Shah Deniz gas `to cost Turkey less than Russian gas`
Azerbaijani gas to be exported to Turkey via the Trans-Anatolian gas pipeline (TANAP) during the second phase of Shah Deniz field development will be 12 per cent cheaper than that imported from Russia, Turkish newspaper Hurriyet said.
According to the report, gas imported from Russia currently costs Turkey $460 per 1,000 cubic meters, while Azerbaijani gas costs $320 per 1,000 cubic meters.
The price of Azerbaijani gas to be transported via TANAP will be higher than the current one due to European countries` demand for gas from Shah Deniz 2, Hurriyet reported.
On June 26, Azerbaijan and Turkey signed an intergovernmental agreement on the TANAP project, which aims to construct a pipeline from the eastern border of Turkey to the country`s western border. Turkish state-owned energy company BOTAS has a 20 percent stake in TANAP, while Azerbaijan`s Socar holds 80 percent in the project. Initial capacity of the pipeline is expected to be 16 billion cubic meters per year. About 6 billion cubic meters of the volume will go to Turkey, while the rest will be transported to Europe.
Producers in the Shah Deniz II field, led by BP and Statoil, plan to ship 10 billion cubic meters a year through Turkey into Europe from 2017 or 2018.
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