The commissioning of the 1800km long TANAP pipeline 56 inches in diameter is scheduled for mid of 2018. Major construction work is to start in 2015. Its initial carrying capacity is scheduled at 16bcm. It will reach 23 bcm and 31 bcm in 2023 and 2026 respectively. Out of 16bcm to be supplied at initial stage, Europe and Turkey will receive 10 bcm and 6 bcm respectively. TANAP gas pipeline is designed for transportation of Azerbaijani gas to be produced within the framework of Shah Deniz II from the Georgian-Turkish border till the western borders of Turkey. 

The parties of the Shah Deniz project created a pipeline company in 2003 and commissioned the South Caucasus Pipeline (SCP) in July 2007. This pipeline begins at Sangachal terminal of Baku, crosses the territories of Azerbaijan, Georgia and reached the Turkish city of Erzurum where it shall be linked to the pipeline system of the Turkish Company BOTAŞ. Total length of the pipeline makes 971km. The carrying capacity is 20 bcm. 

The project of expansion of SCP includes laying of the pipeline 48 inches in diameter (the thickness of the pipeline walls will total 16.7mm) in parallel to the pipeline operating in Azerbaijan and construction of two large pump stations in Georgia. Two sections of the pipeline will be laid in Georgia for having it linked with Azerbaijani section (6km) and TANAP (2.5km). 

Since the very beginning of the 17th century the fire land located in the southern and western coast of the Caspian has attracted attention of the Europeans. Among numerous facts, mentioned in the Arab sources, noteworthy is the historical fact about Duke Schleswig-Holstein (today it is the same named federal Land Schleswig-Holstein in modern FRG), the first European, who arranged the trip of two expeditions (1633-1635, 1635-1639) to these lands. 

After visiting Azerbaijan in the 17th century, the German scientist Adam Oelschlaager (Olearius) noted “a considerable amount of special oil on the surface of the Caspian Sea and belches coming out of the land around the Barmagh Mountain near Baku”. Secretary of the Swedish embassy in Iran Kämpfer is describing a “blazing steppe” posing a beautiful sight. 

Then, for the first time in 1825 a German traveler Eichwald presented a full description of oil production in Surakhany (near Baku), description of colorful eternal flames and cult of fire worshippers from India in his work Reise auf dem Caspischen Meere und Caucasus. 

Not much has changed since then. The interest of the Europeans to ancient land of eternal fire does not diminish but moves toward the Caspian where big natural gas reserves were revealed through XX-XXI centuries. Modern technologies enabled Azerbaijani gas to overcome thousands of km and reach gas rings of the European consumers. As to the Europeans, they used them for describing things happening in the Caspian by means of video-addressing. 

Attending the ceremony of laying of the foundation of the South-Caucasian Gas Pipeline on the symbolic date, September 20 (the date of signing of the first PSA contract on exploration, development and production sharing of Azeri, Chyrag and Guneshli fields in the Azeri sector of the Caspian – read the 89th issue of Caspian Energy), President of Azerbaijan Ilham Aliyev and other participants left symbolic imprints of their palms on half-finished facilities. Then, President of Azerbaijan Ilham Aliyev, Prime Minister of Georgia Irakli Garibashvili, Minister of Energy and Natural Resources of Turkey Taner Yildiz, Prime Minister of Greece Antonis Samaras, President of Bulgaria Rosen Plevneliev, Minister of Energy of Albania Damian Gjiknuri, Deputy Minister of Economic Development of Italy Claudio de Vincenti, Prime Minister of Montenegro Milo Djukanovic, Minister for Trade and Investment of the United Kingdom of Great Britain and Northern Ireland Lord Livingston, Special Envoy of the US State Department for International Energy Affairs Amos Hochstein, Minister of Energy of Azerbaijan Natig Aliyev and President of SOCAR Rovnag Abdullayev left their signatures on the first pipe that would be laid into the foundation of the Southern Gas Corridor. After that the foundation of the Southern Gas Corridor was laid.

