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    SD2 Sales to Turkey to Reach Contractual Level in July


Tanap has supplied 5bn m3 of SD2 gas to Turkey in the two years since its launch.

by: Dalga Khatinoglu

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SD2 Sales to Turkey to Reach Contractual Level in July

Gas deliveries from Azerbaijan's Shah Deniz 2 (SD2) project to Turkey are set to reach the contractual level of 6bn m3/yr in July, the CEO of the Trans-Anatolian Pipeline (Tanap) that handles the supplies, Saltuk Duzyol, said on June 11.

Tanap launched SD2 sales to Turkey on June 30 2018. It delivered 2bn m3 of gas in its first year and is expected to send 3bn m3 in its second ending June 30 2020, Duzyol told Turkish state media agency Anadolu.

The pipeline runs from eastern Turkey, where it connects with the South Caucasus Pipeline, to the Greek-Turkish border in the west, where it is due to feed gas into the Trans-Adriatic Pipeline (TAP) traversing Greece and Albania and ending in Italy. TAP will flow around 10bn m3/yr of gas to Europe at full capacity.

Investments in Tanap were halved from initial estimates to $6.5bn, Duzyol told NGW in October, noting that the pipeline's shareholders expected to earn $1.45bn/yr in transit revenues once Tanap and Tap are operating at full capacity. As such, the company expects to fully cover costs in six or seven years.

The CEO said current economic difficulties would not disruption Tanap's operations, as the pipeline has 15-year contracts on gas transit. The pipeline has already supplied 21.4mn 3 of gas for testing TAP, and supplies will be increased over the coming months.

"We aim to start delivering commercial gas to Europe as soon as possible after the completion of the tests and the commissioning of TAP," he said.