TANAP to increase competitiveness of Azerbaijan's gas - expert

Oil&Gas Materials 26 November 2019 14:00 (UTC +04:00)
TANAP to increase competitiveness of Azerbaijan's gas - expert

BAKU, Azerbaijan, Nov. 26

By Anastasia Savchenko - Trend:

Opening of the second section (Phase 1) of the Trans-Anatolian Natural Gas Pipeline (TANAP) will increase the competitiveness of Azerbaijani gas, because contracts for the supply of this gas to Turkey in the volume of six billion cubic meters per year and one billion cubic meters to Bulgaria and Greece, each, were signed earlier, Igor Yushkov, the leading analyst at the Moscow-based National Energy Security Fund, an expert at the Financial University under the Government of the Russian Federation, told Trend.

“Azerbaijani gas in the Turkish market will have to compete with Iranian, Russian gas,” the expert explained.

Yushkov emphasized that in the context of economic recession in Turkey, due to which Ankara reduced gas consumption in general, competition is becoming particularly fierce.

“This situation is positive for Turkey, since competition can reduce prices,” the expert said. “In addition, Turkey will receive money for gas transit. For Azerbaijan, access to the Turkish market and the region of Bulgaria and Greece is positive.”

Yushkov reminded that at the end of 2017, Azerbaijan had to return to gas purchases from Russia’s Gazprom company in order to replenish its supplies to the Azerbaijani market.

“Some 349 million cubic meters of gas were purchased in 2017, and 999 million cubic meters of gas in 2018,” the expert said. “Azerbaijan needs to supply major volumes of natural gas to Turkey, Bulgaria, Greece and in the future to Italy, therefore, there is a possibility of increasing gas production.”

The opening ceremony of the Phase 1 of the Trans-Anatolian Gas Pipeline (TANAP) will be held on Nov. 30, 2019. The opening ceremony will take place in Ipsala, Edirne province of Turkey.

In this area, near the Greek border, TANAP is connected to the Trans-Adriatic Pipeline (TAP), through which natural gas from Azerbaijan will be delivered to European countries.

Opening ceremony of TANAP's Phase 0 took place on June 12, 2018, in the Turkish province of Eskisehir, and commercial gas deliveries to Turkey began in late June 2018.

The volume of gas transportation to Turkey via TANAP has reached 3.08 billion cubic meters (bcm) since the start of commercial gas supplies on June 30, 2018 as of late October 2019.

The initial capacity of TANAP, which is the main segment of the Southern Gas Corridor, is 16 billion cubic meters of gas.

Around six billion cubic meters of this gas will be supplied to Turkey while the remaining volume - to Europe. After the completion of the Trans Adriatic Pipeline (TAP) construction, gas will be supplied to Europe in early 2020.

The share distribution of TANAP shareholders is as follows: Southern Gas Corridor CJSC - 51 percent, SOCAR Turkey Enerji - 7 percent, Botas - 30 percent, BP - 12 percent.


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