The board of the European Bank for Reconstruction and Development (EBRD) has approved a US$500mn loan to help finance the Trans-Antatolian Natural Gas Pipeline (TANAP).

TANAP will bring natural gas produced from Azerbaijan’s Shah Deniz gas field, and other areas of the Caspian Sea, to Turkey, and also on to Europe. The pipeline will help Azerbaijan to diversify its gas export markets and improve the security of Turkey’s and Southeast Europe’s energy supply.

The TANAP project, together with the South Caucasus Pipeline (SCP) and the Trans-Adriatic Pipeline (TAP), makes up the Southern Gas Corridor (SGC).

The SGC is one of the most complex gas value chains ever developed. It is a major component of EU energy policy to reduce Europe’s dependency on Russian gas. Stretching over 3,500 kilometres, crossing seven countries and involving more than a dozen major energy companies, it is comprised of several separate energy projects representing a total investment of approximately US$40bn.

The key components are the Shah Deniz offshore gas field in Azerbaijan, the SCP in Azerbaijan and Georgia, TANAP in Turkey and TAP through Greece, Albania and Italy.

Through the TAP connection, various existing and proposed pipelines will enable the possible delivery of Caspian gas to destinations throughout Europe, including Austria and Central Europe, Germany and France via Switzerland, the UK, Bulgaria, and Southeast Europe.