresponding instruction was signed by Azerbaijani President Ilham Aliyev on Tuesday, a statement on the presidential website said.
The state's share in the company has fallen from 51% to 49% while SOCAR's share has increased to 51%, the order said.
The decision was made in order to ensure SOCAR's preferential rights in managing CQD for the full consolidation of the CJSC's financial results in the state company's reporting.
"Ownership rights to 2% of shares in CQD's charter capital belonging to the state will be transferred to SOCAR and included in the state company's charter capital," it said.
The order is effective from the day it is signed.
As reported, the Azerbaijani president signed a decree on creating CQD on February 25, 2014, aimed at consolidating, managing and financing the state's share in the projects for the stage 2 development of the Shah Deniz field, the South Caucasus Pipeline, the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP). CQD was founded on March 31, 2024, represented by the state through the Economy Ministry (51%) and SOCAR (49%).
As of June 30, 2024, the assets of CQD totaled $14.749 billion, up 0.3% since the end of 2023. The company's share capital was unchanged at $2.415 billion.
The Southern Gas Corridor, which cost $33 billion, was built to export gas from the Caspian region to Europe. Azerbaijan began exports via the Southern Gas Corridor on December 31, 2020. In 2024, exports from Azerbaijan are projected to reach 25 billion cubic meters, of which 12.5 billion cubic meters will be supplied to Europe.
In 2023, the country exported 23.8 billion cubic meters of gas, up 5.3% from 2022, with 11.8 billion cubic meters going to Europe, up 3.5%.
Ten countries in the region currently purchase Azerbaijani gas - Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, Croatia, Slovakia and North Macedonia. Azerbaijani gas is also purchased by Turkey and Georgia.
