Regional Focus: Mega-project in the FSU: Ongoing development of the Shah Deniz gas field

Multiple billions of dollars have been invested to develop the Shah Deniz gas field. The project is led by the government of Azerbaijan and Lukoil Corp. and requires the ongoing construction of enormous, expensive assets. One reason for the high cost and complexity of the venture is that gas extracted from the Shah Deniz’s Stage 2 development is delivered from Azerbaijan to Europe via the Southern Gas Corridor (SGC). The $8.5-B, multinational SGC natural gas project is supported by the European Commission and financed by the World Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Infrastructure Investment Bank (AIIB). Energy security from the Southern Gas Corr