Turkey inks deal to raise involvement in TANAP and Shah Deniz projects

Turkey inks deal to raise involvement in TANAP and Shah Deniz projects

Turkey inks deal to raise involvement in TANAP and Shah Deniz projects

Turkish Prime Minister Recep Tayyip Erdoğan (C) examines a mini model of the TANAP project with Energy Minister Taner Yıldız (2nd L) right beside him.

Turkey has signed deals to increase its stakes in the Trans-Anatolian gas pipeline (TANAP) and the Shah Deniz projects, with a ceremony attended by Prime Minister Recep Tayyip Erdoğan, marking another step towards its long-lasting dream of becoming an energy hub.

The Turkish Petroleum Corporation (TPAO) has acquired a 10 percent share from French energy giant Total and raised its total share in the consortium operating Shah Deniz gas field.
Energy Minister Taner Yıldız said the TPAO would pay $1.45 billion to Total to raise its share from 9 to 19 percent.

Turkish pipeline company BOTAŞ has inked a separate agreement with Azeri state-owned energy company SOCAR, increasing its share to 30 percent from 20 percent.

The Shah Deniz field in the Caspian Sea, one of the world’s largest gas fields, feeds the South Caucasus Pipeline (also known as the Baku-Tiflis-Erzurum Pipeline) and the TANAP, which is planned carry Azeri gas both to Turkey and to other markets in Europe.

In a speech delivered at the ceremony, Erdoğan said that both realized and planned energy projects would shape the economic and social landscape of the region that Turkey.

“Turkish is a country that rises with the aim of becoming an energy hub. As part of this aim, we aim to make Ceyhan the top terminal of the East Mediterranean and the second busiest terminal in Europe after Rotterdam,” he added.

 “Energy-related developments in the East Mediterranean, Iraq and Caspian regions have reinforced our country’s position as energy hub,” Erdoğan said, underlining that Turkey had become the second largest partner in the Shah Deniz field after managing partner BP.

“Along with advantages like maintaining its supply security and diversity, as well as becoming a center of the West-East energy corridor, Turkey will receive important income thanks to the TANAP,” he added.

The prime minister also touched on plans to involve Turkmenistan gas in the TANAP, saying that the two deals included this process as well.

Turkmenistan has expressed its interest in exporting gas to Europe and it is believed that the TANAP would be a feasible route for this, Erdoğan added.