TANAP to receive $2 billion in loan
By Fatma Babayeva
The Trans-Anatolian gas pipeline, which is designed to transport Azerbaijani gas to the European markets as part of the Southern Gas Corridor, will receive $2 billion to get implemented.
The World Bank will allocate $1 billion for the construction of the TANAP gas pipeline, Turkish Huriyyet newspaper reported on April 25.
The European Investment Bank is also expected to allocate $1.07 billion for the project on long-term basis and perhaps, under the state guarantee.
Last December, the European Bank for Reconstruction and Development head of the energy issues for Russia, the Caucasus and Central Asia, Tolga Ergyuven said that the bank was discussing with the shareholders of the TANAP consortium about financing the project.
The pipeline will be beneficial not only for Azerbaijan but also to the transit countries.
TANAP pipeline fully meets the interests of Turkey. It is significance lies in the fact it is controlled by Baku and Ankara, said Yigit Bulut, the chief adviser to Turkish President Recep Tayyip Erdogan to the TRT Haber TV channel. He added that the pipeline will turn Turkey into an energy hub in the region.
In addition, Saltuk Duzyol, TANAP General Manager said to Azertac last week that all opportunities will be used for commissioning TANAP before June 2018.
He added that a tender with an approximate cost of $4.5 billion is complete and agreements have been signed within the framework of the project. So far, welding of pipes on the 440-kilometer section of the pipeline has been finalized.
The TANAP pipeline project envisages transporting Azerbaijani Shah Deniz gas from the Georgian-Turkish border to the western border of Turkey.
Shah Deniz gas will be supplied to Turkey in 2018, and after the completion of the Trans Adriatic Pipeline, the Azerbaijani gas will be transported to Europe roughly at the beginning of 2020.
SOCAR owns 58 percent stake in TANAP project while Botas and BP have 30 and 12 percent stakes respectively.
The Southern Gas Corridor included to the list of priority projects for the EU. It provides transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to Europe via Georgia and Turkey.
At the initial stage, the gas will be produced within the framework of developing second phase of Azerbaijani gas condensate field Shah Deniz which is considered the main source for the Southern Gas Corridor.
Other gas sources can be connected to the pipeline at the later stages.
The gas produced within the second stage of the development will be exported to Turkey and to European markets through the expansion of the South Caucasus gas pipeline and the construction of TANAP and TAP.
Moreover, TAP pipeline envisages transporting Shah Deniz gas from Greek-Turkey border to Southern Italy. The pipeline's construction is planned to start in May 2016 while its planned commissioning will happen in 2019.
TAP's initial capacity will be 10 billion cubic meters of gas a year but this volume will be expandable in future.
Overall, the realization of the SGC will contribute to enhancing the EU’s energy security and diversification of its gas supply routes.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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