Azeri-Turkish consortium invite tenders for TANAP gas pipeline construction

Azeri-Turkish consortium invite tenders for TANAP gas pipeline construction
Published: 7 August 2013 - 2 a.m.

The Azeri-Turkish consortium developing the Trans Anatolian Pipeline to carry Azeri gas from Shah Deniz across Turkey, Tuesday invited companies and consortiums interested in construction of all or parts of the pipeline to apply for pre-qualification.

In adverts placed in Turkish daily newspapers, TANAP announced that it intends to implement the TANAP project which will include a natural gas pipeline system running from the Georgia-Turkey border to the Turkey-Greece border.

The advert explains that the 1,800 km pipeline will consist of "steel pipe with a diameter of 56 inches (alternatively 48 inches) including a short offshore section and interconnecting lines that may have reduced diameters, block valve stations, pigging stations, metering stations, and pressure reduction stations, compressor stations and related SCAA and telecommunications facilities."

Companies bidding for pre-qualification are required to have previous experience of construction of at least 200 km of oil or gas pipelines of 42 inches or above during the past 15 years.

Companies and consortiums should submit expressions of interest by 5pm local time (1400 GMT) on August 15 to receive a "pre-qualification package," with applications for pre-qualification to be made by September 27.

Invitations to submit bids for the construction of the TANAP line will be made in the first quarter of 2014 with contracts to be awarded in the third quarter of 2014, the advert states.

The TANAP pipeline is being constructed to carry gas from the second phase of development of Azerbaijan's Shah Deniz gas field across Turkey to the Turkey-Greece border.

Currently Azerbaijan's state oil company Socar holds 80% in TANAP Dogalgaz Iletim AS with Turkey's state gas importer Botas holding the remaining 20%.

A spokesman for BP Turkey confirmed to Platts Tuesday that an agreement in principle has been reached between the TANAP consortium and three members of the consortium developing the Shah Deniz field, including BP, Statoil and Total which will see the three take stakes of 12%, 12% and 5% respectively, with Socar reducing its stake in TANAP to 51%.

A spokeswoman for Socar Turkey confirmed to Platts Tuesday that the TANAP line will have an initial capacity of 16 billion cubic meters/year, expandable to 31 Bcm/year.

The pre-front end engineering (pre-FEED) study for the line has been completed and the FEED study is currently underway, she said.

Construction of the TANAP line is expected to start in 2015 with gas supply to Turkey expected to start in 2018 and the flow across the Turkey-Greece border expected to start in 2019 she added.

Of the 16 Bcm/year TANAP will initially carry, 6 Bcm/year will be taken by Turkey under a 15-year purchase agreement between Socar and Botas signed in October 2011, with the remaining 10 Bcm/year to be transited to European markets via the Trans Adriatic Pipeline slated to run through Greece and Albania and across the Adriatic to Italy.


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