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Wood Mackenzie says what TANAP needs for future expansion

June 09/ 09:26

Baku. Any source for the expansion of the Trans Anatolian Natural Gas Pipeline (TANAP) will need the right combination of timing, political support and commercial attractiveness, Ashley Sherman, Principal Research Analyst – Caspian at UK-based Wood Mackenzie, a global energy, chemicals, renewables, metals and mining research and consultancy group told Trend.

"TANAP is now just days away from its launch ceremony. The project has made immense progress since 2013 – to keep to schedule and dramatically reduce costs to $8 billion. With TANAP construction so well-advanced, attention naturally turns again to future expansion to up to 31 billion cubic meters per year," he said.

Sherman noted that Turkey's ambition to become a transit hub is long-standing and TANAP expansion options still vary – from more Azerbaijani gas to the East Mediterranean and even Turkmenistan.

"However, to go ahead, any source will need the right combination of timing, political support and commercial attractiveness. Azerbaijani gas was originally viewed as the ideal expansion option for TANAP and TAP," he said.

The other advantage of expansion is for TANAP's shareholders, he said, adding that it will mean increased revenues and improved returns on a high-cost pipeline.

The ceremony of launch of TANAP will take place on June 12 in Turkish Eskisehir city.

TANAP will be laid from the Georgian-Turkish border to the western border of Turkey. TANAP together with Trans-Adriatic Pipeline (TAP) is a part of the Southern Gas Corridor, which provides for the transportation of gas from the Azerbaijani field Shah Deniz to Europe.

The initial capacity of TANAP is expected to be 16 billion cubic meters of gas per year. About six billion cubic meters will be supplied to Turkey, and the rest to Europe. After completion of the TAP, the gas will reach Europe in early 2020.

The share distribution in TANAP is as follows: Southern Gas Corridor CJSC - 51 percent, SOCAR Turkey Enerji - 7 percent, Botas - 30 percent, and BP - 12 percent.

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