Natural Gas   Intergovernmental

1/16/2017

Trans Anatolian Natural Gas Pipeline (TANAP) Project

The World Bank and Azerbaijan signed a USD 400 million loan agreement on Trans-Anatolian Natural Gas Pipeline project (TANAP) on January 16...

Loan agreements are signed one by one for the 1,800 km long Trans Anatolian Pipeline (TANAP) which will transport natural gas from the Shah Deniz gas field in Azerbaijan to and across Turkey, and further to Europe and whose shareholders are SOCAR, BOTAŞ and BP. 

The World Bank and Azerbaijan signed a loan agreement on Trans-Anatolian Natural Gas Pipeline project (TANAP) on January 16. The agreement was undersigned by WB Regional Director for the South Caucasus Mercy Tembon and head of Southern Gas Corridor Company Afghan Isayev, while guarantee agreement was undersigned by Finance Minister Samir Sharifov.   

As known, The Bank earlier approved a $400 million loan for Turkey and a $400 million loan for Azerbaijan for the implementation of the TANAP project TEBA:1795/ December 21, 2016. The recipients of funding are the Southern Gas Corridor (SGC) Closed Joint Stock Company with the guarantee of Azerbaijan and the Boru Hatları İle Petrol Taşıma Anonim Şirketi (BOTAŞ) with the guarantee of Turkey. BOTAŞ is expected to sign the loan agreement soon. SOCAR has 58 percent share and BOTAŞ has 30 percent share in the Project. 

Total cost of the TANAP project is estimated at $8.5 billion. The Asian Infrastructure Investment Bank has recently approved another 600 million Dollar loan to be used by SGC TEBA:1795/ December 22, 2016. On the other hand, European Investment Bank is expected to provide financing support for the Project as well. The length of TANAP is 1,800 kilometers with the initial capacity standing at 16 billion cubic meters. The construction work within the project is currently on track. So far, some 55 percent of operations have already been completed.