World Bank, European Investment Bank set to invest in TANAP: Sources

World Bank, European Investment Bank set to invest in TANAP: Sources

Merve Erdil - ISTANBUL
World Bank, European Investment Bank set to invest in TANAP: Sources The World Bank and the European Investment Bank are set to invest $1 billion and 1 billion euros, respectively, in the Trans-Anatolian Natural Gas Pipeline Project (TANAP) project, according to sources close to the matter. 

The TANAP project envisages gas transportation from Azerbaijan’s Shah Deniz II field through Turkey and up to the country’s border with Europe.

Azerbaijan’s Socar has a 58 percent of stake in the TANAP project, Turkey’s gas grid Botaş has a 30 percent stake and BP has a 12 percent stake. 

While the initial costs were set at $11.7 billion in the project, this figure has gradually decreased to $9.2 billion after some costs were cut, sources said. 

The World Bank plans to invest around $1 billion in the project, while the EIB plans to provide around $1 billion euros for the project, they added. 

EIB Vice President Pim van Ballekom had earlier said the bank planned to allocate 1 billion euros for the project. The amount will be used by Botaş to meet some of its financing promises for the project, which is around $3 billion, according to sources. 

The initial capacity of TANAP is expected to be 16 billion cubic meters (bcm) of gas per year, gradually increasing to 31 bcm. 

Around 6 bcm of gas will be delivered to Turkey, while the remaining volume will be supplied to Europe. The gas will arrive in Turkey by 2018, and after the construction of the Trans Adriatic Pipeline (TAP), it will reach Europe by early 2020.

TANAP General Manager Saltuk Düzyol said in a meeting on April 20 that the welding work on a 440-kilometer section of the planned 1,850-kilometer-long pipeline had been completed. 

“The TANAP project consortium has already outlined a joint venture to build a 459-kilometer section of the pipeline from Turkey’s Eskişehir province to the border with Greece. Apart from the lines crossing the sea, all contracts have been signed. Our aim is to complete the project by June 2018, although we will work hard to make it at an earlier date,” he said.