Wednesday August 17 2022

TANAP consortium's revenues tripled in 2020

6 July 2021 13:50 (UTC+04:00)
TANAP consortium's revenues tripled in 2020

By Vugar Khalilov

Consortium of the Trans-Anatolian gas pipeline (TANAP), that takes Azerbaijan’s natural gas to European markets via Turkey, tripled its revenues in 2020.

The net profit of the pipeline consortium TANAP Natural Gas Transmission Company reached $160 million in 2020 versus net loss of $145 million in 2019, Southern Gas Corridor CJSC has reported.

The consortium's revenues tripled year-on-year in 2020, reaching $682 million, while the cost of sales increased by 31pct (reaching $133 million). The company made other revenues worth $1.4 million and its interest income was $353,000.

Furthermore, the consortium's total and administrative expenses in 2020 amounted to $192 million (growth by 2.6 times), financial expenditures - $197 million (6.5-percent-growth). The net loss from the exchange rate difference in 2020 amounted to $550,000 (growth in 2.6 times).

However, there was 0.5-percent-decline in 2020 in TANAP Natural Gas Transmission Company’s assets that were worth $6.7 billion, including short-term assets - $141 million, long-term assets - $6.5 billion.

In the structure of long-term assets, the cost of the pipeline is $ 6.3 billion (growth by 52.3pct), unfinished construction - $142 million (decline by 17 times).

The consortium's commitments for early 2021 amounted to $3.9 billion (a decrease of 4.8pct), including short-term - $9.6 million, long-term - $2.7 billion.

The capital of the consortium by late 2020 was $2.9 billion (5.7-percent-increase).

It should be noted that Azerbaijan exported 5 billion cubic meters of gas to Turkey via the Trans-Anatolian gas pipeline in 2020.

According to the forecasts of The State Oil Company of Azerbaijan Republic (SOCAR), the activity of the TANAP gas pipeline in Turkey covers 12 percent of Turkey's gas needs.

The ceremony of commissioning the first phase of the TANAP gas pipeline (from the Georgian-Turkish border to Eskisehir) took place in June 2018, and commercial deliveries of Azerbaijani gas to TANAP began in June 2021. TANAP's construction cost $6.5 billion.

The 1.85 thousand km long pipeline is intended for transportation of Azerbaijani gas from the Shah Deniz field within the framework of Stage-2 from the Georgian-Turkish border to the western border of Turkey.

The capacity of the pipeline is 16 billion cubic meters, of which 10 billion is intended for Europe, 6 billion cubic meters for the western regions of Turkey. In the long run, the capacity of the pipeline will reach 24 billion cubic meters of gas per year, and then - up to 31 billion cubic meters.

The shareholders of the TANAP project are: SOCAR (51 percent), SOCAR Turkiye Enerji (7 percent), BOTAS (30 percent), BP (12 percent). For 15 years of operation, this pipeline will bring TANAP shareholders a total of $ 1.45 billion in annual revenues, of which 58 percent will go to Azerbaijan.

Follow us on Twitter @AzerNewsAz

Latest View more