Europe’s Southern Gas Corridor - the TANAP conundrum

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04 April 2014

Europe’s Southern Gas Corridor - the TANAP conundrum

Report summary

The development of Europe's Southern Gas Corridor is well underway following the Final Investment Decision on Shah Deniz Phase Two and the Resolution to Construct on the Trans-Adriatic Pipeline, in December 2013.  First Azerbaijani gas into Italy is now expected in 2019.  But concerns have arisen about the commerciality of the Trans-Anatolian Pipeline, with Statoil and Total opting not to join the project.  TANAP is a central part of the Southern Corridor.

Table of contents

    • TANAP timeline
    • Misaligned partnerships
  • Strategy matters more than profit
  • The ill-fated Nabucco project has demonstrated that it is costly to pipe gas across Turkey. The key challenge for the TANAP partners is to ensure that the economics of the midstream do not undermine the commercial basis for Shah Deniz Phase Two, and there have been some concessions in this regard. The Turkish government has granted tax breaks:
  • Old issues, new approach

Tables and charts

This report includes 5 images and tables including:

  • The route of the Southern Corridor
  • TANAP tariff - Shah Deniz Phase Two delivered cost into Italy
  • TANAP tariff sensitivity
  • Gas netback prices to Shah Deniz
  • Europe’s Southern Gas Corridor - the TANAP conundrum: Image 2

What's included

This report contains:

  • Document

    Europe’s Southern Gas Corridor - the TANAP conundrum

    PDF 5.08 MB

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