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BCG: Southern Gas Corridor is the key route to reduce Europe’s structural gas supply gap

03 March 2026 15:59 (UTC +04:00)

The European Union is facing a structural gas supply gap, and in this context, the Southern Gas Corridor (SGC) holds strategic importance as the main expandable pipeline route, Marco Tonegutti, Managing Director of Boston Consulting Group, said at the meeting of the Southern Gas Corridor Advisory Council held in Baku, APA-Economics reports.

According to him, domestic gas production in the EU is declining, while import dependence remains high. Although LNG supplies have increased, these volumes are sensitive to price and geopolitical risks.

The BCG representative noted that Azerbaijan has additional production potential and that it is possible to increase gas exports by the end of the decade. Expansion is technically feasible; however, this requires long-term contracts, coordination of financing, and political and regulatory stability.

According to him, the Southern Gas Corridor is currently the only expandable non-Russian pipeline gas route capable of strengthening Europe’s energy security.

Rahim Tariverdiyev

European Union Southern Gas Corridor SGC Boston Consulting Group Marco Tonegutti Azerbaijan gas exports EU energy security LNG supplies gas production non-Russian gas route