Azerbaijan, Baku, April 9 / Trend A.Taghiyeva, E. Ismayilov /
Work will start on manufacturing pipes and ordering other equipment required for the implementation of the Trans-Anatolian (TANAP) pipeline project by the autumn of 2012, Anadolu agency quotes the head of the Foreign Investment Department of the State Oil Company of Azerbaijan (SOCAR) Vagif Aliyev as saying on Monday.
"Work has begun on the preparation of a feasibility study of the TANAP project. It is planned to begin the actual work by the autumn of 2012," Aliyev said.
Azerbaijan and Turkey plan to create a pipeline from the eastern border of Turkey to the country's western border. At present the Turkish state owned energy company BOTAS has a 20 per cent stake in TANAP, while the State Oil Company of Azerbaijan (SOCAR) holds 80 per cent in the project.
The initial capacity of the pipeline is expected to reach 16 billion cubic meters per year. About six billion cubic meters of the volume will be allocated to Turkey, while the rest will be transported to Europe. At present, Azerbaijan is on the verge of choosing the route for gas exports to Europe via Turkey. Azerbaijan currently exports gas to Turkey via the South Caucasus gas pipeline.
According to Aliyev, Azerbaijani gas imported by Turkey is the cheapest compared to other sources of gas supply to the country.
"Higher gas prices in Turkey have nothing to do with the Azerbaijani gas, as it costs a lot less than other gas supplied to the country," Aliyev said.
The length of the Baku-Tbilisi-Erzurum pipeline (South Caucasus Pipeline) is more than 700 kilometres. Power flow is more than 20 billion cubic meters of gas a year. Gas produced at the gas condensate field Shah Deniz in the Azerbaijan sector of the Caspian Sea is transported through this pipeline. Gas is supplied to Georgia and Turkey and Azerbaijan also buys gas.