European Bank for Reconstruction and Development

EBRD to finance Trans-Anatolian pipeline

LONDON, May 26, 2016 – The European Bank for Reconstruction and Development (EBRD) has begun negotiations with Azerbaijan and Turkey to finance the Trans-Anatolian gas pipeline, a bank official said on Wednesday.

Svitlana Pyrkalo, principal adviser for EBRD, said that although talks have started, an estimated investment had yet to be worked out.

The pipeline will stretch from BP’s Shah Deniz 2 development on the Caspian Sea in Azerbaijan, through Turkey and onto Greece. The project aims to transport 16 bcm (565 bcf) of gas per year by the middle of 2018. It will cost around USD 10 billion to build the 1,850-km asset.

Turkey will be the first customer, with aims to cut its dependence on Russian import of gas by purchasing 6 bcm (212 bcf) per year through the pipeline. An additional 10 bcm (353 bcf) per year is planned to be delivered into Europe by 2020 when it is connected to the Trans-Adriatic Pipeline.

EBRD has already put aside investments of USD 2.9 billion for Azerbaijan to begin 164 projects. The bank also said it would give USD 1.7 billion for the Trans-Adriatic Pipeline earlier this year.

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