TANAP is second largest project in world

Photo: TANAP is second largest project in world / Oil&Gas

Baku, Azerbaijan, March 6

By Rufiz Hafizoglu - Trend:

The Trans-Anatolian gas pipeline project (TANAP) is the second largest project in the world upon its technical criteria, SOCAR official representative in Belgium, Vusal Mammadov said at the conference held in this country by the Caspian Strategy Institute (HASEN), HASEN on March 6.

"TANAP will open new opportunities for investments and to create new jobs," Mammadov added.

He also stressed that the Azerbaijani gas will be delivered to Europe in 2019.

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.

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 on 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 NH
Edited by CN

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