TANAP founded in Kars

The ceremony of founding the Trans-Anatolia Pipeline (TANAP) has been held in the Turkish city of Kars. It is the key element of the Southern Gas Corridor to supply Europe with Caspian gas. Presidents Ilham Aliyev (Azerbaijan), Giorgi Margvelashvili (Georgia) and Recep Tayyip Erdogan (Turkey) attended the ceremony. Aliyev emphasized the close ties between Turkey and Azerbaijan and the role of energy and transportation projects (for example, the Baku-Tbilisi-Kars railway founded in Kars) in strengthening their relations, APA reports.

Margvelashvili noted that founding the TANAP was essential for Georgia. It took the three leaders years to start the project. He called Georgia a gateway between Europe and Asia. In his words, Turkey and Azerbaijan are vital for Georgia’s success. Margvelashvili added that the project will boost tourism and trade, freighting from China and Asia was growing.

Erdogan said that his country was planning to become a center for diversification of energy resources. He stated that the TANAP project had no analogues. It will form a maritime connection between Europe and the Caspian Sea.

Sberbank CIB analyst Valery Nesterov called TANAP a competitor of Russian gas projects in the region. It will be the first pipeline to deliver the gas of a post-Soviet state other than Russia to the EU. The system in Baku may be expanded to a capacity of 60 billion cubic meters a year, changing the situation on the gas markets of Turkey, Southern and Southeastern Europe, which will be more interested in gas than Northern an Northwestern Europe in the next 5-10 years.

Nesterov noted that the Shah Deniz Field was very costly, especially taking into account the TANP project’s expenditures of $10 billion, and its extension to Italy, the Trans-Adriatic Pipeline. Overall, the initial gas system will have a capacity of up to 16 billion cubic meters a year, more than the Yamal LNG project. Gas, in the expert’s words, will cost $340-350 per thousand cubic meters without taking falling oil prices into account. The current average gas price is $300 per thousand cubic meters.

Ilkham Shaban, the head of the Center for Oil Studies, said that TANAP will have a significant impact on Azerbaijan, Georgia, Turkey and the Caspian states. The Southern Gas Pipeline will have created about 30,000 jobs by 2016, the expert believes. Azerbaijan will gain advanced infrastructure.

Shaban predicts that the capacity will have reached $31 billion cubic meters by 2026. The access of Europe to Caspian gas is one of the most notable properties of TANAP, according to the expert.

Togrul Ismail, a docent of the Faculty of International Relations of the TOBB University of Economics and Technology, reminded that Azerbaijan had built the Baku-Tbilisi-Ceyhan oil pipeline to enforce its energy security, the Baku-Tbilisi-Kars railway construction was coming to an end. Azerbaijan, Georgia and Turkey sell electricity to Europe. TANAP, in Ismail’s opinion, is an internal project, the Trans-Adriatic Pipeline will be used for exports. TANAP will keep at least Italy, Greece and Bulgaria supplied with gas, Ismail concludes.

Kars has held the ceremony of founding the Trans-Anatolia Pipeline (TANAP). It is the key element of the Southern Gas Corridor to supply Europe with Caspian gas. Presidents Ilham Aliyev (Azerbaijan), Giorgi Margvelashvili (Georgia) and Recep Tayyip Erdogan (Turkey) attended the ceremony. Aliyev emphasized the close ties of Turkey and Azerbaijan and the role of energy and transportation projects (for example, the Baku-Tbilisi-Kars railway founded in Kars) in strengthening their relations, APA reports.Margvelashvili noted that founding the TANAP was essential for Georgia. It took the three leaders years to start the project. He called Georgia a gate between Europe and Asia. In his words, Turkey and Azerbaijan are vital for Georgia’s success. Margvelashvili added that the project will boost tourism and trade, freighting from China and Asia was growing.Erdogan said that his country was planning to become a center for diversification of energy resources. He stated that the TANAP project had no alternatives. It will form a maritime connection between Europe and the Caspian Sea.Sberbank CIB analyst Valery Nesterov called TANAP a competitor of Russian gas projects in the region. It will be the first pipeline to deliver gas of a post-Soviet state other than Russia to the EU. The system in Baku may be expanded to a capacity of 60 billion cubic meters a year, changing the situation on the gas market of Turkey, Southern and Southeastern Europe, which will be more interested in gas than Northern an Northwestern Europe in the next 5-10 years.Nesterov noted that the Shah Deniz Field was very costly, especially with account of the TANP project’s expenditures of $10 billion, its extension to Italy, the Trans-Adriatic Pipeline. Overall, the initial gas system will have a capacity of up to 16 billion cubic meters a year, more than the Yamal LNG project. Gas, in the expert’s words, will cost $340-350 per thousand cubic meters without account of the falling oil prices. The current average gas price is $300 per thousand cubic meters.Ilkham Shaban, the head of the Center for Oil Studies, said that the TANAP will have significant impact on Azerbaijan, Georgia, Turkey and Caspian states. The Southern Gas Pipeline will have created about 30,000 workplaces by 2016, believes the expert. Azerbaijan will gain advanced infrastructure.Shaban predicts that the capacity will have reached $31 billion cubic meters by 2026. The access of Europe to Caspian gas is one of the most notable properties of the TANAP, according to the expert.Togrul Ismail, a docent of the Faculty of International Relations of the TOBB University of Economics and Technology, reminded that Azerbaijan had built the Baku-Tbilisi-Ceyhan oil pipeline to enforce its energy security, the Baku-Tbilisi-Kars railway construction was coming to an end. Azerbaijan, Georgia and Turkey sell electricity to Europe. TANAP, in Ismail’s opinion, is an internal project, the Trans-Adriatic Pipeline will be used for the exports. The TANAP will keep at least Italy, Greece and Bulgaria supplied with gas, concludes Ism