...

Expert: No need for Ukraine to have share in TANAP

Oil&Gas Materials 24 October 2012 17:22 (UTC +04:00)

Azerbaijan, Baku, Oct. 24 / Trend A.Badalova /

There is no need for Ukraine to be a shareholder in Trans Anatolian Gas Pipeline (TANAP) in order to diversify its gas supplies, Editor-in-Chief at Eurasia Energy Observer, Andrej Tibold believes.

"In order to diversify and buy Caspian gas via TANAP, Ukraine would not necessarily need to have a share in TANAP," Tibold wrote Trend via e-mail.

Ukraine repeatedly expressed its interest in joining TANAP as a shareholder. According to Ukrainian Ambassador to Azerbaijan Alexander Mishchenko, Ukraine plans to discuss this issue with Azerbaijan until the end of the year. The country's intention to join the project is caused by the interest in diversification of its energy supplies.

Earlier, Ukrainian ambassador to Turkey Sergiy Korsunsky said that Ukraine is interested in taking a stake of up to 10 percent in TANAP.

Tibold stressed that it is not the first time that Ukraine announced its interest in taking part in Southern Corridor projects, and the main interest behind these statements is that Ukraine is looking for the ways to diversify its gas supplies.

"For the moment, I believe, it is not much more than a statement. Ukraine already has great difficulty in financing the maintenance and modernisation of its gas transit system," Tibold said.

He believes that practically, there still would be problems for the gas from TANAP to reach Ukraine.

"For this to function, Ukraine's gas transit system would need to be able to reverse the flow of gas from Europe to Ukraine. Apparently this should become technologically possible in the coming years," he said.

"For the moment, I would judge that it is not much more than a statement, mainly directed at Moscow, with which Ukraine is still trying to negotiate a lower gas price," Tibold added.

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

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

At present, a 20 per cent share in TANAP belongs to Turkish BOTAS, 80 per cent and 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.

Tags:
Latest

Latest