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Released July 23, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe has secured a major new source of natural gas as the developers behind the Trans Anatolian Natural Gas Pipeline (TANAP) said it is now ready to deliver gas from Azerbaijan to Europe via Turkey.
The new alternative is seen as vital to Europe's energy security as it seeks to diversify gas supplies away from Russia, on which it relies for about 30% of its total demand. TANAP is the major segment of the wider $30 billion Southern Gas Corridor (SGC) project. The Southern Gas Corridor consists of the following components: the Shah Deniz gas field; the South Caucasus Pipeline and its expansion through Azerbaijan and Georgia to Turkey; the construction of the Trans-Anatolian Pipeline (TANAP) through Turkey to Greece; and the construction of the Trans-Adriatic Pipeline (TAP) through Greece, Albania and the Adriatic Sea to southern Italy.
TANAP will bring natural gas produced from Azerbaijan's Shah Deniz-2 gas field, and other areas of the Caspian Sea, to Turkey and onto Europe. Ultimately it will deliver 1,550 million cubic feet per day (mmcfd) of Shah Deniz 2 gas across Turkey, divided into approximately 580 mmfcd for domestic Turkish use and onward export of 970 mmcfd to southern Europe.
TANAP runs 1,850 kilometres (km) from the Turkish border with Georgia to the Greek border, where it will connect to the 878-km long TAP pipeline, still under construction, which will carry the gas to European nations. Initially estimated to cost $11.7 billion, the project was realised for $7 billion. TANAP stakeholders include Southern Gas Corridor CJSC, a joint venture of SOCAR (49%) and the Ministry of Economy of the Republic of Azerbaijan (51%), BOTAS (30%), BP (12%) and SOCAR Turkey Energy A.S (7%).
Rovnag Abdullayev, President of SOCAR, said: "The Southern Gas Corridor and TANAP is reality now. We launched natural gas delivery via TANAP to Turkey in a ceremony attended by the distinguished presidents of Azerbaijan and Turkey last year. Today TANAP is ready to supply natural gas to Europe and we are expecting the work on TAP pipeline to be completed. Azerbaijan has demonstrated to the world that we are more than capable of delivering complex transnational projects both at home and abroad in a timely fashion with high efficiency. During the implementation of TANAP, SOCAR and its partners saved about $5 billion, reducing the overall cost of the project by 40%."
Speaking last month, European Commission Vice President Maro efčovič in charge of the Energy Union spoke about the realisation of TANAP. "By helping diversify our energy suppliers and routes, the Southern Gas Corridor is strategically important for the EU's energy security, including in the most vulnerable parts, such as Southeast Europe and southern Italy. We all stand to gain from this 'bridge' between the Caspian region and the EU market. It is in our joint interest to make it a success. Our long-term objective is to create a pan-European energy market based on free trade, competition and diversified supplies, sources and routes. I trust that the construction of the TAP, a European section of the Southern Gas Corridor, will continue to progress also thanks to the continuous support of the three national governments involved, so that Caspian gas reaches the EU by 2020."
At the start of this year, Industrial Info reported that a key part of the SGC project--the Trans Adriatic Pipeline (TAP)--had secured final financing of 3.9 billion-euro ($4.5 billion). The financing for TAP was the largest project finance agreed for a European infrastructure project in 2018. For additional information, see January 22, 2019, article - Trans Adriatic Pipeline Gets $4.5 Billion EU Boost.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The new alternative is seen as vital to Europe's energy security as it seeks to diversify gas supplies away from Russia, on which it relies for about 30% of its total demand. TANAP is the major segment of the wider $30 billion Southern Gas Corridor (SGC) project. The Southern Gas Corridor consists of the following components: the Shah Deniz gas field; the South Caucasus Pipeline and its expansion through Azerbaijan and Georgia to Turkey; the construction of the Trans-Anatolian Pipeline (TANAP) through Turkey to Greece; and the construction of the Trans-Adriatic Pipeline (TAP) through Greece, Albania and the Adriatic Sea to southern Italy.
TANAP will bring natural gas produced from Azerbaijan's Shah Deniz-2 gas field, and other areas of the Caspian Sea, to Turkey and onto Europe. Ultimately it will deliver 1,550 million cubic feet per day (mmcfd) of Shah Deniz 2 gas across Turkey, divided into approximately 580 mmfcd for domestic Turkish use and onward export of 970 mmcfd to southern Europe.
TANAP runs 1,850 kilometres (km) from the Turkish border with Georgia to the Greek border, where it will connect to the 878-km long TAP pipeline, still under construction, which will carry the gas to European nations. Initially estimated to cost $11.7 billion, the project was realised for $7 billion. TANAP stakeholders include Southern Gas Corridor CJSC, a joint venture of SOCAR (49%) and the Ministry of Economy of the Republic of Azerbaijan (51%), BOTAS (30%), BP (12%) and SOCAR Turkey Energy A.S (7%).
Rovnag Abdullayev, President of SOCAR, said: "The Southern Gas Corridor and TANAP is reality now. We launched natural gas delivery via TANAP to Turkey in a ceremony attended by the distinguished presidents of Azerbaijan and Turkey last year. Today TANAP is ready to supply natural gas to Europe and we are expecting the work on TAP pipeline to be completed. Azerbaijan has demonstrated to the world that we are more than capable of delivering complex transnational projects both at home and abroad in a timely fashion with high efficiency. During the implementation of TANAP, SOCAR and its partners saved about $5 billion, reducing the overall cost of the project by 40%."
Speaking last month, European Commission Vice President Maro efčovič in charge of the Energy Union spoke about the realisation of TANAP. "By helping diversify our energy suppliers and routes, the Southern Gas Corridor is strategically important for the EU's energy security, including in the most vulnerable parts, such as Southeast Europe and southern Italy. We all stand to gain from this 'bridge' between the Caspian region and the EU market. It is in our joint interest to make it a success. Our long-term objective is to create a pan-European energy market based on free trade, competition and diversified supplies, sources and routes. I trust that the construction of the TAP, a European section of the Southern Gas Corridor, will continue to progress also thanks to the continuous support of the three national governments involved, so that Caspian gas reaches the EU by 2020."
At the start of this year, Industrial Info reported that a key part of the SGC project--the Trans Adriatic Pipeline (TAP)--had secured final financing of 3.9 billion-euro ($4.5 billion). The financing for TAP was the largest project finance agreed for a European infrastructure project in 2018. For additional information, see January 22, 2019, article - Trans Adriatic Pipeline Gets $4.5 Billion EU Boost.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
