In the midst the discussions on construction of a pipeline to transport natural gas from the Caspian Basin to southern Europe which have gone on for several years, Turkey and Azerbaijan signed an agreement on December 26 in Ankara to build the Trans-Anatolian gas pipeline from sea port in Azerbaijan to Turkey.
The length of the planned pipeline is 1,240 miles (2,000 km). It will have a capacity of 16 billion cubic meters (bcm) and cost about €7 billion ($9.2 billion). State Oil Company of Azerbaijan Republic (SOCAR) will form a joint venture with Turkish pipeline operator Botas Boru Hatlari Ile Petrol Tasima AS and oil company Turkiye Petrolleri AO where the former will hold an 80% majority stake. The first delivery is planned to be done in 2017. The southern routes for delivery of natural gas to Europe have been seen as running counter to Russian energy policy which have dominated the gas supply business to Europe for the last decade. Nabucco pipeline, as the largest project in the talks since early 2002, was intended to reduce the dependency of European states on Russian resources. Nabucco, with the length of 2,512 miles (4,042 km) and cost of €7-12 billion is planned to deliver 31 billion bcm a year. It is believed that the Trans-Anatolian pipeline will be linked to Nabucco.
Earlier in September, the officials of BP announced their own proposal to launch South East Europe pipeline from eastern Turkey to southern Austria. At a total length of 2,400 miles (3,800 km) with 620 miles (1,000 km) to be laid anew (the rest through existing pipelines), BP’s intent was to reduce the costs for the investors. Its capacity – 10 billion bcm.