BP acquires 12 percent stake in TANAP pipeline project

Energy giant BP signed an agreement on March 13 to acquire a 12 percent stake in the Trans-Anatolian Natural Gas Pipeline Project (TANAP).

The agreement was inked in the Turkish capital Ankara by Turkish Energy Minister Taner Y?ld?z, State Oil Company of Azerbaijan (SOCAR) President Rovnag Abdullayev, Turkey's Petroleum Pipeline Corporation (BOTA?) Deputy General Manager Mehmet Konuk, TANAP General Manager Saltuk Düzyol, and BP Azerbaijan President Gordon Birrell.   

TANAP is part of the Southern Gas Corridor, which plans to carry natural gas sourced in Azerbaijan near the Caspian Sea to Europe through Turkey.

"TANAP has faced many political and economic obstacles throughout its development, however Turkey will always fully support the project," Y?ld?z said, in his speech after the signing ceremony.

The decrease in oil prices will not affect the completion of the project, he added, stressing that Ankara has full confidence in the project's partners, BP and SOCAR.

With the agreement, SOCAR will hold a 58 percent stake in TANAP, BOTA? will have a 30 percent stake and BP will have a 12 percent stake.

Y?ld?z also emphasized that TANAP will not be a rival to the planned gas pipeline between Russia and Turkey announced earlier this year, unofficially called "Turkish Stream."

The initial capacity of TANAP is expected to be 16 billion cubic meters (bcm) of gas per year, gradually increasing to 31 bcm. Around 6 bcm of gas will be delivered to Turkey, and the remaining volume will be supplied to Europe. The gas will arrive in Turkey by 2018, and after the construction of the Trans Adriatic Pipeline (TAP) it will reach Europe by early 2020.

BOTA? Deputy General Manager Konuk said TANAP will meet a...