EBRD approves loan for TANAP

The Southern Gas Corridor (SGC) and European Bank for Reconstruction and Development (EBRD) have today signed an agreement to earmark loan for TANAP.

According to Ministry of Finance, the $500 million loan agreement was signed by the Afghan Isayev, Director-General of the Southern Gas Corridor Closed Joint Stock Company (CJSC) and Aida Sitdikova, EBRD Director for Energy and Natural Resources, Russia, Caucasus and Central Asia. The guarantee agreement was signed by Finance Minister Samir Sharifov and Aida Sitdikova.

On October 18, 2017 the EBRD Board of Directors made a decision on allocation of $500 million in loan to the SGC for the period of 18 year to finance the TANAP.

Afghan Isayev said that the SGC will contribute to the country’s economy by providing access of Azerbaijani gas to global energy markets and informed about the works done: “The total amount of investments required for SGC makes up $11.8 billion by 2020. The SGC has so far fulfilled 66% ($7.8 billion) of total amount. Of this, $1.9 billion has been invested since early 2017. Within the project, 96% of works on Shahdeniz II, 98% on South Caucasus Pipeline Expansion Project (SCPX), 82% on TANAP and 53% on TAP have been completed”.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey. The gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.

First gas transportation to neighbour country within TANAP will start in 2018. The planned capacity of the pipeline would be 16 billion cubic metres of natural gas per year at initial stage and would be increased later up to 23 billion cubic metres by 2023, 31 billion cubic metres by 2026.

1,802 km-TANAP will be linked to TAP from 2020 and deliver natural gas that will receive via South Caucasus Pipeline to Europe through Greece, Albania and Italy.

The pipeline is expected to cost US$9.2 billion. Azerbaijan will spend $6.1 billion.

TANAP shareholders: SOCAR - 58%, Botas – 30% and BP – 12%.

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 878 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s shareholding is comprised of BP (20%), Southern Gas Corridor (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

The Leviathan gas field is a large natural gas field located in the Mediterranean Sea off the coast of Israel. The gas field, located roughly 130 kilometres west of Haifa in waters, was discovered in 2010. The potential reserve size is being estimated at 500-600 bcm. APA