October 19, 2017
The European Bank for Reconstruction and Development (EBRD) approved Wednesday a $500 million loan to help finance construction of the $8.6 billion Trans-Anatolian Natural Gas Pipeline (TANAP), Kallanish Energy reports.
The project will deliver “crucial energy supplies from the Caspian Sea through to Europe along the Southern Gas Corridor (SGC), and make an important contribution to the energy security and diversification (in Europe),” the EBRD said.
The 1,850-kilometer (1,150-mile) line accounts for over half of the 3,500 km (2,174-mile) SGC pipeline system, and will transport 16 billion cubic meters per year (Bcm/y – 564.8 billion cubic feet, Bcf/y) by 2020.
Turkey will consume 6 Bcm/y (211.8 Bcf) and the remaining 10 Bcm/y (353 Bcf/y) have already been contracted by several European gas traders, mostly in the Italian market.
Some $1.4 billion of financing loans were granted last year for TANAP — $800 million from the World Bank and $600 million from the Asian Infrastructure Investment Bank (AIIB). The European Investment Bank (EIB) is considering to finance $2 billion of the project, but its final decision is due next month.
In December 2016, the AIIB said the funding breakdown for TANAP included $2.1 billion from a borrower, $3 billion from other commercial borrowings and $2.1 billion from international financial institutions, including the EBRD and EIB.
The Azeri natural gas will be produced from the Shah Deniz 2 – one of the world’s largest gas fields — developed by a BP-led consortium. First gas flows from TANAP is planned for 2018, with the project currently on schedule.
TANAP is 58% owned by Azerbaijan’s state-oil company, SOCAR, 30% by BOTAS and 12% by BP.
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