Turkish Firm Wins $457mn Tanap Contract
Turkish Tekfen Holding won a supply and construction contract worth $457mn from the Trans-Anatolian Natural Gas Pipeline Project (Tanap) project. Tekfen has already won a tender to participate in piping 1337 km of the line.
The consortium awarded Tekfen, Fernas Insaat, Sicim-Yuksel-Akkord rights to build the 56-in line that will start from the Georgia-Turkey border and run westward to the Turkish town of Eskishehir on December 2014.
Now, Turkish Hurriyet daily quoted Tekfen as saying it would carry out all the engineering, procurement and construction work of two compressor and four metering stations over the 1,850-km-long pipeline within the borders of Turkey. The company will complete the project in 39 months, the statement said.
The remaining 459-km section of Tanap from Eskishehir to the Greek border would be built by a joint venture composed of India’s Punj Lloyd and Turkey’s Limak Holding.
Tanap, the South Caucasus Pipeline and the Trans-Adriatic Pipeline, form the elements of the Southern Gas Corridor (SGC), aimed to transport Azerbaijan's gas to Turkey (6bn m³/y) and Europe (10bn m³/y) where it will compete for market share with Russian pipeline gas and LNG.
By the time it arrives around the end of this decade, the global wholesale gas market is expected to be in a very depressed state, with prices lower relative to where they were when all the SGC-related final investment decisions were taken.