Baku, Azerbaijan, June 4
By Emil Ismayilov - Trend:
The Trans-Anatolian gas pipeline (TANAP) will have a great capacity and along with Azerbaijani gas, it will also be able to transport gas from Turkmenistan and other countries, Turkey's Deputy Minister of Energy and Natural Resources, Metin Kilchi told reporters on June 4.
"Along with the Azerbaijani gas, TANAP's capacity will allow to transport gas from Turkmenistan and other countries. We will be convinced of this after the successful implementation of the project," he said.
Turkish deputy minister also expressed his satisfaction with the increase of the Turkish companies' share in the projects for development of Azerbaijan's Shah Deniz gas condensate field and TANAP.
Talking about the possibility of increasing the share of the Turkish side in the TANAP project, Kilchi pointed out that various options can be considered regarding this, in order to develop the project.
He went on to add that Turkey is interested in activating its participation in developing Azerbaijan's hydrocarbon reserves.
The TANAP project envisages transporting gas from the Shah Deniz field through Turkey up to the country's border with Europe.
The pipeline's initial capacity 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. The pipeline's capacity can be further expanded to 31 billion cubic meters of gas per year.
TANAP shareholders plan to lay the pipeline's foundation in the second quarter of 2014 and 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 Stage 2 of the 'Shah Deniz' offshore gas and condensate field's development. The gas produced at this field will first go to the European market.
The gas to be produced as part of the Stage 2 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).
Partners operating for Shah Deniz field's development, which has reserves of 1.2 trillion cubic meters of gas, include 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).
Turkiye Petrolleri Anonim Ortaklıgı (TPAO) and 'Total Azerbaijan' companies signed a contract on May 30 in Istanbul on the purchase and sale of Total's 10 percent share in the project of development of Azerbaijan's 'Shah Deniz' offshore gas and condensate field.
Under the contract, the TPAO's share in this project increased to 19 percent.
Moreover, SOCAR and Turkey's state-owned Botas Pipeline Company have signed a contract for the sale of SOCAR's 10 percent share in the TANAP project. The purchase and sale contract was signed on May 30 in Istanbul.
After completing the deals with BP and Botas, SOCAR's share in the TANAP project will be equal to 58 percent. And the shares of BP and Botas will be 12 percent and 30 percent, respectively.
Edited by C.N.