New pipeline on Turkish territory may require additional guarantees for Nabucco
Azerbaijan, Baku, Dec. 28 /Trend A.Badalova/
The plans to build Trans Anadolu gas pipeline (TANAP) may require additional guarantees for the Nabucco project, Bloomberg reported with the reference to the head of RWE's supply and trading unit Stefan Judisch.
"While a plan to build the Trans Anadolu pipeline would shorten Nabucco, lowering its investment costs, it raises questions about access and financing," Judisch said in an interview.
RWE is one of the shareholders in Nabucco project, which is designed to transport gas from the Caspian region and Middle East to the European countries. The project's other partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz and Turkish Botas.
Gas, which will be produced within the second stage of the Azerbaijani Shah Deniz gas condensate field development, is regarded as the main source for Nabucco project.
Construction of Nabucco is planned to start in 2013 and the first supplies will start in 2017. The maximum capacity of the pipeline will be 31 billion cubic metres per year.
Earlier Turkish Energy Minister Taner Yildiz said that TANAP, which will be built on the Turkish territory, can be connected to the Nabucco gas pipeline.
Judisch said that linking the pipelines may require a "pre-completion guarantee" from the builders of TANAP project as "banks would need a guarantee that gas actually flows".
"The new project may also raise concerns by potential non-Azeri suppliers from Turkmenistan or Iraq about access to the system," he said.
The construction of Trans Anadolu gas pipeline (TANAP) is required for the export of most part of 50 billion cubic meters of gas that Azerbaijan intends to produce in 2025. Baku and Ankara intend to construct new pipeline on the Turkish territory, which will stretch from the eastern border of Turkey to the country's western border.
The parties involved in the project intend to resolve all issues on this gas pipeline in 2012. They also plan to commence construction immediately in order to complete it by late 2017. The second stage of development of the Azerbaijani Shah Deniz gas condensate field will be launched during that period.
According to Yildiz, the pipeline cost will be set by SOCAR and may be close to the figure of $5 billion. The initial capacity of TANAP will amount to 16 billion cubic meters per year.