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Azerbaijan, WB Set to Sign Loan Deal on TANAP Today

Azerbaijan, WB Set to Sign Loan Deal on TANAP Today

Baku will today, Jan. 16, host a ceremony for signing of a loan agreement between Azerbaijan and the World Bank (WB) on the Trans Anatolian Natural Gas Pipeline (TANAP) project, the WB Baku office told Trend Jan. 16.

The WB allocated $400 million for Azerbaijan for the project’s implementation. The signing ceremony will be held as part of the Baku trip of the WB Regional Director for South Caucasus Mercy Tembon.

The WB Board of Directors approved the $400 million loan for Azerbaijan on Dec. 20, 2016. Meanwhile, another loan worth $400 million was allocated for Turkey. Both loans will be used in the construction of the TANAP, which is a part of the Southern Gas Corridor (SGC).

Beneficiaries of the loans are Azerbaijan’s Southern Gas Corridor JSC and Turkey’s BOTAS. The cost of the TANAP project is $8.5 billion.

TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey. The length of TANAP is 1,800 kilometers with the initial capacity of 16 billion cubic meters. Around six billion cubic meters of the gas will be delivered to Turkey and the remaining volume will be supplied to Europe.

The gas will be delivered to Turkey in 2018 and after completion of the Trans-Adriatic Pipeline’s construction the gas will be delivered to Europe in early 2020. TANAP shareholders are Azerbaijan’s state oil company SOCAR (58 percent), BOTAS (30 percent) and BP (12 percent).

Source: trend