The TANAP project is a very important and strategic project for Turkey, as it will help to resolve the issue of gas shortage in the country, the minister said.
On December 17, 2013, a final investment decision was made on the Stage Two of the Shah Deniz offshore gas and condensate field’s development. The gas produced at this field will first go to the European market (10 billion cubic meters).
The gas to be produced as part of the Stage Two of the field’s development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
Azerbaijan with total gas reserves in the volume of about three trillion cubic meters will be able to begin supplying fuel to Europe via the planned Trans-Adriatic Pipeline. TAP’s initial capacity will be 10 billion cubic meters of gas per year with possible expansion up to 20 billion.
Azerbaijani gas will be delivered throughout Turkey via the Trans-Anatolian gas pipeline up to TAP, which would start on the Turkish-Greek border. Prior to TANAP, the gas will be delivered via the current 700-kilometer South Caucasus gas pipeline. Its capacity will be expanded.
Turkey has contracts with Iran to supply 10 billion cubic meters of gas per year, with Russia it is 20 billion cubic meters of gas and with Azerbaijan – 6.6 billion cubic meters of gas.
Turkey also has an agreement with Algeria and Nigeria for the supply of 4.4 billion and 1.2 billion cubic meters of liquefied natural gas respectively per year.
Gas prices are not officially disclosed, but Turkey buys Iranian gas at $490 per 1,000 cubic meters, according to Turkish media. Turkey pays $335 for 1,000 cubic meters of Azerbaijani gas which is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline). The country pays $425 for 1,000 cubic meters of Russian gas.
Turkey imported 45.2 billion cubic meters of gas in 2013, the Turkish news agency Anadolu reported.
Around 20.7 percent of the total volume of gas imported by Turkey accounted for consumers among the population, 45.85 percent – electricity generation. Around 25.11 percent of the imported gas was used in the industrial sector of the country.
Around 58 percent of gas imported by Turkey accounted for Russia, 19 percent – Iran, 9 percent – Azerbaijan in 2013. The remaining 14 percent of the imported gas accounted for Algeria and Nigeria.