Steel pipe contract signed for Turkish-Azeri pipeline
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Turkish and Azerbaijani companies and government officials inked a contract to supply the steel pipe for a planned major natural gas pipeline project between the two countries on Tuesday.
Turkey's capital Ankara hosted a ceremony of signing agreements for supply of pipes for the construction of the Trans-Anatolian (TANAP) gas pipeline project.
Turkish steel pipe producers Tosçelik, Borusan Mannesmann, Erciyas Boru, Emek, Umran and Noksel had previously won the tender to supply steel pipes for the planned TANAP.
The project aims to carry the rich gas resources of Azerbaijan to energy-hungry European countries.
Representatives from the supplier companies met senior Turkish government officials, including Prime Minister Ahmet Davutoglu and Energy Minister Taner Yildiz, along with State Oil Company of Azerbaijan Republic (SOCAR) President Rovnag Abdullayev on Tuesday in Ankara.
Tuesday's contract covers the supply of 1800 km steel pipes for the construction of the TANAP project over a four year period.
The Turkish companies will supply approximately 1.2 million t of steel pipe for TANAP - 80% of the total - and earn an estimated US$ 3 billion.
China's Baosteel will provide the remainder of the pipes.
The initial capacity of the pipeline is expected to reach 16 billion m3/yr. Approximately 6 billion m3 of the volume will be allocated to Turkey, while the rest will be transported to Europe. The first flow of gas to Turkey is scheduled for the second half of 2018, and Ankara plans to start pumping the Azeri gas to Europe in 2019.
The contract signings come a year after a decision to establish a consortium to build a gas pipeline to supply gas from the Shah Deniz field to Europe through Turkish territory. Azerbaijan and Turkey signed an intergovernmental agreement on TANAP in June 2012.
Edited from various sources by Elizabeth Corner
Sources: Today's Zaman, Azer News
Read the article online at: https://www.worldpipelines.com/business-news/15102014/steel-pipe-contract-signed-for-turkish-azeri-pipeline/
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