The board of the Multilateral Investment Guarantee Agency (MIGA) has approved a guarantee for up to $1.2 billion for the Trans-Anatolian Natural Gas Pipeline (TANAP) project, a source in MIGA told Trend Dec.30.
“The guarantee is expected to help draw in commercial banks that will contribute to long-term financing needs of the project,” said the source. “Reinsurance capacity is also expected to be mobilized.”
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 this 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).