$5 billion Azerbaijani gas deal to tighten Turkey’s energy corridor role

Turkey has inked 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 Yıldız and his Azerbaijani counterpart, Natig Aliyev, signed a contract in Ankara on Monday to construct a natural gas pipeline, named the Trans Anadolu Natural Gas Pipeline, 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.

With the deal, the State Oil Company of the Azerbaijani Republic (SOCAR), the state-owned Turkish Pipeline Corporation (BOTAŞ) 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.

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