Azerbaijan has opened the first section of the Southern Gas Corridor (SGC), which will supply natural gas from the Caspian Sea to Europe.

The first section of the project was inaugurated by the president of the Republic of Azerbaijan Ilham Aliyev at the Sangachal terminal, nearly 55km from the capital city of Baku.

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Estimated to cost nearly $40bn, the SGC pipeline will eventually connect Shah Deniz 2 gas field in the Caspian Sea with southern Italy travelling through Azerbaijan, Georgia, Turkey, Greece and Albania.

Overall, the pipeline will have three sections – the South Caucasus Pipeline through Georgia; the Trans-Anatolian Pipeline (TANAP) through Turkey; and the Trans-Adriatic Pipeline (TAP), reported Xinhuanet.com.

Natural gas deliveries to Georgia and Turkey are expected to start from this year, while deliveries to Europe are expected to commence from 2020.

“Natural gas deliveries to Georgia and Turkey are expected to start from this year, while deliveries to Europe are expected to commence from 2020.”

This new corridor is expected to reduce European dependence on Russian exports as well as increase natural gas supply sources.

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At the inauguration ceremony, President Aliyev said Azerbaijan does not have access to the world ocean seas, making it imperative to build pipelines to supply petroleum and natural gas to other countries.

The Baku-Supsa oil pipeline, the first international pipeline from Azerbaijan to Georgia’s Supsa, was commissioned in 1999.

He added that the Southern Gas Corridor is very important to the country and ‘indispensable’ to diversify the country’s energy resources.

Azerbaijan has a confirmed gas reserves of 2.6 trillion square metres, which may increase as further exploration continues in the country, opined president Aliyev.