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Azerbaijan to invest $6bn in TANAP

30 June 2016 11:23 (UTC+04:00)
Azerbaijan to invest $6bn in TANAP

By Fatma Babayeva

Expenditures of the Southern Gas Corridor CJSC on the Trans Anatolian Natural Gas Pipeline (TANAP) construction project will exceed $6 billion.

The statement was made by a senior official of the Azerbaijan’s state oil company SOCAR in an interview with Trend on June 30.

“Expenditures of the Southern Gas Corridor CJSC, the main share in which belongs to the government of Azerbaijan, will amount to $6.2 billion by 2020,” said the representative of SOCAR, which owns the remaining 49 percent in this company.

The Southern Gas Corridor CJSC acts as an operator of the project, which includes, in particular, the TANAP project worth $9.2 billion.

“Nearly a quarter of the planned investments - more than $2 billion - has been already spent during the TANAP construction,” SOCAR representative said. “The project is running in accordance with schedule.”

TANAP pipeline is a Turkish leg of the Southern Gas Corridor envisaging transportation of gas from Azerbaijani Shah Deniz field from the Georgian-Turkish border to the western border of Turkey. In Turkish-Greece border, it will join to Trans-Adriatic Pipeline (TAP) to carry the Caspian gas further to the European market.

Reserves of Shah Deniz gas and condensate field are estimated at 1.2 trillion cubic meters. Within the framework of Shah Deniz 2 project realization, the annual output of the natural gas will increase from 9 billion cubic meters (first phase) to 16 billion cubic meters (second phase).

The gas extracted from the given field is expected to reach Turkey in 2018, and Europe around early 2020.

The country will export 6 billion cubic meters a year of Shah Deniz gas to Turkey and 10 billion cubic meters to the European market Europe.

The shareholders of TANAP are SOCAR (58 percent), Botas (30 percent) and BP (12 percent), whilst TAP’s shareholders are BP (20 percent), SOCAR (20 percent), Snam S.p.A (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).

The SGC is one of the biggest construction projects of our times with a value of $40 billion.

The realization of this pipeline project will contribute to enhancing the EU’s energy security and diversification of its gas supply routes. In addition, it will boost gas competition on the European market.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

Follow us on Twitter @AzerNewsAz

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