TODAY.AZ / Business

Turkey seeks more TANAP share, says SOVAR

14 April 2014 [18:00] - TODAY.AZ
By AzerNews

Turkey is planning to gain an additional 10 percent share in the Trans-Anatolian pipeline (TANAP) project, Head of Azerbaijan's State Energy Company SOCAR Rovnag Abdullayev told journalists on April 12.

"This issue will be discussed next week at a meeting with the Turkish side. The preparation for making a final decision will be completed as part of this large-scale project in late April," he noted.

"Works are being carried out in accordance with the prescribed schedule. If we manage to conduct the operations on time, the construction work will be launched by late 2014. It will enter into an active phase in 2015," Abdullayev said.

TANAP, developed by SOCAR in collaboration with Turkish Botas and the energy company TPAO, will deliver Shah Deniz gas to the Turkish-Greek border from eastern Turkey.

The initial capacity of the pipeline will be 16 billion cubic meters of gas a year. TANAP will link up with Trans-Adriatic (TAP) pipeline on the Turkish-Greek border.

TANAP shareholders plan to lay the pipeline's foundation in the second quarter of 2014, and commission it in 2018. The costs of the TANAP project are estimated at $10 billion to $11 billion.

SOCAR head went on to note that his company has held talks with banks regarding the participation in financing the project for construction of Star refinery in Turkey.

"Some talks are planned in Turkey in late April to discuss solution to investment issues related to this project," Abdullayev said.

"The works for construction of a refinery are underway, all earthworks have already been completed," Abdullayev said.

The refinery is under construction in Turkey's Izmir city.

The new Star oil refinery will be operational in 2017. With an annual capacity of 10 million tons, it will be capable of refining oil grades such as Azeri Light, Kirkuk, and Urals.

Some 16 billion cubic meters of gas will be produced in the Shah Deniz Stage 2 development and exported to energy markets. This figure will be increased by one billion cubic meters per year.

Estimated at $5.5 billion, the refinery is mostly intended for creating a resource base for the chemical company Petkim Holding. It will contribute significantly to the region and country's economy by creating job opportunities and increasing competitiveness.
URL: http://www.today.az/news/business/132656.html

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