Turkey, Azerbaijan to sign gas pipeline deal in April

PanARMENIAN.Net - Azeri state energy company SOCAR, 80 percent shareholder in the Trans Anatolian Gas Pipeline (TANAP) project to carry Azeri gas via Turkey to Europe, aims to sign necessary agreements involving the two governments in March or April, its chairman said, according to Reuters.

Rovnag Abdullayev said on Monday, February 13 he wanted to see companies that are active in Azerbaijan becoming involved in the project and said European firms were interested in taking part in TANAP, which is seen starting operations in 2017.

"We are talking to BP, Statoil and Total and want their gas to be in this project but SOCAR will remain as the main shareholder, leader and operator of this project," Abdullayev said.

The project, seen costing $5 billion-$7 billion, will pipe gas from Azerbaijan's Shah Deniz II field. It is planned to have an initial transfer capacity of 30 billion cubic metres (bcm) a year, according to officials, but will at first carry 16 bcm a year.

Of the project's initial capacity, 6 bcm a year is to be used in Turkey and the remaining 10 bcm will be exported to Europe, the SOCAR chairman said.

The Azeri state energy company is also in interested bidding for the sale of Istanbul's gas grid, IGDAS, with a local partner, he said.

"We already run gas distribution in Azerbaijan and Georgia, and this business requires expertise," Abdullayev said. "We are planning to bid in the IGDAS tender in Istanbul with a Turkish partner," he added.