TANAP, TAP likely to justify their investments, analyst says

Oil&Gas Materials 16 February 2018 12:08 (UTC +04:00)

Baku, Azerbaijan, Feb. 16

By Gulgiz Muradova - Trend:

The Trans Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline, which are part of the Southern Gas Corridor (SGC), will most likely justify the investments made, said Sohbet Karbuz, Director of Hydrocarbons, Mediterranean Energy Observatory (OME), France told Trend.

He emphasized that the Southern Gas Corridor (SGC) is an important project for the gas supply security of the European Union.

"The project will allow the EU to diversify from Russian gas. The SGC aims to bring Caspian, Central Asian, Middle Eastern and East Mediterranean gas into European markets. So, TANAP-TAP route is a part of the SGC concept, not the whole," Karbuz said.

He reminded that TANAP will have initially 16 billion cubic meters a year capacity and will be scalable up to billion cubic meters a year, while 10 billion cubic meters of the initial capacity will be transported to Europe.

"It will enable a non-Russian supply source and route to the countries that want to diversify away from Russian gas," he said.

Karbuz further stressed that companies in the TANAP and TAP projects surely made their calculations very carefully before taking the final investment decisions and the projects will most likely justify the investments made.

The Southern Gas Corridor is one of the priority projects for the EU and provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

At an initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Shah Deniz Stage 2, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).


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