More Caspian gas on the horizon for TANAP

/By AzerNews/

By Gulgiz Dadashova

Just a few days ago, Iran’s nuclear negotiations with world powers gave the international community renewed hope peace and diplomacy would prevail, amid much chaos and tensions.

A few days into the announcement of a deal and it looks as if Iran is ready to return the international arena and join one of the most important energy projects of the region, TANAP.

The Trans Anatolian Pipeline, a strategically important project to ensure energy supply security for mainland Europe, will pipe natural gas from Azerbaijan’s Shah Deniz field in the Caspian basin to Europe via joining the Trans Adriatic Pipeline.

Iran, holding 33.6 trillion cubic meters of proven gas reserves, sharing 18 percent of total global gas reserves, has lauded its intention to buy stakes in the project that will eventually allow the country to transport its blue energy to Europe through the Southern Gas Corridor, which will connect TANAP and TAP.

President of Azerbaijan’s energy giant SOCAR, Rovnag Abdullayev said on 4 April that Iran is interested in purchasing a stake in the TANAP, adding that the company is ready to consider offers for the sale of a part of its share in TANAP.

“After the decision to lift sanctions imposed against Iran, TANAP’s relevance has grown even more. Iran will increase gas production, and, except for TANAP, there is no other alternative for bringing Iran’s gas to world markets,” he said.

The European Union banned the purchase of Iranian oil and gas in 2012, but a comprehensive deal on Tehran's nuclear program targeted for 30 June would see suspension of sanctions.

The TANAP project, which is expected to cost $10 billion, is set to commence shipments of natural gas from June 2018. Turkey will buy 6 billion cubic meters gas from the pipeline. The later part of 10 billion cubic meters will ship to TAP for the European customers from 2020.

The focus in the EU is shifting to the Southern Gas Corridor, a series of pipelines that would carry Azerbaijani gas to Europe. The project is designed to create an infrastructure that will bring gas from the Caspian and Middle Eastern regions to Europe. Countries including Azerbaijan, Turkey, Georgia, Turkmenistan, Kazakhstan, Iraq and Egypt have been identified as potential key suppliers.

Iran may buy a stake in the Trans-Anatolian Natural Gas Project if “certain commercial conditions” are fulfilled, Energy Minister Taner Y?ld?z said April 9, confirming the possible expansion of the project shareholders’ number.

“It will be possible for Iran to take a stake in the TANAP project as long as certain commercial conditions are fulfilled,” Y?ld?z said, adding that there were other countries which also want a stake in the project.

Turkmenistan, producing about 70-80 billion cubic meters of gas each year, has already voiced its intention to join the TANAP to get an access to European markets and in this view it struck a so-called framework agreement with Turkey in November 2014.

In order to supply gas to Europe via the Southern Gas Corridor, Turkmenistan would have to integrate with the TANAP. To join the pipeline Turkmenistan, holding the world's fourth-largest reserves of natural gas, will have to lay another pipeline across the Caspian Sea.

Europe has facilitated diplomatic efforts in between Azerbaijan and Turkmenistan on the Trans Caspian Pipeline, pipeline through the Caspian Sea to Azerbaijan since September 2011.

Turkmenistan’s President Gurbanguly Berdymukhammedov recently said the construction of the Trans-Caspian gas link remains on the agenda.

“We’re in trilateral talks with Azerbaijan and Turkey. I hope we’ll reach an agreement,” Berdymukhammedov said on April 7 in Turkmen capital, RIA Novosti reported.

Kazakhstan is one of the countries that potentially can obtain a share in the TANAP, Vladimir Yevseyev, director of Russian Center for Public Policy Research said.

“Very close relations between Astana and Baku as well as Kazakhstan’s significant investments suggest that the country could purchase a share in this project,” the expert told Trend.

Yevseyev added that this can happen should Kazakhstan make funds available “under such uneasy conditions”.

TANAP’s shareholders at present are: Azerbaijan’s SOCAR – 58%, Britain’s BP – 12% and Turkey’s BOTAS – 30%. France’s Total and Norway’s Statoil withdrew from this project last year.