TANAP Considers Expansion to Supply More Gas to European Markets
The TANAP Natural Gas Transmission Company is evaluating seven options to increase the capacity of the Trans-Anatolian Natural Gas Pipeline (TANAP).
"We're examining various expansion scenarios with different volume targets," Director-General Saltuk Duzyol told Report. "However, no investment decision has been made, and it requires collaboration beyond the TANAP consortium."
Duzyol explained that expanding the pipeline's capacity hinges on firm interest from European consumers, agreements with pipeline owners and gas producers, and long-term gas purchase contracts between Azerbaijan and European buyers.
"Europe's gas demand signals are unclear," said Duzyol, adding that “decisions on increasing production volumes require investment approval from the gas producer."
He noted that finalizing the capacity increase volume and project budget would depend on signing the agreements. Duzyol estimated a five-year timeframe to raise the pipeline's capacity to 31 billion cubic meters per year, achieved by adding compressor stations instead of constructing a new pipeline.
"Current compressor stations are two, but this can be expanded to six for a 31 bcm capacity," he explained. Duzyol acknowledged that Europe's declining gas demand and decarbonization efforts dampen investment decisions for production increases.
"Despite this, we believe gas remains the most environmentally friendly option for electricity generation compared to coal or nuclear power."
The TANAP pipeline currently has a capacity of 16.2 bcm annually, supplying 5.7 bcm to Turkey and the remaining volume to Europe. According to SOCAR, over 62 bcm of gas has been transported through TANAP as of May 1, 2024.
The pipeline originates at the Turkish-Georgian border and connects to the Trans Adriatic Pipeline (TAP) at the Greek border in Edirne province's Ipsala region. TAP transports natural gas from the Shah Deniz 2 field to European countries. The total length of TANAP is 1,850 kilometers.