The part of the natural gas increases progressively in Turkish
energy market due to its advantages, such that it has been subject
to large projects. TANAP Project is one of the largest natural gas
projects in the world with an investment amount of USD 9,0, which
is regarded as one of the largest direct investment in natural gas
market in Turkey aiming to minimize external natural gas dependence
in Turkey. After the start of gas flow, it is expected that
Turkey's natural gas market will be influenced positively.
However, there are predictions concerning the natural gas sale and
import from Turkey with regard to the privatisation of
İGDAŞ which comes to the fore within the frame of the
Draft of New Regulation on Natural Gas Energy.
TANAP Project at a glance
TANAP Project has been signed through the Agreement by
Turkey's and Azerbaijan's governments in 2012 which has
been promulgated in Official Gazette on 19 March 2013. According to
this Agreement, this project is intended to transmit the natural
gas from Azerbaijan to Europe through Turkey and sell it to Europe.
This aims diversifying of natural gas resources and also the
incentive of natural gas transmission over Turkey. For conduction
of this project a consortium has been established. The project
partners are the Azerbaijan company SOCAR , BOTAŞ, BP and
STATOIL. The partnership interest of SOCAR is 51%, BOTAŞ and
TPAO have a share of % 20. The rest 29 % is held by BP, TOTAL and
STATOIL. Transfer of interest to these companies may attract
attention and provide support of Europe to this project. However,
Turkey does not intend to sell or decrease its shares on this
This project is regarded as the biggest contribution to the
natural gas supply of Turkey. The tender process of this project
has been set off recently, and according to SOCAR, start of
construction process is expected in 2014. If the project ends in
due time, gas flow is predicted to start in 2018. It is expected
that the gas amount will increase until 2026. Important is that the
revenue from the sale of gas will contribute to development of
Turkey's economy. This project will also provide the increase
of Turkey's geostrategical importance. According to the
agreement, 6,0 billion bcm of the natural gas which will be
transmitted to Europe will imported to Turkey and the rest of 16
billion bcm gas will be imported to Europe. Turkey is dependent on
external natural gas energy and its natural gas consumption has
been increasing year over year. Accordingly, this natural gas of 6
billion bcm will contribute to minimize its dependence on natural
gas export, and also contribute to meet of natural gas demand of
Providences regarding privatisation of İGDAŞ
As is known, the privatisation of İGDAŞ is topical and
the Draft of New Natural Gas Energy Regulation admits to this
privatisation with certain incentives, in which SOCAR is
interested. In the event that SOCAR takes İGDAŞ over, its
possibilities regarding competition in natural gas energy market,
especially positive and negative sides of centralizing of diverse
activities such as transmission, distribution and import of natural
gas in an institution may be discussed. According to the
experts' opinion, another possibility is that more natural gas
than intended may remain in Turkey. It is certain that TANAP will
meet a big part of natural gas demand of Turkey in all cases and it
may contribute to decrease of natural gas prices in Turkey.
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guide to the subject matter. Specialist advice should be sought
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