Costs for TANAP fall due to price drops
By Aynur Karimova
The cost of constructing the Trans-Anatolian pipeline (TANAP) has dipped 20-25 percent from original forecasts due to a reduction in prices.
This was stated by Rovnag Abdullayev, the head of Azerbaijan's state energy company SOCAR, on November 10.
“We had good tender results, in particular for pipe purchases. This allowed us to lower our project costs,” he told journalists.
The capital costs of the TANAP project are expected to stand at $9.5 billion.
TANAP envisages the transportation of gas from Azerbaijan’s Shah Deniz field on the Georgian-Turkish border to the western borders of Turkey. TANAP’s initial capacity is expected to reach 16 billion cubic meters of gas per year. Some six billion cubic meters of this gas will be delivered to Turkey and the rest will go to Europe.
BP and the TANAP consortium signed on March 13 a shareholder agreement, according to which, BP will become one of the shareholders of TANAP. The agreement is one of the main documents proclaiming BP’s ownership of a stake in the TANAP project.
Following the completion of a legal implementation procedure, TANAP’s shareholder list will be as follows: SOCAR, 58 percent; Botas, 30 percent; and BP, 12 percent.
Abdullayev went on to add that SOCAR would complete the welding work on the 50-kilometer-long section of the TANAP project by late 2015.
He said all the tender procedures for constructing the 1,337-kilometer-long section of the pipeline had been completed and construction work had already begun.
“Welding work is underway on all sections of the pipeline,” Abdullayev noted, adding that the work was on schedule and TANAP would be ready to supply gas in the first half of 2018.
The contractors for constructing TANAP’s 1,337-kilometer-long onshore section are Fernas Insaat A.S., Sicim-Yuksel-AKKORD Adi Ortakligi, and TEKFEN Insaat ve Tesisat A.S. These companies will build the section running up to the city of Eskisehir.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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