Presentation at TUROGE 2014 (Turkish International Oil and Gas Conference) on the Trans Anatolian Natural Gas Pipeline Project. The speaker provides an update on the TANAP project. By Saltuk Düzyol - General Manager, TANAP

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Trans Anatolian Natural Gas Pipeline Project

2. TANAP’S VISION AND MISSION
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TANAP’S VISION:
“To create a new gas supply corridor from Azerbaijan to Europe in order to
enhance supply security and diversity in Turkish and European Gas Markets
and strengthen the economic cooperation among the countries in the supply
chain by stimulating the investments.”
TANAP’S MISSION:
“To build and operate a secure and reliable gas transmission pipeline system to
the highest quality, health and safety, environmental and social standards.”

3.  Existing/Potential Shareholders: SOCAR, BOTAŞ and BP
 FID (Resolution to Construct the P/L): 17 December 2013
 Initial investment for Phase-1: 16 bcma (6 bcma for BOTAŞ and 10 bcma for
TAP)
 Agreements that constitute the legal and commercial basis for the Project:
 Intergovernmental Agreement between Republic of Turkey and Republic of
Azerbaijan (İmza Tarihi: 26 Haziran 2012, Yürürlük Tarihi: 4 Nisan 2013)
 Host Government Agreement between Republic of Turkey and SOCAR
(HGA) (İmza Tarihi: 26 Haziran 2012, Yürürlük Tarihi: 4 Nisan 2013)
 Shareholders Agreement among SOCAR - BOTAŞ - BP
 Gas Transportation Agreement between TANAP and Shah Deniz
Consorsium
 Gas Transportation Agreement between TANAP and BOTAŞ
BACKGROUND
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PROJECT SCOPE
PIPELINE
 1,810 km (From Georgia/Turkey border to Turkey-Greece border)
- 56“ - 1,333 km. (From Georgia-Turkey border to Eskişehir off-take point)
- 48“ - 458 km. (From Eskişehir off-take point to Turkey-Greece border)
- 2 x 36“ - 19 km. (Dardanelle Strait Crossing)
- 30“ - 31 km. (Lateral line to Eskişehir off-take point)
STATIONS
 Compressor stations (CS)
- Phase-1 (16 bcma) : 2 CS
- Phase-2 (24 bcma) : + 1 CS (Total 3)
- Phase-3 (31 bcma) : + 2 CS (Total 6)
 Fiscal Metering Station (FMS) : Georgia-Turkey border
 Metering Station (MS) : Turkey-Greece border
 2 x Pressure Reduction & Metering Station (PRMS): Eskişehir ve Thrace off-take points
 Pig launchers/receivers and block valves
TELECOM-SCADA SYSTEM

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FEED PROGRESS
• FEED for Onshore Pipeline is completed as of April 2014 as planned.
• FEED completion for Stations is expected in early May 2014.
ROUTE SELECTION
• Centerline definition based on surveys and field studies completed for 1810 km
up to Greece Border - 100%
GEOHAZARD ASSESSMENT
• Geohazard assessment by EC with support of international consultant for
landslides completed for the entire route
• Identification of active faults and preliminary assessment of displacement
values completed, 13 faults are identified and will be assessed further during
detail engineering.
• 10 different locations found critical in 233 km section of the centerline.
• After re-routings, Rev. H route (100%) issued based upon field studies and
consultations with public authorities.
ENGINEERING STUDIES

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ROUTE SELECTION
Main Route Selection Principles Applied
The process is constraint driven to “identify a technically feasible and safe
pipeline centerline, respectively AGI site with reasonably low impact on
environment and land use”
Constraint Based Principles:
• Environment (avoid no-go areas, minimize crossing of protected areas)
• Public Health and Safety (distance to settlements)
• Constructability (topography, geological extremities)
• Structural Integrity (geohazards – considered as key issue in Tanap route)
• Land Use (avoid areas of distinct utilization)
• Infrastructure (minimize crossings of major infrastructure)
• Construction cost (pipeline length)

