Turkey increases share in TANAP
Baku, Azerbaijan, May 30
By Emil Ismayilov - Trend:
Azerbaijani Energy Minister Natig Aliyev and his Turkish counterpart Taner Yildiz will sign an agreement to increase Turkey's share in the Trans-Anatolian gas pipeline project (TANAP) to 30 percent in Istanbul on May 30, the world media reported on May 30.
Currently, Turkey's share in TANAP project is 20 percent.
SOCAR previously reported that it intends to retain not less than 51 percent of 80 percent equity stake in TANAP project. British BP decided to buy some 12 percent stake in the project (the transaction must be completed in 2014). BP is the operator of the Azerbaijani offshore gas condensate Shah Deniz field development project.
The TANAP project envisages gas transportation from the Shah Deniz field to Europe via Turkey. The pipeline's initial capacity is expected to reach 16 billion cubic meters per year. Around six billion cubic meters will be delivered to Turkey and the rest to Europe. In future, the pipeline's capacity can be expanded to 31 billion cubic meters of gas per year.
TANAP shareholders plan to lay the pipeline foundation in the second quarter of 2014 and to commission it in 2018. TANAP project cost is estimated at $10 billion - $11 billion.
On December 17, 2013, a final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field development. The gas from the field will be first supplied to the European market.
The gas to be produced within the second phase of the field development will be exported to Turkey at six billion cubic meters per year and to European markets at 10 billion cubic meters per year by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The participants developing Shah Deniz field are the State Oil Company of Azerbaijan Republic (SOCAR) with a 16.7 percent share, BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), the French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (9 percent).
edited by CN