The Trans-Anatolian Pipeline (TANAP) forms part of a new pipeline being run 1,800KM, originating in Schah Denis in Azerbaijan and finally terminating in Brindisi in southern Italy. This links the existing South Caucasus Pipeline and the also already existing Trans Adriatic pipeline, and should offer not only greater guarantee of supply in times of geopolitical turmoil, but also provide larger volumes of natural gas to Western and Central Europe, in turn, theoretically driving down price as the commodity becomes saturated.
Announced initially in 2011, the pipeline is set to be completed in 2018, with an initial annual volume of 16Billion Cubic metres. Many are welcoming the prospect of diversification away from Russian assets, as well as the prospect of reduced prices this could bring. Many analysts are remaining bearish on trading volumes, and indeed live delivery of this as the pipeline isn’t in place yet, however, with developments in distribution over the last few decades, the problems encountered in previous, smaller projects are unlikely to be repeated.
Jim Corley, Senior Broker at True