Petronas seeks to join Azerbaijan’s gas route leading to Europe

By: Gulgiz Dadashova

Malaysia’s Petronas Company is interested in taking part in the projects of the Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline, which are the key links of the Southern Gas Corridor brining Caspian gas to Europe.

Zainal Abidin Zainudin, Petronas director for Azerbaijan, announced about this on the sidelines of the SPE Annual Caspian Technical Conference and Exhibition in Baku on November 4.

He said the issue will be discussed with all the participants of these projects. “We are considering the accession to these projects, but there are no agreements yet,” said Zainudin.

TANAP project envisages transportation of gas of Azerbaijan’s Shah Deniz field from Georgian-Turkish border to the western borders of Turkey. The project’s total cost is estimated at $10 billion. Currently, the shareholders of TANAP are: the State Oil Company of Azerbaijan (SOCAR) – 58 percent, Botas – 30 percent and BP – 12 percent.

The 878 km long pipeline will connect with the TANAP at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).

Currently, Petronas has a 15.5 percent share in the Shah Deniz field development project and the South Caucasus gas pipeline. It also owns a 12.4 percent stake in the Azerbaijan Gas Supply Company.

Petronas redeemed these shares from Norwegian Statoil, which announced its decision to sell its 20 percent stake in the Trans Adriatic Pipeline, estimated at about $ 400 million. Petronas, seeking to be a major player in Azerbaijan and the region, is an obvious candidate for participation in this project.

Petronas, established in 1974, conducts business in 35 countries. Currently, Petronas ensures about 40% of incomes in the country. The company has turned into an internationally recognizable symbol for the country.

SOURCE: AZER NEWS

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