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TANAP Project Cost to Increase up to $10 billion

Due to changes in the final route of the Trans-Anatolian Gas Pipeline Project (TANAP), the project's cost will increase anywhere between $3-10 billion, explained Kenan Yavuz, head of SOCAR Turkey Energy, this Friday.

Yavuz emphasized that despite the cost increases, the project's implementation is crucial for Turkey and will lead to more affordable gas prices.

In addition, Azerbaijan's investments in Turkey from 2008 to 2018 will increase from an expected $17 billion to between $19-20 billion.

SOCAR partners on the Shah Deniz project previously expressed interest in participating in the TANAP project.

According to preliminary data, the partners intend to distribute 12 percent shares to Statoil and BP, while Total receives a 5 percent share.

Presently, a 20 percent share in TANAP belongs to Turkey's BOTAS and TPAO, while 80 percent is owned by the State Oil Company of Azerbaijan (SOCAR).

SOCAR intends to retain 51 percent of equity in the project. Turkey will retain a 20 percent share.

The TANAP project entails the construction of a pipeline from Turkey's eastern border to its western border to supply gas from Azerbaijan's Shah Deniz gas field onward to Europe.

The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About six billion cubic meters will be delivered to Turkey, and the rest to Europe.

Source: Trend

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