British supermajor BP plc BP intends to become a stakeholder in the multi-billion dollar project – Trans-Anatolian Natural Gas Pipeline (“TANAP”) – within the coming two months.
BP, which has wanted a 12% stake in the TANAP project since 2013, expects to ink a deal for the same soon.
The main objective of the TANAP project is to decrease Europe's dependence on Russia for gas. TANAP is anticipated to transfer 16 billion cubic meters (bcm) of gas a year from Azerbaijan's Shah Deniz II field in the Caspian Sea. A consortium, which is being led by BP, is in charge of the development of the Shah Deniz II field – one of the largest gas fields in the world.
The pipeline which starts at the Turkish-Georgian border will run all the way to where Turkey forms borders with Bulgaria and Greece. Per preliminary estimations, the pipeline is expected to cost about $10–$11 billion.
The BP-led consortium is making progress on the projects in Georgia and Azerbaijan despite oil prices falling globally. In 2015, the consortium proposes to spend about $6 billion on the Shah Deniz II and the South Caucasus Pipeline Expansion (“SCPX”) projects.
Last week, the TANAP project was unveiled. Construction of the 1,850 kilometer (1,150 mile) pipeline is anticipated to be finished by the end of 2018 and gas deliveries are scheduled to commence from Shah Deniz II to Europe in 2019.
Some other firms hold interests in the TANAP project as well. These include SOCAR , which is an Azeri firm with 58% stake and Turkish pipeline firm Botas, which raised its stake to 30% from 20% in 2014.
BP currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks from the oil and gas sector include Valero Energy Partners L.P. VLP, Western Gas Equity Partners, L.P WGP and Hallador Energy Company HNRG. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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