Turkey and Azerbaijan sign gas pipeline agreement

Turkey signed a deal at an estimated value of $5 billion to carry Azerbaijani gas to European markets via a pipeline to cross its borders, adding to the country's emerging role as a key energy supply corridor in its region. Turkish Energy and Natural Resources Minister Taner Yildiz and his Azerbaijani counterpart, Natig Aliyev, signed an agreement in Ankara yesterday to construct a natural gas pipeline, named the Trans Anadolu Natural Gas Pipeline, in order to transfer gas from Azerbaijan's Shah Deniz fields to Europe. The pipeline is designed to carry 10 billion cubic meters (cbm) of natural gas to EU markets. As part of the agreement, the State Oil Company of the Azerbaijani Republic (SOCAR), the state-owned Turkish Pipeline Corporation (BOTAS) and the Turkish Petroleum Corporation (TPAO) will set up a consortium for the construction of the pipeline. Energy Ministry officials said third-party international oil and natural gas companies would be allowed to join the consortium later during the construction process. The consortium plans to start construction as soon as possible -- in 2012 -- in order to complete it by late 2017. Providing project details, Yildiz said the Turkish side will have a 20 percent stake in the consortium, while Azerbaijan's share is 80 percent. Yildiz asserted that the Trans Anadolu pipeline was not an alternative to other planned pipelines to run through Turkish territories. Yildiz said at yesterday's signing ceremony that Trans Anadolu would contribute to efforts to diversify west-bound energy supply routes."