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Subject

The Tanap gas pipeline project.

Significance

The Trans-Anatolian gas pipeline (Tanap) has a planned capacity of 31 billion cubic metres/year (bcm/yr) but will initially carry 16 bcm/yr from Azerbaijan's Shah Deniz gas field. It is to run from eastern Turkey to the Turkish-Greek border. There, Tanap will connect with the planned 20 bcm/yr Trans-Adriatic pipeline (TAP) that will carry the gas on to Italy and European markets. With the TAP line also moving towards construction, the only questions remaining over Tanap are where the gas for the remaining 15 bcm/yr of capacity will be sourced, and where it will go.

Impacts

The start of work on Tanap will ensure that construction of the planned TAP may now also commence.

SGC will encourage developing more gas fields in the Caspian, the Middle East and Iran.

Developing Tanap will provide Russia with further impetus to develop its Turkish Stream pipeline, which will compete for the same markets.

Barring major problems with existing suppliers, Tanap will secure Turkey's growing gas needs into the next decade.

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