Daily Management Review

BR to join TANAP


British energy giant BP signed a shareholders' agreement with a consortium of Trans Atlantic Gas Pipeline (TANAP), in which he will share 12% of the shares.

Picture: neurope.eu
Picture: neurope.eu
TANAP is a project that implies the construction of gas system pipelines from Azerbaijan's Shah Deniz field through Georgia, Turkey, Greece, Albania to the south of Italy by 2019. According to the plans for the construction of the first stage of the pipeline, it is planned to supply 6 billion cubic meters of natural gas to Turkey and 10 billion cubic meters to European countries through TANAP. - said BGN News.com

It is also planned that in the future capacity of the pipeline can be increased to 31 billion cubic meters. The ceremonial event, which will start the construction of the pipeline TANAP will be held March 17, 2015 in the eastern Turkish province of Kars.

Trans-Anatolian gas pipeline (TANAP) and a new gas pipeline from Russia to Turkey, which has already received an informal name "Turkish flow" can be complementary to each other projects - previously stated Turkish Ambassador to Azerbaijan Ismail Alper Dzhoshgun.

He noted in particular the expansion of cooperation between Turkey and Russia in the gas sector, though said that the agreement is still on the level of intentions.

"We will continue to work on this issue, and a decision on the project (" Turkish Stream "- Ed.). Depends on its profitability for both parties. These projects are carried out after realizing that they are cost-effective, "- said Dzhoshgun, did not rule out the possibility of easing steps ofTurkey in the direction of the project TANAP.

Currently Russia is the main supplier of "blue fuel" in Turkey. In 2013, the country has transported 26.7 billion cubic meters of gas from Russia. In 2014, the possible increase in the volume of Russian gas supplies to Turkey up to 30 billion cubic meters.

Pipeline’s construction is controlled by Worley Parsons Limited, which pledged to perform services for the planning, design, engineering, construction management process, contracting, procurement, project supervision and other works for the construction of the pipeline and associated infrastructure, including compressor stations.

The total cost of the pipeline project TANAP is $11.7 billion, and the capacity of IHP TANAP in the first phase will be 16 billion cubic meters of natural gas. Of these, 10 billion cubic meters will be destined for Europe, and 6 billion cubic meters - for Turkey. It is expected that in the future capacity of the pipeline can be increased.

According to the participants of the project, by 2026 the annual throughput capacity of TANAP will be 31 billion cubic meters.

Percentage of participants in the project are distributed as follows: Azerbaijani state company SOCAR owns 68%, BOTAS and TPAO - 10%, the British BP - 12%.

Currently, SOCAR is ready to sell part of its stake in the project, but plans to retain a 51% stake.
TANAP is an integral part of the project of the Southern Gas Corridor, which will deliver the "blue fuel" from the Shah Deniz field to Europe.