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BAKU, Azerbaijan, Dec.9
By Leman Zeynalova – Trend:
More Azerbaijani gas and cheaper liquefied natural gas (LNG) options for European countries may force other suppliers to lower their gas prices, Swapnil Babele, senior analyst at Rystad Energy, the independent energy research and consulting firm headquartered in Norway with offices across the globe, told Trend.
The expert was commenting on the recent opening of European connection of the Trans Anatolian Natural Gas Pipeline (TANAP), the longest segment of the Southern Gas Corridor, which will for the first time bring Azerbaijani gas to Europe.
Babele pointed out that TANAP will be delivering gas from Shah Deniz-2 to Turkey, as well as to South Eastern Europe via the Trans Adriatic Pipeline.
“Initial volumes expected to transport are around 16 billion cubic meters per year, six billion cubic meters per year going to Turkey and rest to Europe. It will help Turkey and European countries near to it (Greece, Bulgaria) to partly reduce their dependence on a single source and become more energy secure. The pipeline will help Turkey to become a regional energy hub for South Eastern European countries looking for Azerbaijani gas. More Azerbaijani gas and cheaper LNG options for these countries may force other suppliers to lower their gas prices,” said the senior analyst.
Babele noted that Turkey, which was one of the biggest importers of Russia gas in 2018 (It imported around 24 billion cubic meter gas from Russia), has already reduced its import volumes around 34 percent in first nine months of 2019 as compared to 2018 due to more gas supplies from Azerbaijan and LNG imports.
“Turkey is not the only country looking to diversify away from a single supplier - countries in South East Europe such as Greece and Bulgaria have also started to look towards LNG and other sources to import gas,” added the expert.
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.
The opening ceremony of the TANAP-Europe connection was held on Nov. 30, 2019 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.
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