Hogan Lovells advises the Shah Deniz consortium, on the completion of the US$40bn Shah Deniz 2 gas project and Southern Gas Corridor

Press releases | 06 January 2021

London 6 January – International law firm Hogan Lovells has advised the Shah Deniz consortium, led by bp and SOCAR, on the commencement of the first commercial gas pipeline deliveries to Europe from Azerbaijan via the newly-completed Southern Gas Corridor (SGC) pipeline system. Commercial gas deliveries to Europe from the Shah Deniz gas field began on 31 December 2020 under long-term gas sales contracts with major European energy companies.

The flow of gas through the final section of the SGC, the Trans Adriatic Pipeline (TAP), marks the full integration of the entire complex SGC gas value chain (involving several interconnecting pipeline systems) which spans 3,500 km from Azerbaijan to Italy. This is a landmark project as it opens up a new supply route for gas to Europe from the Caspian region, and contributes to European energy security.

Since 2010, the Hogan Lovells team has been advising the upstream consortium as project counsel on the regulatory and contractual framework for the entire Southern Gas Corridor. The firm also advises SOCAR Midstream as operator of the South Caucasus Pipeline and Azerbaijan Gas Supply Company as seller of all Shah Deniz gas.

The cross-office team is led by London oil and gas partner Ben Sulaiman with support from senior associates Janet Duff, Niazi Kabalan and Shah Jahan Khandokar, associates Amy Cleaves and Emily Harris, and a team in Rome including partner Francesca Angeloni and senior associate Emanuela Cocco.

Commenting on the project, partner Ben Sulaiman said: “We are delighted to be involved in this world-class project which diversifies Europe’s energy market and strengthens its energy security. Completion of the Southern Gas Corridor is a huge success for the Republic of Azerbaijan, and it has been a pleasure working with bp, SOCAR and all involved over the past ten years.”