A long awaited plan by the European Union to import Caspian gas moved forward this week as construction work began on the Trans Anatolian Natural Gas Pipeline (Tanap) in Turkey.
Tanap is the central link in the EU-backed Southern Gas Corridor, a jigsaw of existing and planned pipelines designed to diversify Caspian energy export routes and reduce European dependence on Russian gas. Initially, the 3,500km SGC network will transport gas from the giant, BP-led Shah Deniz field in offshore Azerbaijan, but could in future draw supplies from other Caspian and central Asian countries and even the Middle East, changing the energy map of the whole region.
Involving seven countries and 11 companies, the marathon project has been described by BP as the global oil and gas industry’s “most significant and ambitious undertaking yet”.
The leaders of Turkey, Azerbaijan and Georgia attended a ceremony to mark the launch of Tanap’s construction in Kars on Tuesday, underscoring the pipeline’s importance as a boost to the region’s geopolitical significance as an international energy transit route.
Estimated to cost $10bn, Tanap will tie into the existing South Caucasus pipeline that already supplies Azerbaijani gas to Georgia and east Turkey, and transport gas over a distance of 1,850km to Turkey’s western border with the EU. From there, gas is expected to enter the planned Trans-Adriatic Pipeline crossing Greece and Albania to Italy.
BP bought a 12 per cent stake in Tanap late last year and will jointly own the pipeline in a partnership with Socar, Azerbaijan’s state oil company, and Botas, the Turkish oil and gas pipeline and trading group. Gas deliveries are expected to begin in 2019 and build to a rate of 16bn cubic meters a year.
Russia has questioned the feasibility of Tanap, which will bring Caspian gas into the European market for the first time. Vladimir Chizhov, Russia’s ambassador to the EU, has described the project as “extremely challenging from a technical point of view” and “exorbitantly expensive”.
Tanap is the central link in the EU-backed Southern Gas Corridor, a jigsaw of existing and planned pipelines designed to diversify Caspian energy export routes and reduce European dependence on Russian gas. Initially, the 3,500km SGC network will transport gas from the giant, BP-led Shah Deniz field in offshore Azerbaijan, but could in future draw supplies from other Caspian and central Asian countries and even the Middle East, changing the energy map of the whole region.
Involving seven countries and 11 companies, the marathon project has been described by BP as the global oil and gas industry’s “most significant and ambitious undertaking yet”.
The leaders of Turkey, Azerbaijan and Georgia attended a ceremony to mark the launch of Tanap’s construction in Kars on Tuesday, underscoring the pipeline’s importance as a boost to the region’s geopolitical significance as an international energy transit route.
Estimated to cost $10bn, Tanap will tie into the existing South Caucasus pipeline that already supplies Azerbaijani gas to Georgia and east Turkey, and transport gas over a distance of 1,850km to Turkey’s western border with the EU. From there, gas is expected to enter the planned Trans-Adriatic Pipeline crossing Greece and Albania to Italy.
BP bought a 12 per cent stake in Tanap late last year and will jointly own the pipeline in a partnership with Socar, Azerbaijan’s state oil company, and Botas, the Turkish oil and gas pipeline and trading group. Gas deliveries are expected to begin in 2019 and build to a rate of 16bn cubic meters a year.
Russia has questioned the feasibility of Tanap, which will bring Caspian gas into the European market for the first time. Vladimir Chizhov, Russia’s ambassador to the EU, has described the project as “extremely challenging from a technical point of view” and “exorbitantly expensive”.
Tuesday’s launch of Tanap’s construction has highlighted growing competition between the EU and Russia for influence over Turkish energy export routes.
In a move that took the EU by surprise, Russia scrapped the $40bn South Stream gas pipeline to Europe in favour of another project to ship gas exports to a new trading hub in western Turkey. Gazprom says the EU, having blocked South Stream with a barrage of regulatory obstacles, can figure out itself how to move Russian gas from the Turkish hub into Europe.
Turkey says that Tanap is not a rival to Turkish Stream and has pledged there will be no political obstacles to the project.
Time will tell if Russia tries to use Turkish Stream to undermine the EU’s Southern Gas Corridor diversification plan.
SOURCE
In a move that took the EU by surprise, Russia scrapped the $40bn South Stream gas pipeline to Europe in favour of another project to ship gas exports to a new trading hub in western Turkey. Gazprom says the EU, having blocked South Stream with a barrage of regulatory obstacles, can figure out itself how to move Russian gas from the Turkish hub into Europe.
Turkey says that Tanap is not a rival to Turkish Stream and has pledged there will be no political obstacles to the project.
Time will tell if Russia tries to use Turkish Stream to undermine the EU’s Southern Gas Corridor diversification plan.
SOURCE
