Projects under SGC's development carry strategic importance for Azerbaijan's long-term macroeconomic stability, Fitch Ratings reported.
According to Fitch’s estimate, Azerbaijan will gradually shift its reliance on oil to gas as aging oilfields from the Soviet period push the government to develop new revenue sources: ‘In 2017 oil production declined by 6% due to the natural depletion and compliance with the OPEC/non-OPEC production cut deal. Future growth is likely to be driven by stage 2 of Shah Deniz. The strategic importance of SGC is further strengthened by the cross-border nature of its projects, involved intra-governmental commitments and political support from transit states, the EU and consumers. Most of the gas is already contracted up to 2045 by buyers from the EU and Turkey. In 2017 SGC also secured direct financing of its stakes in the projects from the following international financial institutions: USD0.4 billion from IBRD (part of World Bank group), USD0.6 billion from Asian Infrastructure and Investment Bank, USD1 billion from Asian Development Bank, USD0.5 billion from European Bank for Reconstruction and Development, all of which were fully guaranteed by the Republic of Azerbaijan’.