EIB reveals details of loan for TANAP (Exclusive)
Baku, Azerbaijan, March 19
By Leman Zeynalova – Trend:
The loan of the European Investment Bank (EIB) for Trans Anatolian Natural Gas Pipeline (TANAP) project, envisaging transportation of Azerbaijani gas to Europe, will include two funding lines to two beneficiaries, a source in the bank told Trend.
“Subject to the completion of satisfactory legal documentation to the bank, the total approved EIB financing of up to $1.1 billion for the TANAP project includes two funding lines, i.e. up to $600 million for the participation of the Turkish BOTAS in TANAP and up to $500 million for the participation of the Azerbaijani Southern Gas Corridor CJSC,” said the source.
As for the terms of the loan, the source noted that this is subject to contract negotiations that will now take place.
“We cannot prejudge the outcome or timing of these,” said the source.
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).
TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction the gas will be delivered to Europe in early 2020.
The length of TANAP is 1,850 kilometers with an initial capacity of 16 billion cubic meters of gas. Around six billion cubic meters of this gas is meant to be delivered to Turkey, with the remaining volume to be supplied to Europe.
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