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Turkey to grant discounts for TANAP project

Oil&Gas Materials 28 September 2012 13:55 (UTC +04:00)
Discounts will be granted for the TANAP pipeline as well in the framework of the economy and a business stimulus package in Turkey which was previously approved by Parliament, Hurriyet newspaper reported on Friday.

Azerbaijan, Baku, Sept. 28 /Trend A. Tagiyeva/

Discounts will be granted for the TANAP pipeline as well in the framework of the economy and a business stimulus package in Turkey which was previously approved by Parliament, Hurriyet newspaper reported on Friday.

The Turkish ministry of finance and ministry of energy and natural resources are developing the discount package for TANAP project. The value added tax will be eliminated for local and imported equipment and machines for project realisation.

Following the completion of the project investment, TANAP will be able to receive a premium on employment insurance. It will also be free of custom taxes and the tax burden will be reduced.

A new package of economic stimulus measures came into force in June of 2012. The provinces where the stimulus process will be implemented are divided into six regions in accordance with the level of their level of social and economic development.

Large scale investments in the general capital, such as production of oil products, chemicals and chemical production, production of vehicles, the minimal amount of which is from 50 to one billion liras, will contribute to the stimulus process.

The TANAP project envisages construction of the pipeline from the eastern border of Turkey to the country's western border to supply gas from the Azerbaijani Shah Deniz gas field to Europe through Turkey.

On June, 26 Azerbaijan and Turkey signed an intergovernmental agreement on the TANAP implementation.

At present, a 20 per cent share in TANAP belongs to Turkish BOTAS and the remainder of 80 per cent to the State Oil Company of Azerbaijan (SOCAR). The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About six billion cubic meters will be delivered to Turkey and the rest to Europe.

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