The European Investment Bank (EIB) has approved €932 million ($1.15 billion) in financing for the Trans Anatolian Natural Gas Pipeline (TANAP), a statement from the Bank said on Thursday.
'The project is a key component of the Southern Gas Corridor, an initiative identified by the Council of Ministers, the European Commission, and the European Parliament as strategically important for the EU's energy policy,' the statement read.
The European Bank for Reconstruction and Development (EBRD), the World Bank and Asian Infrastructure and Investment Bank (AIIB) have already confirmed financing for the construction of the TANAP pipeline, according to the EIB.
The TANAP project will help the delivery of energy supplies from the Caspian Sea through to Europe along the Southern Gas Corridor (SGC) and make an important contribution to energy security and diversification.
The SGC includes gas infrastructure investments in a 3,500-kilometer-long pipeline running through six countries at a total cost of $40 billion.
The key components are the Shah Deniz offshore gas field in Azerbaijan, the Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP in Turkey and the Trans Adriatic Pipeline (TAP) through Greece, Albania and Italy. The initial annual throughput capacity will be up to 16 billion cubic meters, which is equivalent to the annual energy consumption of more than 10 million households in the region.
The corridor includes three major pipeline projects: the expansion of the South Caucasus Pipeline through Azerbaijan and Georgia, the construction of the TANAP across Turkey and the construction of the TAP through Greece, Albania and into Italy.
By Huseyin Erdogan
Anadolu Agency
energy@aa.com.tr