Issues related to TANAP being resolved promptly and efficiently
Baku, Azerbaijan, May 14
By Emil Ismayilov -Trend:
All the issues within the framework of the Trans-Anatolian gas pipeline construction project are resolved promptly and efficiently both from Azerbaijani and Turkish side, Azerbaijani Energy Minister Natig Aliyev said.
The minister noted that Azerbaijan will be implementing such an ambitious project for the first time.
"I say this because the operator of the project is the Azerbaijani side, which undertakes a significant part of the financing and holds most of the equity," Aliyev said.
The share distribution in the TANAP project is as follows: Turkey (20 percent) and Azerbaijan (80 percent).
Following the completion of the process to acquire a stake in the TANAP project by British company BP in 2014, shares in the project will be distributed as follows: SOCAR (operator) - 68 percent, Botas (Turkish state pipeline company) - 20 percent and BP - 12 percent. TANAP project's cost is estimated to be from $10 billion to $11 billion.
The minister said that all the work is being carried out instensively within the project, and in close cooperation of Azerbaijani and Turkish sides. Aliyev expressed confidence that the project will be implemented on schedule.
The pipeline will be commissioned in mid-2018 with the initial capacity of 16 billion cubic meters per year.
About six billion cubic meters of gas out of the 16 billion cubic meters initially will be delivered to Turkey and 10 billion - to Europe.
The throughput of TANAP gas pipeline will reach 31 billion cubic meters per year in 2026.
In 2023, the capacity of the gas pipeline, which is designed to provide transportation of Azerbaijani gas from offshore "Shah Deniz" gas condensate field (in the second phase of development) through Turkey's territory up to its border with Europe will reach 23 billion cubic meters.
The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013.
The gas to be produced within the second phase of the field's development will be exported to Turkey and to European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The consortium for the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea, signed long term contracts (25 years) with nine European companies on gas supply in September 2013.
The contracts for the purchase of gas from the second phase of development of the Shah Deniz field were signed in Baku with the following companies: Shell, Bulgar Gas, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel and Axpo.
The first gas will be delivered to Turkey in 2018 and to Europe in 2019.
The contract for development of the Shah Deniz offshore field, which has proven reserves of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
Participants in the Shah Deniz field development are the State Oil Company of Azerbaijan (SOCAR) with a share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent), Turkish TPAO (nine percent).
Edited by S.I.