ANKARA: Turkey has agreed with Azerbaijan to raise its stake in the multi-billion dollar Trans-Anatolian natural gas pipeline project (TANAP) from to 30 percent from its current 20 percent, energy sources close to the matter told Reuters on Tuesday.
TANAP aims to start carrying 16 billion cubic metres (bcm) of gas per year by 2018 or 2019 from Azerbaijan's Shah Deniz II field in the Caspian Sea, one of the world's largest gas fields.
It will be built from the Turkish-Georgian border to Turkey's border with Europe, with its preliminary total cost estimated at $20 billion.
Turkish Energy Minister Taner Yildiz confirmed Turkey's willingness to increase its stake in the project. "We are hoping to raise our stake to 30 percent and we will be holding talks today in Baku about this," Yildiz said before departing for the Azeri capital.
Azeri state energy company SOCAR has already sold 12 percent stake to BP, a member of the Shah Deniz II consortium, industry sources and energy officials said. SOCAR will sell a further 10 percent to Turkey, which currently holds 20 percent in the project, while retaining the remaining 58 percent, sources said.
A final deal on the new ownership structure is likely to be struck in the first quarter of 2014, officials and energy sources said.
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