TANAP FROM THE PERSPECTIVE OF TURKEY’S BECOMING AN ENERGY CORRIDOR AND ENERGY HUB
Media Outlet : Anadolu Agency
Date of Publication : 05.07.2018
Writer : Assoc. Prof. Elif Nuroğlu
Translation Method : Summary Translation
Source of Image : AA

Trans Anatolian Pipeline Project (TANAP) was inaugurated on June 12, 2018. First natural gas transfer was made to Turkey on June 30, 2018. TANAP constitutes the Turkey stop of the Southern Gas Corridor project which will carry natural gas from Shah Deniz 2 field to Europe via Turkey.

It is possible to assess the potential impact of TANAP from four perspectives, namely energy supply security, socio-economic impact, political and economic stability and international relations.

Energy supply security

Since Turkey imports 99 percent of the natural gas it consumes and is dependent on Russia for 60 percent of its natural gas, it is important for Turkey to diversify its energy resources and reduce dependence on a single country for energy.

This argument applies both for Turkey and the European countries that the natural gas is destined to.

Socio-economic impact

Turkey will charge a fee for the transit of natural gas through Turkey for sale in Europe. One should also keep in mind that BOTAŞ, which holds a 30 percent stake in the whole project, will benefit from the operating revenues as well. As a consequence, TANAP is projected to have a positive socio-economic impact both in the investment and operation phases.

Political and economic stability

Turkish and foreign investors should believe in the stability of the country so that Turkey can take firm steps towards ensuring the security of the energy supply of the European countries and itself in conjunction with TANAP and other energy projects. The way for the investors to reach the soft loan and cheap credit might be possible via the low-risk rate of the countries.

In this regard, the results of June 24 elections will enable the investors in the energy sector to work in a stable atmosphere for the next five years.

Perspectives of international relations

The European countries such as Turkey are greatly dependent on Russia’s natural gas. Therefore, just before TANAP’s ground-breaking, the EU Commission expressed its desire to jointly work with Turkey regarding the energy policies. Moreover, it is known that TANAP further strengthened the relations with friendly and brotherly country, Azerbaijan, during the preparation, investment, construction and operation processes.

When does Turkey become a center of energy?

Together with the activation of TANAP project, the evaluations are concentrated on the issue whether Turkey is a transit country or a center of energy. At this point, it would be right to describe TANAP as an important building stone for Turkey’s long-term energy plans. If Turkey would be a center of energy, this might be achieved with the sustainability and completion of TANAP and similar projects.