Of the total financing package, $400m is allocated to the Southern Gas Corridor (SGC) Closed Joint Stock Company with the guarantee of Azerbaijan while the remaining $400m is committed to the Boru Hatlari Ile Petrol Tasima Anonim Sirketi (BOTAS) with the guarantee of Turkey.
The TANAP project involves construction of a 1,850km-long pipeline to bring Azerbaijan's natural gas directly to Europe.
World Bank Europe and Central Asia vice-president Cyril Muller said: “We are very pleased to be part of a coalition of partners supporting TANAP, a component of the transformational Southern Gas Corridor, which will bring natural gas from the Caspian Sea to Europe.
“TANAP will not only boost competitiveness and create economic opportunities for people in Azerbaijan and Turkey, it will also support regional trade, improve connectivity, and support energy security in Turkey and in Europe.”
The project is designed to supply gas from Azerbaijan's Shah Deniz-2 gas field and other areas of the Caspian Sea, to Turkey and further to Europe.
Expected to be commissioned in 2018, the Tanap will connect to the planned Trans-Adriatic Pipeline (TAP) that will transport gas to Europe via Greece, Albania, and Italy.
The Tanap pipeline will also be connected with the expanded South Caucasus Pipeline (SCP).
Azerbaijan is estimated to hold gas reserves of more than three trillion cubic meters.
In addition to helping in diversifying Azerbaijan’s gas export markets, the TANAP project is expected to improve the security of the energy supply in Turkey and South Eastern Europe.
The pipeline is jointly owned by BP (12%), Azerbaijan's state-owned oil company Socar (58%), and Turkish oil and gas group Botas (30%).