“Energy security is the issue of national security of every country. Nowadays, it is impossible to split energy from policy and economy. All of us, together with our partners, will be involved in ensuring energy security of Europe. Shah Deniz gas field is the main source. However, the amount of gas reserves in Azerbaijan is much higher. Our proven reserves of gas total 2.5 trillion cubic meters. Our assumed and anticipated reserves make 4-5 trn cubic meters”, President of Azerbaijan Ilham Aliyev says. 

According to him, Caspian gas is the only new source for Europe. “There are also other sources that Europe has been using. The volumes of these sources may grow. However, the new source at present is Azerbaijan. I am confident that diversification of energy security routes, joint work of producing, transit and consuming countries will provide success since a very serious coordination must be carried out in this process. There have been only three countries (Azerbaijan, Georgia and Turkey) involved in our gas and oil projects before. Starting from this day we step into the process of broad international cooperation. Azerbaijan will supply its resources to the world market as a gas producing country. After that Georgia, Turkey, Greece, Bulgaria, Albania and Italy will be able to join this project. The following stage shall involve Montenegro, Croatia and other countries. Therefore, it requires conduction of the coordination work on a very high level”, the head of Azerbaijan state noted. 

As it is said in the video-address of the President of the European Commission J.M. Barroso at the ceremony dedicated to the 20th anniversary of the Contract of the Century, “Three years ago, in January 2011 I and President Ilham Aliyev signed a Joint Declaration in Baku about the Southern Gas Corridor. Since then the European Commission, Partner-Countries and companies started a joint work over the fulfillment of these plans. It will take five years to complete the construction of all pipelines. After construction, this corridor will overcome a 2000km long distance and connect the Caspian Sea with the center of the European Union by reaching the Caucasus through Turkey, territories of Greece and Albania. However, this project does not include only a pipeline but also an important strategic, energy corridor of the 21st century. I am convinced that the Southern Gas Corridor will be a project of the 21st century”, President of the European Commission emphasized. 

A centuries-old history of modern Azerbaijan broadly underlines a growing role and big perspective of Caspian energy resources for global energy markets. 

June 26, 2012 (Istanbul) – 

Azerbaijan and Turkey sign intergovernmental agreements on construction of the TransAnatolian gas pipeline (TANAP). Signed were an Intergovernmental agreement between Turkey and Azerbaijan, a preliminary agreement between BOTAŞ and SOCAR about organization issues in the project company TANAP, a transit agreement with the government of the transit state and a governmental agreement of the owner-country. 

November 6, 2012 (Baku) – 

Parliament committee of Milli Majlis of Azerbaijan approves an intergovernmental agreement signed between Azerbaijan and Turkey for construction of the 1790km long TANAP gas pipeline (initial carrying capacity -16 bcm) designed for delivery of large Azeri gas volumes to the Turkish market and further to Europe.

December 16, 2012 (Baku) – 

SOCAR and BP sign memorandum on expansion of the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum). According to the document, SOCAR is to become operator of new project and own 60% of stake.   

October 29, 2013 (Baku) – 

President of the Republic of Azerbaijan Ilham Aliyev signs an order “On measures associated with the transportation of Azerbaijani natural gas to the world market along the Southern Gas Corridor. A state commission on full scale development of the gas condensate field Shah Deniz, expansion of the South Caucasus pipeline (SCP), implementation of the TransAnatolian (TANAP) and TransAdriatic (TAP) pipeline projects is created.

February 22, 2013 (Baku) - 

Milli Majlis (parliament) ratifies memorandum of mutual understanding signed between governments of Azerbaijan and Turkey about transit and construction of independent pipeline (TransAnatolian gas pipeline – TANAP) for transportation of Azerbaijani gas across Turkey. 

December 17, 2013 (Baku) – 

Final investment decision is made on Shah Deniz II. The capacity of existing pipelines in Turkey will be increased. TAP and TANAP projects gain an investment support.

September 10, 2014 (Baku) – 

President of the Republic of Azerbaijan Ilham Aliyev signs an Order “About measures for more effective organization of the process of getting rights for lands and other non-movable assets due to the project of expansion of the South Caucasus Pipeline”. 

September 20, 2014 (Baku) – 

Ceremony of the Southern Gas Corridor foundation laying takes place. Completion of the construction of TANAP and SCP is scheduled for 2018.