TANAP Awards Construction Contracts
The consortium for the Trans-Anatolian gas pipeline (TANAP) for delivery natural gas from Shah Deniz-2 development in Azerbaijan to Turkey and Europe has picked three contractors for the approximately 1800 km pipeline ‘s construction.
According to the consortium, Fernas Insaat, Sicim-Yuksel-Akkord and Tekfen Holding will build the 56- inch line that will start from Georgia-Turkey border and run westward to the Turkish Eskishehir town.
Named companies have won a tender for three lots for 1337 km of the pipeline route. The construction contracts were signed 23, December in Ankara, Azerbaijan's state oil company SOCAR said.
Fernas Insaat has secured Lot-1 proposing a construction of 375 km part of the TANAP line from Ardahan-Posof-Türkgözü to Erzurum/Aşkale.
Sicim, Yuksel and Akkord consortium will be responsible for the Lot-2 with total lengths of 450 km.
According to Tekfen Holding its construction unit Tekfen Insaat secured a $565 million deal as part of TANAP project that involve building a 509 km part of the pipeline and will be completed in three years.
The contacts for the rest of the onshore section of TANAP from Eskishehir to Turkey-Greece border has to be awarded yet.
The tender for the 18-km offshore section of TANAP will be announced in the first quarter of next year with planning contract award in third quarter of 2015.
Two parallel 36” offshore pipelines plans to start construction in 2017 with completion by early 2018. TANAP issued pre-qualification for offshore section in November.
Earlier in October a total of seven companies have been awarded a pipe supply contacts for future pipeline.
Turkish companies will provide 80 % of the steel pipe demand of the 1,800 km-long TANAP .
Under the agreements, some 30 % of the steel pipes will be supplied by the consortiums comprising of Borusan Mannesman, Noksel and Erciyas, 25 % by Ümran and Emek, and 25 % by Tosçelik Profil.
The remaining 20% will be provided by Chinese Baosteel Europe, based in Germany.
Azerbaijan state-owned company SOCAR led the TANAP consortium as a major stakeholder. The other partners are Turkey’s Botas and UK’s supermajor BP.
After completion all legal transactions SOCAR will have 58% interest in the project with Botas and BP holding 30 % and 12 % subsequently.
According to SOCAR’s president Rovnag Abdullayev, TANAP ground breaking ceremony is planning for next spring which will give an official start of the contraction of the line with the initial capacity of 16 billion cubic meters of gas a year.
About 6 bcm of this gas will be delivered to Turkey and the rest 10 bcm to Europe.
The $10-11 billion TANAP will link up with Trans-Adriatic pipeline (TAP) on the Turkish-Greek border.
Gas from Shah Deniz-2 will reach Turkey in late 2018, and move to Europe via TAP in early 2020.