TANAP marks revolution in energy history of Azerbaijan and Turkey

Trend AZ

Trans-Anatolian pipeline project (TANAP) marks a revolution in the energy history of Azerbaijan and Turkey, as it will be implemented at the expense of funding and infrastructure of these two countries, the head of SOCAR Turkey Enerji, a board member of Petkim Petrochemical Holding Kenan Yavuz told Trend on Tuesday.

According to Yavuz, it is expected that first construction works within TANAP will start in 2014. And the first delivery of Azerbaijani gas to Turkey will begin already in 2017, he said.

According to the latest estimates, the cost of the TANAP project totals $ 10 billion, Yavuz said.

"At the moment we are negotiating with international companies such as BP, Statoil and Total on assignment of interest in TANAP," he said.

Yavuz also noted the importance of the TANAP project for Europe with consideration of European trends towards diversification of gas supply sources. Given the problems arising between the EU and Russia, the main supplier of gas, implementation of the TANAP project is very important for the EU, Yavuz said.

SOCAR partners on Shah Deniz development project presented their preliminary intentions to acquire a stake in the TANAP project. According to preliminary data, the partners intend to distribute a 29 per cent share in TANAP as follows: Statoil and BP are to receive 12 per cent each and Total would get five per cent.

Presently, a 20-percent share in TANAP belongs to Turkish BOTAS and TPAO, while 80 percent is owned by the State Oil Company of Azerbaijan (SOCAR). SOCAR intends to retain 51 percent of the equity in the project. Turkey will keep 20 percent of the equity.

TANAP project envisages construction of the pipeline from the eastern border of Turkey to the country's western border to supply gas from Azerbaijani Shah Deniz gas field to Europe through Turkey. The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About six billion cubic meters will be delivered to Turkey, and the rest - to Europe.

Source: http://en.trend.az/capital/energy/2128564.html