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ROUTE SELECTION
Methodology Applied for Route Selection Process
• Pre-definitions: Entry & exit points and areas for off-takes
• Project Corridor: selection based on evaluation of major constraints high level
“resistance factors” by GIS application (desktop study)
• Route alternatives inside project corridor: evaluation based on refined
“resistance factors” (ESIA no-go) by GIS application (desktop study)
• Preferred Corridor – 2 km: further refined evaluation of resistance data (e.g.
geohazard mapping) by GIS application, basically as desktop study, supported
by engineering judgment
• Specified Corridor - 500 m: as combined field and desktop exercise with
refined geohazard assessment (aerial photo + DTM available)
• Centerline (construction corridor) as combined field and desktop exercise with
detailed geohazard assessment and consideration of ESIA and Land
Acquisition issues (aerial photo + vector data available)

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ROUTE SELECTION
Route - Overview
Approx. (predominant) Terrain Conditions
Plain to hilly 40%
Hilly to mountainous30%
Mountainous 30%
Greece Offshore Eskisehir Ankara Sivas Erzurum Kars Posof
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00

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PIPELINE ELEVATION PROFILE (ONSHORE)
Thrace Offtake
1,739.50 km

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PIPELINE ELEVATION PROFILE (OFFSHORE)
Thrace Offtake
1,739.50 km

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12. MAJOR CHALLENGES
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13.  Tight Project Schedule (1st Gas to BOTAŞ: June 2018)
 Largest diameter (56/48 inch) and longest (1810 km) pipeline ever built in
Turkey
 Handling and transportation problems (Use of 1.200.000 tonnes of X70 steel /
160.000 steel pipes (˃ 8 tonnes each) / 3 steel pipes only per wagon/trailer)
 High altitude regions with short construction
season - Only 110 days in mountainous regions
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MAJOR CHALLENGES

14.  Number of crossings (roads, railways, existing pipelines, wet lands, rivers and
Dardanelle Strait with congested traffic)
 Mountaineous terrain with steep slopes,
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MAJOR CHALLENGES

15.  Land acquisitions and expropriations by Land Rights Entity (BOTAŞ)
 Expropriation Decision by BOTAS/LRE
 Decision of Public Interest (by MENR)
 Authorization to apply for Article 27 (by Cabinet of Ministers)
 Paralelism protocol with BOTAŞ for existing pipelines signed
 Approval and publication of Livelihood Restoration Plan / Resettlement Action
Plan (in progress)
 Land acqusitions based upon amicable solutions
 Collection of parcel and owner information completed for 500 m corridor
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LAND ACQUISITIONS AND EXPROPRIATIONS

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 EIA/ESIA study incomplaince with lender (IFC, EIB) requirements
 1 x Local and 2 x International ESIA consultants
 Local ESIA process is in progress with MoEU
 Public Participation Meetings (PPMs) conducted in March 2013 in 21
provinces and 56 districts along the route as preliminary engagement of ESIA
process
 Stakeholder Engagement Plan (SEP) finalised by Q4 of 2013
 Complementary public hearing meetings conducted as a part of overall SEP
 Grievance Mechanism Framework prepared in accordance with existing
national and international policies, procedures, laws and regulations
 Stakeholder Engagement and Grievance Mechanism Management (ongoing)
 Submission of EIA/ESIA Report to MoEU for approval: April 2014
 ESIA approval by ESIA Advisor : June 2014
 EIA approval by MoEU expected in August 2014
EIA/ESIA

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EIA/ESIA
PUBLIC PARTICIPATION

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EIA/ESIA
STAKEHOLDER ENGAGEMENT AND GRIEVANCE MANAGEMENT
Registeration Monitoring Reporting

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PROCUREMENT AND CONTRACTING
 Procurement of LLIs
 Line pipes (prequalification completed, ITB issued, bid submissions in
April 2014)
 Block valves and actuators (Prequalification on-going)
 Turbo compressor units (ITB documents under preparation)
 Selection of EPC Contractors for Onshore Pipeline Construction
(prequalification completed, issuance of ITB to short-listed companies in
April 2014)
 Selection of EPC Contractors for Stations (prequalification on-going)
 Selection of EPC Contractors for Offshore Pipeline Construction
(preliminary studies on-going)
 Selection of EPC Contractor for Telecom/Scada System (prequalification
package under preparation)
ʺ Start of Construction of Onshore Pipeline expected in April 2015ʺ

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THANK YOU