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Projected TAGP volume suggests a future TCGP

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Anatolian gas pipeline may expand fourfold
Robert M. Cutler; Asia Times Online; Apr. 18, 2012

MONTREAL – The president of the State Oil Company of Azerbaijan (SOCAR), Rovnag Abdullaev, has announced that the US$8 billion-plus Trans-Anatolian Gas Pipeline may be expanded four-fold from its initially planned volume of 8-16 billion cubic meters per year (bcm/y) to as much as 60 bcm/y.

SOCAR will build the pipeline (known by the acronym TAGP and also TANAP from its initials in Turkish) from the Georgian-Turkish border to the Turkish-Bulgarian border, with the participation of the Turkish firms BOTAS and TPAO. The initially estimated cost for its construction was $5 billion, but this has already risen informally to $6-8 billion, and the final cost will be known only after the conclusion of the actual construction contracts.

Abdullaev’s statement represents new formal support for the Trans-Caspian Gas Pipeline (TCGP) project to transport natural gas from Turkmenistan under the Caspian Sea to Azerbaijan and onwards to Europe. The European Union has been participating in talks towards this end jointly with Turkmenistan and Azerbaijan, and has stated its readiness to purchase 30 bcm/y from Turkmenistan.

That is the volume usually cited as necessary to make the TCGP commercially viable. For its part, Turkmenistan has stated its readiness to sell up to 40 bcm/y. According to Abdullaev, however, it is only “after the EU and Turkmenistan agree” that Azerbaijan can “think of which territory can be allocated for transit”.

Read more.

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Written by M. James

April 18, 2012 at 9:44 am

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