Moody’s International rating agency has confirmed the rating of senior unsecured ratings in foreign currency of Southern Gas Corridor CJSC (SGC) at Ba1 and changed the outlook from stable to positive.
According to Moody’s, Azerbaijan benefits from higher EU demand for its gas, reflecting the bloc’s efforts to diversify sources and supply routes in order to reduce dependence on Russian gas.
Over the past 1-2 years, Azerbaijan has signed several agreements with the European Commission, as well as with individual European economies on gas supplies. As a result, gas production and exports have increased significantly since 2022, with additional growth opportunities on the back of SGC pipeline exploration and expansion projects. In the hydrocarbon sector, increasing gas supplies will ensure diversification from traditional dependence on oil, especially as oil production continues to decline due to depletion of oil reserves, according to agency analysts.
SGC is a special purpose company created by presidential decree in 2014. 51% of the participation in the company belongs to the Ministry of Economy, and 49% belongs to the State Oil Company of Azerbaijan (SOCAR). SGC was established to consolidate, manage and finance the interests of the state in the development of the “Shah Deniz” gas condensate field, the expansion of the South Caucasus gas pipeline, the implementation of the Trans-Anatolian Gas Pipeline (TANAP) and Trans-Adriatic Gas Pipeline (TAP) projects.
