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TAP may get another source of funding (Exclusive)

Oil&Gas Materials 22 March 2018 15:36 (UTC +04:00)

Baku, Azerbaijan, March 22

By Azad Hasanli – Trend:

The Black Sea Trade and Development Bank (BSTDB) may be involved in financing the Trans Adriatic Pipeline (TAP), the bank told Trend March 22.

"Currently, we are negotiating with the Southern Gas Corridor CJSC and TAP AG Consortium to find out how we can help implement this project," the bank said. “The Southern Gas Corridor project itself is very significant for us as it directly affects five of 11 BSTDB member-states, while the rest – indirectly. So, we hope to give big funds for TAP."

BSTDB has been already involved in financing various stages of the Southern Gas Corridor project. Thus, the bank provided Lukoil with a loan worth $60 million within the Stage 2 of the Shah Deniz gas condensate field development project. Today, Shah Deniz Stage 2 is the main source of gas, which will be supplied to Turkey and further to Europe via the Southern Gas Corridor.

Moreover, in 2016 the bank additionally allocated $30 million for SOCAR Turkey Energy, which is involved in the construction of the Trans-Anatolian Natural Gas Pipeline (TANAP).

The Southern Gas Corridor, worth over $40 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas sources. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At an initial stage, the gas to be produced in 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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