TANAP CEO: It may take 4-5 years to double TANAP capacity

14:57 - 23.02.2022

February 23, Fineko/abc.az. Almost 2-fold increase of capacity of the Trans-Anatolian Gas Pipeline (TANAP) up to 31 bn cu m will take up to 5 years.

TANAP consortium’s CEO Saltuk Duzyol informs that the TANAP gas pipeline is currently being operated as part of the first phase, which provides for the annual export of about 16 bn cu m of gas from Azerbaijan to Turkey and Europe.

"The increase in the pipeline's capacity by almost half, up to 31 bn cu m a year on terms of performance may take 4-5 years, given the fact that after the final investment decision is made, it will take time to conduct tender procedures and construction work," Duzyol said.

He said that TANAP capacity increase is planned in 2 stages, the first of which provides for bringing the pipeline capacity to 24 bn cu m a year and the second - to 31 bn cu m a year.

"The work on expanding TANAP's capacity may take less time and require less investment, it all depends on the volumes that the decision to increase the capacity of this pipeline will be focused on," Duzyol said.

He noted that he expects an increase in global gas demand, which may push interested parties to make a decision to increase export capacity.

"For this, as Turkish Minister of Energy & Natural Resources Fatih Denmez has previously stated, gas producers will need to increase investments in production. In addition, it will be necessary to conclude contracts for gas supplies. In general, the decision to increase the capacity of the gas pipeline can be made if there is a corresponding interest among consumers, and agreements with the owners of the pipeline and gas producers," Duzyol said.

He also noted that if the decision to expand is made now, it will have to take into account that against the background of the continuing rise in oil prices and the processes taking place in the global economy, all services and equipment are becoming more expensive, which increases the cost of the project.

Duzyol said that in addition to Turkey, at the expense of Southern Gas Corridor activities, 10 large European companies are buyers of Azerbaijani gas.