SOCAR, BOTAŞ to create new company for TANAP
By Sara Israfilbayova
The State Oil Company of Azerbaijan (SOCAR) and BOTAŞ plan to establish a joint venture to manage the Trans-Anatolian gas pipeline (TANAP) project.
Each party will own 50 percent of the shares of the joint company, Turkish media outlets reported, adding that the joint company will also be responsible for the safety of the gas pipeline.
“Southern Gas Corridor” CJSC has 51 percent share in TANAP project and SOCAR Turkey Enerji AS, a subsidiary of SOCAR in Turkey – 7 percent, BOTAŞ – 30 percent and BP – 12 percent.
SOCAR Turkey Energy has joined TANAP shareholders at the end of March this year. The company has purchased a share from the "Southern Gas Corridor" CJSC.
The Economy Ministry owns 51 percent of shares, SOCAR-49 percent.
The Southern Gas Corridor is one of the priority projects for
the EU and provides for the transportation of 10 billion cubic
meters of Azerbaijani gas from the Caspian region through Georgia
and Turkey to Europe.
At the initial stage, the gas to be produced as part of the Stage 2
of development of Azerbaijan's Shah Deniz field is considered as
the main source for the Southern Gas Corridor projects. Other
sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz development, the gas will
be exported to Turkey and European markets by expanding the South
Caucasus Pipeline and the construction of Trans Anatolian Natural
Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction natural gas will be delivered to Europe in early 2020.
The length of TANAP is 1,850 kilometers, with an initial capacity of 16 billion cubic meters of gas. Around six billion cubic meters of this gas is meant to be delivered to Turkey, with the remaining volume to be supplied to Europe.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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