TANAP delivers 2.39 billion cubic meters of gas to Turkey as of August

The amount of gas the Trans-Anatolian Natural Gas Pipeline (TANAP) has carried to Turkey has reached 2.39 billion cubic meters as of August, TANAP General Manager Saltuk Düzyol said.

"A total of 30%, corresponding to $450 million, of the revenue of $1.45 billion that will be generated when the total transmission capacity is reached, will belong to BOTAŞ [Turkish Petroleum Pipeline Corporation] every year. We predict that TANAP will reach a full transmission capacity of 16 billion cubic meters in two to three years," Düzyol told a group of journalists in Ankara yesterday.

The 1,850-kilometer TANAP forms the backbone of the Southern Gas Corridor, a project to increase and diversify European energy supply by bringing gas resources from the Caspian Sea: Shah Deniz 2 gas from Azerbaijan to Turkey and through Turkey to Europe markets.

"Turkey will also get tax revenues through that figure. A tax of $5.95 will be paid to Turkey for the transportation of 1,000 cubic meters of natural gas," Düzyol said. He noted that customs duty worth $14.3 million has been paid to Turkey for the 2.39 billion cubic meters of gas carried to the country so far, saying that duties are paid in every three months.

He further said that from June 2019 to June 2020, they have a commitment of 4 billion cubic meters of gas to BOTAŞ. "When gas flows to Europe begins, the capacity will rise to 16 billion cubic meters annually. When the full capacity transmission starts, Turkey will receive 6 billion cubic meters of it and the rest will flow to the EU."

He reiterated that they reached the position of supplying gas to Europe via TANAP as of the beginning of July and that they have been waiting for the completion of the Trans Adriatic Pipeline (TAP), which will be transporting this gas to Europe.

Yet, Düzyol stated that no commercial gas flow to Europe will be possible before October next year, adding: "However, we are in a position to supply gas at the moment."

The 4.5 billion euro ($4.92 billion) TAP will transverse Greece, Albania and the Adriatic Sea to reach Italy.

TANAP will carry 16 billion cubic meters of natural gas, starting from the Turkey-Georgia border. Turkey will receive 6 billion cubic meters of this gas via TANAP, while the remaining volume will be transported to Europe through TAP.

Dubbed the Silk Road of Energy, the historic TANAP project was officially launched on June 12 last year at a grand ceremony in the central Turkish city of Eskişehir.

Noting that the estimated investment price of the TANAP project has been reduced to under $6.5 billion, Düzyol continued: "The initial estimated investment price was $11.7 billion. We have made some serious savings. This is mainly because the project has been completed on time. Of course, due to the stagnation in international markets, Turkish contractors took great interest in the project and offered competitive prices. So, we had a serious price advantage. Our contractors were well chosen, and we worked with the right contractors."

Underlining that the EU will get the best of the TANAP project in addition to Turkey and Azerbaijan, Düzyol said, as a result, ultimate customers, especially Eastern European countries and Spain, Italy, Greece and Germany will both boost their supply security and achieve competitive environment in terms of dependence on single-seller countries. The project will help these countries, which were dependent on the Russian gas, bargain on prices.

According to Düzyol, with the production of additional export amounts, TANAP's capacity could rise up to 31 billion cubic meters. Thus, he said, new purchasers could be included in the project and the gas of other countries could be transmitted via TANAP.

Underlining that there are other natural gas resources in the region apart from Azeri gas, Düzyol continued: "There is potential in northern Iraq and the Eastern Mediterranean, which we can use and carry as Turkey. Turkey could use TANAP to bring its own gas to Turkey and then transport it to Europe by taking part in international consortia there."