Turkey's Prime Minister Recep Tayyip Erdogan and Azerbaijan's President Ilham Aliyev called the $7 billion (5.6 billion euros) inter-governmental agreement signed on June 27th "historic.", as reported SETimes.com .The 2,000km pipeline will have an initial annual capacity of 16 billion cubic metres, and could be expanded to transport other sources of gas.
TANAP is expected to be completed in 2018, around the same time the first gas exports from the Shah Deniz II gas drilling project in the Caspian Sea come online.
In a related development, the Shah Deniz gas producers' consortium on June 29th announced Nabucco-West -- a shortened version of the decade-old Nabucco pipeline project -- would be one of two final contenders to bring Azerbaijani gas to Europe from Turkey via Bulgaria, Romania and Hungary and Austria. The consortium is set to make a final decision next year between Nabucco West and the Trans-Adriatic Pipeline, which runs from Turkey to Italy via Greece and Albania.
In Ankara, officials anticipate Turkey's role as a major transit country will strengthen its bargaining power vis-a-vis the EU and Russia, while increasing its own energy security and relations with Azerbaijan.
Source of information SETimes.com