Baku, Azerbaijan, Feb. 26
By Emil Ismayilov and Rufiz Hafizoglu - Trend:
Turkey is intending to put a part of its stakes in the Trans-Anatolian Gas Pipeline (TANAP) up for privatisation, Turkish Energy and Natural Resources Ministry told Trend on Feb. 26.
Turkey's share in the project is 20 percent.
The TANAP project envisages transporting gas from the Shah Deniz field through Turkey up to the country's border with Europe. The initial capacity of the pipeline is expected to be 16 billion cubic meters per year. About six billion cubic meters of gas will be delivered to Turkey and the rest to Europe. In the future, the pipeline's capacity can be expanded to 31 billion cubic meters of gas per year.
"The issue of partial privatisation of Turkey's share in TANAP has already been submitted to the Turkish Cabinet of Ministers," the ministry said. "It is expected that this issue will be clarified in the coming weeks."
However the ministry did offer to say what size the share would be for privatization.
Previously Turkish Energy and Natural Resources Minister Taner Yildiz said Turkey intends to increase its stake in TANAP project up to 30 percent.
Currently the share distribution in the TANAP project is conducted as follows: Turkey (20 percent) and Azerbaijan (80 percent).
Following the completion of the process on acquiring a stake in the TANAP project by British company BP, the shares in the project will be distributed as follows: SOCAR (operator) - 68 percent , Botas (Turkish state pipeline company) - 20 percent and BP - 12 percent.
TANAP shareholders plan to lay the pipeline's foundation in the second quarter of 2014 and to commission it in 2018. TANAP project's cost is estimated at $10 billion to $11 billion.
On December 17, 2013 a final investment decision was made on the second phase of Azerbaijani Shah Deniz offshore gas and condensate field's development.
The gas from the field will first go to the European market.
The gas to be produced within the second phase of the field's development will be exported to Turkey (six billion cubic meters per year) and to the European markets (10 billion cubic meters per year) by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
TAP's initial capacity will be 10 billion cubic meters per year, with a possibility of expanding it to 20 billion cubic meters per year.
TAP's shareholders include BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (nine percent) and Axpo (five percent).
Partners operating for Shah Deniz field's development, which has reserves of 1.2 trillion cubic meters of gas, include State Oil Company of Azerbaijan Republic (SOCAR) with a share of 16.7 percent, British BP (28,8 percent), Norwegian Statoil (15.5 percent), Iranian NICO (10 percent), French Total (10 percent), Russian Lukoil (10 percent) and Turkish TPAO (nine percent).
Translated by E.A.
Edited by S.M.