TANAP headquarters to be based in Netherlands

Trans-Anatolian gas pipeline (TANAP) will strengthen Turkey's position for joining the European Union, Hurriyet newspaper cited the report of Gyulmira Rzayeva, employee of the Department of Economic Analysis and Globalization of the Centre for Strategic Studies under the presidential administration, 

Rzayeva's report "All Actors To Follow Rules of Azerbaijan and Turkey" reads that Turkey will get political benefits from the project implementation, which it will be able to use at the talks with EU.

"After TANAP implementation Turkey's position in the region will be absolutely different," reads Rzayeva's report. She believes that TANAP project shows that Azerbaijan and Turkey do not want to be dependent only on one European pipeline Nabucco. TANAP could connect to any route to export gas to Europe.

Rzayeva believes that role of State Oil Company of Azerbaijan (SOCAR) as the project operator is very important. She said that gas export via TANAP could be increased at the expense of new fields.

"By 2025 Azerbaijan will increase natural gas production up to 50-55 billion cub.m. 20-25 billion cub.m. of this volume is planned to be exported," Rzayeva believes.

She added that Russia and Iran are not interested in the project implementation. "Turkey pays $400 per 1000 cub.m. of Russian gas and after signing of the TANAP agreement Iran has increased gas price from $505 to $585, which will cost Ankara additional $800 million," the report reads.

Rzayeva said that the headquarters of TANAP consortium will be based in Netherlands, which is a neutral country.

She added that talks on partnership of BP and Norwegian Statoil company in TANAP project continue. Rzayeva also said that TPAO will have 15% in the project and BOTAS - 5%. Botas will be in charge of transportation of 6 billion cub.m. of gas a year via the pipeline for Turkey's domestic needs.-0-