TANAP gas pipeline to receive $3.12B international loan

Published 27.04.2016 23:32
Updated 27.04.2016 23:33
TANAP gas pipeline to receive $3.12B international loan

Project loans totaling $3.12 billion provided by three international companies for the Trans-Anatolian Natural Gas Pipeline (TANAP) project is expected to be finalized this summer. World Bank authorities will hold a meeting on July 7 to approve a loan worth $1 billion, which will be provided for the TANAP project, making major contributions to the security of Europe and Turkey's natural gas supply. Pointing to the bank's United Project Information Document dated Jan. 11, 2016, World Bank authorities said they need approval from the bank's senior management to provide a $1 billion loan to the Petroleum Pipeline Corporation (BOTAŞ).

The United Project Information Document revealed that the European Investment Bank has allocated a fund worth $1.12 billion for the TANAP and the International Reconstruction and Development Bank could provide $1 billion for the project, which will carry Azeri natural gas to Europe. Although there is not a certain schedule for these two loan agreements, it is expected to become clear in accordance with the World Bank's decision. World Bank authorities placed emphasis on the importance of the 1,825-kilometer TANAP for the 3,500-kilometer Southern Gas Corridor (SGC), which will reach Italy from Azerbaijan. They said the diversification of natural gas resources will boost energy safety in the region and support sustainable growth, adding: "Nearly $45 billion worth of investment is needed for the SGC in the entirety of the region, and the cost of the TANAP project has been determined to be $9.8 billion."

The TANAP is expected to be completed in July 2018. The project will carry 6 billion cubic meters out of 16 billion cubic meters of Azeri natural gas to the domestic market through Georgia and the remaining 10 billion cubic meters to the European market through Turkey, Greece, Albania and Italy. The project's total capacity is expected to rise to 23 billion cubic meters in 2023 and 31 billion cubic meters in 2026.

TANAP General Manager Saltuk Düzyol said last week that they will do their best to put TANAP in effect before June 2018, adding that bids worth nearly $4.5 billion were completed and relevant contracts were signed as a part of the project. The State Oil Company of the Azerbaijan Republic (SOCAR), BOTAŞ and British Petroleum (BP) have shares worth 58 percent, 30 percent and 12 percent, respectively.

Share on Facebook Share on Twitter