TANAP pipeline deal to be signed soon

Turkish officials have revealed that an agreement over the Trans-Anatolian natural gas pipeline project (TANAP) is to be signed next week by the governments of Turkey and Azerbaijan.

The TANAP pipeline is set to cost somewhere in the region of US$ 5 to US$ 7 billion, with construction expected to begin at the end of 2013 or the beginning of 2014. Once complete, the pipeline will transport an estimated 16 billion m³ of natural gas from the Shah Deniz II field in Azerbaijan.

10 billion m³ of natural gas will be exported to of Europe, whilst Turkey will retain the remain 6 billion m³.

Reuters quoted one Turkish official as saying that, “The work has entered its final stage. The inter-governmental agreement is expected to be signed in Istanbul next week.”

Azerbaijan’s state oil company, SOCAR holds an 80% stake in the project, with the remaining 20% being held by the Turkish government. Sources reported earlier in the year that Turkey might consider raising its stake.

Some analysts have warned that the TANAP project could harm efforts to bring the Nabucco pipeline to fruition. The € 7.9 billion Nabucco pipeline is planned to deliver to Europe approximately 31 billion m³ of natural gas from the Caspian and Middle East.

Edited from various sources by David Bizley

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