Turkey Will Hold Talks with New Partners for TANAP, Yildiz Says
Turkey is planning to hold talks with new partner companies regarding Trans-Anatolian Pipeline (TANAP) project, which will enable Caspian gas to be shipped via Turkey's western borders. Turkish Energy Minister Taner Yildiz has said that the country will talk with one or two international companies in order to make a partnership agreement for TANAP project.
"The international companies are always interest in these kind of mega projects. If they want to publicise the process, the companies will announce their interests," Yildiz said in response to questions at the STEAM Energy Conference which took place in Istanbul, Turkey.
TANAP will strengthen Turkey's energy security as well as European Union's dependence on Russian natural gas. Currently, Russia supplies more than one third of the EU's natural gas needs via a network of pipelines. The 1,850 kilometres long projected pipeline is slated to carry 16 Bcm/year of gas from Azerbaijan's BP-operated Shah Deniz 2 gas field.
In early May, President of Azerbaijan’s state-owned energy company SOCAR President Rovnag Abdullayev said that Iran is interested in investing in TANAP, which can result in a sale of stake may be considered. Abdullayev said that TANAP shareholders could consider lucrative offers from Iran. SOCAR owns a 58% stake in TANAP, where Turkey's state owned pipeline company BOTAS has a 30% stake and UK's British Petroleum, a 12% stake.
In early May, European Bank for Reconstruction and Development (EBRD) has shown interest in the TANAP project. EBRD Energy Director Riccardo Puliti has said that the EBRD has provided €800 million for the pipelines that constitute the Southern Gas Corridor including Shah Deniz, Trans Adriatic Pipeline and the pipeline connecting Bulgaria and Greece, which were built to help diversify gas resources and suppliers to the European Energy Union.
The TANAP project will constitute 1,850 kilometres section of the 3,500km Southern Gas Corridor, which is widely supported by the EU as well as the United States. The $10-11 billion TANAP project will become operational in late 2018.
TURK STREAM, EAST MEDITERRANEAN
Turkish Energy Minister Taner Yildiz has also said that Turkey will not buy any extra amount of natural gas from Russia, via the proposed Turk Stream pipeline.
"One of the lines proposed in the Turk Stream, which will ship 15,7 Bcm/year of natural gas, will replace the Western Gas Pipeline contract, which will expire in coming years. The rest of natural gas which will amount about 46-47 Bcm/year will be offered to European Union energy market. If EU countries are interested with this amount, supply and demand will be matched. Otherwise, we're not planning to buy the rest of natural gas," Yildiz said.
Answering a question on Turkish-Iran natural gas price dispute, Yildiz said that the arbitration court decision can be announced later this month or early June. "Currently, Iran did not offer any new price for natural gas, we're waiting for the arbitration court," he said.
In a response to a question natural gas resource in the East Mediterranean, Turkish Energy Minister Taner Yildiz said that the LNG alternative in Egypt to ship natural gas to European markets will not be feasible.
"We're not expecting any Mediterranean gas to ship in LNG form to the world markets. With regards to freefall in oil prices from early last year, natural gas prices slumped dramatically in the world energy markets. So, in this context, LNG has not any competitive advantage," Yildiz said.
Murat Tinas