Turkish Stream not rival to TANAP - SOCAR Turkey Energy

Oil&Gas Materials 1 May 2015 16:44 (UTC +04:00)

Baku, Azerbaijan, May 1

By Aygun Badalova, Rufiz Hafizoglu - Trend:

Turkish Stream project initiated by Russia is not a rival to TANAP project that is jointly implemented by Azerbaijan and Turkey, head of SOCAR Turkey Energy said in an interview with Trend.

"We do not see the Turkish Stream project as a rival to TANAP project," said Kenan Yavuz, head of SOCAR Turkey Energy, board member of Petkim petrochemical holding.

He added that TANAP's mission of delivering Azerbaijani gas to Europe is less likely to be affected by Turkish Stream.

Yavuz reminded that the final investment decision on Shah Deniz-2 project and major agreements concerning the construction of TANAP has already been signed.

TANAP's shareholders and buyers of gas are known, and main contractors are already at work to build the pipeline, he said. "TANAP also has strong political support from both countries: Azerbaijan and Turkey."

The TANAP project envisages the transportation of gas of Azerbaijan's Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey.

TANAP's initial capacity is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the rest of the volume to Europe.

The project's cost is estimated at $10-$11 billion.

Yavuz also said that TANAP is the most important part of the Southern Gas Corridor project which has an important role in EU energy policy and will increase supply security and diversity Turkish and European gas markets.

He said that Azerbaijan and Turkey, two brother countries are implementing the TANAP project.

"It is strategically important, because it strengthens already existing economic and political ties between Azerbaijan, Turkey and other countries in the supply chain."

TANAP makes Azerbaijan the second largest gas supplier to Turkey and alternative supplier to Europe, Yavuz said, adding that Turkey is the second largest shareholder with 19-percent share in the project for development of Shah Deniz field.

Kenan Yavuz said that by stimulating investments and creating new jobs and business opportunities, TANAP project will contribute to the social and economic development of countries in the supply chain.

Turkish Stream envisages transportation of gas from Russia to Turkey through the Black Sea. Russia's Gazprom company and Turkish BOTAS signed a memorandum of understanding on construction of the pipeline on Dec.1, 2014.

The pipeline's pumping capacity will be 63 billion cubic meters and it is planned to deliver around 50 billion cubic meters of this volume to the new gas hub on Turkish-Greek border.

It is also planned that the first line of the pipeline, with a pumping capacity of 15.75 billion cubic meters of gas per year, will be stretched to Turkey.

Edited by SI


Follow the authors on Twitter: @AygunBadalova, @rhafizoglu