Transit Pipelines

In order to meet the rising natural gas demand of Turkey, negotiations were conducted with the Azerbaijan Government and Shah Deniz Consortium that has been developing Shah Deniz field of Azerbaijan. An agreement concerning supply of 6 billion m3 Azeri gas annually to Turkey starting from 2018 was signed on October 25, 2011. In addition, for transit of 10 billion m3 Azerbaijani gas to Europe through Turkey via a newly constructed pipeline, Intergovernmental Agreement concerning Trans Anatolian Natural Gas Pipeline (TANAP) System between Turkey and Azerbaijan and a Host Governmental Agreement, which is annex to the Intergovernmental Agreement, between Turkey and the Project Company were signed on 26 June 2012. With these agreements, legal framework has been established to ensure the realization of TANAP Project.

In order to bring the gas to be produced in Azerbaijan to Turkey and through Turkey to Europe, final investment decision of the Shah Deniz Phase II development, the Southern Caucasus Pipeline Expansion (SCPX) Project, TANAP and the Trans Adriatic Pipeline with an overall investment cost of 45 billion Dollars were taken at the ceremony held in Baku in December 2013. Turkey has a share of 19% in Shah Deniz Phase II and South Caucasus Pipeline Expansion Project through TPAO and 30% in TANAP Project through BOTAŞ. Thus, Turkey plays an active role in the gas supply chain from the wellhead to the end user.

With TANAP Project, a 1,850 km long pipeline with athe initial capacity of 16 billion m3 and the maximum capacity of 32 billion m3 per year is planned to reach the Greece border from Georgia. The activities related to the project are carried out by TANAP Doğalgaz İletim A.Ş. in which BOTAS has 30% share, SOCAR 58% and BP 12%.

The groundbreaking ceremony of the project was held in Kars on 17 March 2015 and hosted by the President of the Republic of Turkey with the participation of many countries, especially United States of America and European Union, at prime ministerial and ministerial level. On June 12, 2018, the inauguration ceremony of the project was held in Eskişehir/Seyitgazi and again hosted by the President of the Republic of Turkey with the participation of heads of states, prime ministers and ministers of energy of several countries, executives of energy companies and senior bureaucrats, the first gas flow to Turkey was started at the end of June, 2018. It is projected that gas supply to Europe will start in 2020.