TANAP to provide over $1.5B of transport revenue by 2022
The Trans Anatolian Natural Gas Pipeline (TANAP) project was implemented at a cost 45% lower than the original budget, and when the pipeline reaches full transport capacity by 2022, the annual transportation revenue will exceed $1.5 billion, TANAP's General Manager Saltuk Düzyol said Thursday, Daily Sabah reports.
Düzyol was speaking at a news conference held virtually due to the COVID-19 outbreak.
“When we reach full capacity in the project by around 2022, our annual transportation revenue will exceed $1.5 billion. There will be a significant cash flow to our partners as a dividend from the carrying income in proportion to their shares,” he said.
When we look at this from the investor perspective, Düzyol said, it means a significant amount of income for both Turkey's Petroleum Pipeline Company (BOTAŞ) and other investors in the project.
“Of course, we have costs and the credits we use. This income will return to our partners as a dividend after those were paid,” he said.
Düzyol noted that TANAP has been in operation for about 2 1/2 years, stating that commercial gas delivery started on June 30, 2018. TANAP constitutes 1,850 kilometers (1,149.5 miles) of the Southern Gas Corridor, which owns a value chain of approximately $40 billion.
TANAP transported 2 billion cubic meters (bcm) of gas in its first year, within the framework of the project agreements, and that figure has gradually increased, Düzyol said.
The 6 bcm level was reached on June 30, 2020, he said, noting that by the end of 2020, the amount of gas BOTAŞ purchased from TANAP reached 8.4 bcm. The total amount of gas that is set to be transported between June 30, 2020, and June 30, 2021, is 6 bcm, he said.
"Thus, the total amount of gas that reaches Turkey via TANAP will increase to 12 bcm by that date," Düzyol said.