Turkey signs credit deal for stake in Shah Deniz gas field

“We are aiming to double our shares in the projects following years” said Turkish energy minister Taner Yildiz.

Turkey signs credit deal for stake in Shah Deniz gas field

World Bulletin / News Desk

A $1 billion credit deal to finance Turkish Petroleum Corporation's (TPAO) purchase two months ago of French company TOTAL's 10 percent share in one of the largest gas fields in the world - the Shah Deniz gas field in the Caspian sea, was signed on Thursday.

TPAO announced that a seven-year loan from state-owned Vakifbank and Turkiye Is Bankasi was signed.

“TPAO will contribute $500 million to finance of the project” said Taner Yıldız, Turkish Energy Minister at the ceremony in Ankara, “Totally "$45 billion will be spent for the projects including Trans Anatolian Pipeline Project (TANAP) and Trans Adriatic Pipeline (TAP), in the next 4 years”.

“We are aiming to double our shares in the projects following years” Yildiz added. “Money is important but not more than owning the petroleum”

The purchase increases TPAO’s share from 9 to 19 percent in Shah Deniz and the South Caucasus Pipeline and makes Turkey the second biggest shareholder after British Petroleum (BP), which has 28.8 percent and operates the gas field.

The cost of the ten percent share is quoted as $1.45 billion, said Turkish energy officials.

The South Caucasus Pipeline was built to export Shah Deniz gas from Azerbaijan to Georgia and Turkey. The pipeline starts from the Sangachal terminal near Baku. It follows the route of the Baku-Tbilisi-Ceyhan (BTC) crude oil pipeline through Azerbaijan and Georgia to Turkey, where it is linked to the Turkish gas distribution system

Shah Deniz is among the largest gas fields in the world with nearly 1.4 trillion cubic meters of natural gas. Apart from Azerbaijan, gas extracted from Shah Deniz field is exported to Georgia and Turkey.

The 692 kilometres (430 mile) South Caucasus Pipeline, which began operation at the end of 2006, transports gas from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Turkey, through Georgia.

Fall in Turkish natural gas imports

Turkey’s imports of natural gas fell slightly in 2013, the Turkish Energy Market Regulatory Authority (EMRA) announced on Thursday.

Compared to the previous year, gas imports fell by 1.42 percent to 45.2 billion cubic meters. Nearly 60 percent of the natural gas came from Russia, with 9 billion cubic meters from Iran and 4.3 billion cubic meters from Azerbaijan.

In addition, Turkey imported 6.1 billion cubic meters of liquefied natural gas last year – 13 percent of Turkey’s total natural gas imports.

The report also revealed that Turkey’s natural gas production dropped by 15 percent in 2013, totaling 537 million cubic meters. More than half of Turkey’s natural gas production took place in the north-western province Tekirdag.

Natural gas production in Turkey has been decreasing since 2008 as reserves run out.

Güncelleme Tarihi: 21 Ağustos 2014, 14:26