Monday, 16 November 2020 09:33

Commercial gas deliveries under 2013 contracts start

Commercial operation of the Trans-Adriatic gas pipeline has begun, the consortium's press service reports. TAP is the European section of the Southern Gas Corridor, which will annually carry out  new gas supplies from Azerbaijan to European markets in the volume of 10 billion cubic meters.

It is noteworthy that the commissioning of TAP means the final implementation of the Southern Gas Corridor.As is known, the Southern Gas Corridor starts from Shah Deniz field in Azerbaijan and ends in Italy. The corridor consists of three pipelines: the South Caucasus gas pipeline, TANAP and TAP.

A ceremony of linking TANAP to the Trans-Adriatic gas pipeline (TAP), which is a continuation of TANAP to Europe, was held in Ipsala district of Edirne province  on November 30, 2019. In total, it is planned to supply 16 billion cubic meters of gas via TANAP, of which 6 billion cubic meters will be delivered to Turkey, and 10 billion cubic meters to Europe. In the future, the carrying capacity of TANAP is planned to be increased up 31 billion cubic meters.

25-year gas sales contracts were signed with 9 companies in 2013: Gas Natural Fenosa, Depa, E.On, GDF-Suez (ныне Engie), Hera Trading, Axpo, Enel, Shell and Bulgargaz.The volume of gas distributed between these 9 companies under the signed agreements is not disclosed, as it is a commercial secret.

Shell has inked contracts for the most significant volume of 10 billion m3/year of gas meant for the European market.

Italy will receive 8 billion m3 / year of gas, while Greece and Bulgaria will receive 1 billion m3/year of gas each.

Thus, the SGC is an integrated gas pipeline system that includes TANAP, South Caucasus (SCT), and TAP cross-country gas pipelines.

The cost of the SGC is about $40 billion, its length is 3.5 thousand km, it will run from Baku to the south of Italy through the territory of Georgia, Turkey, Greece and Albania.

The length of the TAP in Greece  is 550 km, Albania 215 km, along the bottom of the Adriatic sea 105 km and landfall in Italy 8 km.

Laying about 55,000 pieces of pipes with a total weight of 520,000 tons; from a height of 2,100 m in the mountains of Albania to a depth of 810 m in the Adriatic sea.

The cost of the project amounted to 3.9 billion euros.

TAP's shareholders are bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

TAP shareholders decided to develop and build the facility at the end of 2013.The shareholders of the TANAP project are Southern Gas Corridor CJSC (51%), SOCAR Turkey Enerji (7%), Turkish Botas (30%), BP (12%). When fully loaded, TANAP will bring revenues worth $1.45 billion annually. In other words, Azerbaijan will account for about 58% of the revenue. The Turkish government also receives revenue from pumping — the TANAP consortium's deductions from the pipeline's operation are made at the rate of $5.95 dollars per 1 thousand cubic meters. Azerbaijan became the largest gas supplier to Turkey in the first half of 2020.The volume of gas purchases from this country increased by 23.4% compared to the same period of last year — to 5.44 billion cubic meters.This is due to an increase in supplies via the Trans-Anatolian gas pipeline (TANAP).

In the first half of the year, 4.68 billion cubic meters of gas were imported from Russia against 7.99 billion cubic meters for the same period in 2019 (a decrease of 41.5%).

Gas imports from Iran decreased by 46%  - to 2.03 billion cubic meters. At the same time, no natural gas supplies were made from Iran to Turkey in April, May and June.

During January–June, Algeria became the largest supplier of LNG to Turkey with 2.99 billion cubic meters. Qatar imported 2.85 billion cubic meters of LNG, which is 124% more than in the same period of last year.

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