TANAP Director General: 'Turkish budget will be paid 5,95 USD tax per 1000 cubic meters gas'

Baku. 4 July. REPORT.AZ/ Trans-Anatolian Pipeline (TANAP), which will transport Azerbaijani gas to Turkey and from there to Europe, will be ready to distribute first gas in Turkey from Eskişehir in June, 2018 and initially, 2 billion cubic meters.

Report informs citing Turkish Hürriyet newspaper, TANAP Director General Saltuk Düzyol said.

According to him, this volume will reach 6 billion cubic meters over 3 years: 'TANAP's initial capacity is estimated annual 16 billion cubic meters. Capacity will be increased to 31 billion cubic meters'.

He noted that works of 4,5 billion USD are being carried out at TANAP construction phase. 80%, namely 3,6 billion USD of these works are implemented by Turkish companies.

Director General said that 6 thousand people work at TANAP construction area, this figure makes 15 thousand together with the companies, which render services.

S.Düzyol reminded that initial investment cost of the project estimated 11,2 billion USD: 'Decline in oil and steel prices as well as relevant decline in many material prices, reduced the investment in the project in the amount of 2,5 billion USD'.

The project's Director General said that cost for transportation of 1 000 cubic meters of gas via TANAP makes 70 USD: '30% of this figure will fall to share of BOTAŞ, one of shareholders of the project. Turkish budget will be paid 5,95 USD tax per 1000 cubic meters gas'.

TANAP is a pipeline, which will transport the gas, produced within development of second phase of Azerbaijan's 'Shah Ddeniz' field in the Caspian Sea, to Turkey and then to Europe. TANAP, which is a branch of the Southern Gas Corridor project is being constructed in the territory of Turkey. The pipeline will connect with Trans-Adriatic Pipeline (TAP), designed to transport Azerbaijani gas to Europe through Turkey-Greece border.

On March 17, 2015, groundbreaking ceremony of the TANAP has been held in Kars, Turkey with participation of Azerbaijani, Georgian and Turkish presidents. Initial capacity of the pipeline, which is planned to be put into operation in 2018, will be 16 billion cubic meters per year. About 6 billion cubic meters of this gas will be transported to Turkey, the remaining to Europe. The TANAP pipeline will have two starting point in Eskisehir, Turkey and in Thrace. The sale of gas in Turkey will be carried out by BOTAS company. The total length of the pipeline is 1 850 km. 19 km section of the pipeline will pass through the Sea of Marmara.

Notably, SOCAR owns 58%, BOTAS 30% BP 12% share in the TANAP project.