TANAP project cost may jump

Due to some changes in the final route of the Trans-Anatolian gas pipeline project (TANAP), cost of the project will be increased by $3 billion - up to $10 billion, the Zaman newspaper quotes SOCAR Turkey Energy head, board member of the Petkim Petrochemical Complex, Kenan Yavuz as saying on Friday.

He said no matter what the TANAP project cost is, its implementation is very important for Turkey because due to the project the country will receive gas at a more affordable price.

Thus, Azerbaijan's investments in Turkey from 2008 to 2018 will increase from the expected $17 billion to $19-$20 billion.

SOCAR partners on the Shah Deniz development project previously expressed an interest in participating in the TANAP project. According to preliminary data, the partners intend to distribute a 29 per cent share in TANAP as follows: Statoil and BP are to receive 12 per cent each and Total would get five per cent.

Presently, a 20-percent share in TANAP belongs to Turkish BOTAS and TPAO, while 80 percent is owned by the State Oil Company of Azerbaijan (SOCAR). SOCAR intends to retain 51 percent of the equity in the project. Turkey will keep 20 percent of the equity.

TANAP project envisages construction of the pipeline from the eastern border of Turkey to the country's western border to supply gas from Azerbaijani Shah Deniz gas field to Europe through Turkey. The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About six billion cubic meters will be delivered to Turkey, and the rest - to Europe.


/Trend/