BP monetizes stake in TANAP as Apollo acquires 25% share for $1 billion

BP and Apollo have announced that Apollo-managed funds have reached an agreement to purchase a 25% non-controlling stake in BP Pipelines (TANAP) Ltd, also known as BP TANAP.

BP TANAP is the subsidiary that holds BP's 12% interest in TANAP, the pipeline responsible for transporting natural gas from Azerbaijan to Türkiye, Caliber.Az reports, referring to domestic media.

Under the terms of the agreement, Apollo funds will acquire the non-controlling shareholding in BP TANAP for approximately $1.0 billion. The proceeds from this transaction will contribute to BP’s $20 billion divestment and other proceeds program.

While this deal allows BP to monetize its stake in TANAP, BP will remain the controlling shareholder of BP TANAP. It will also retain its long-term commercial and strategic interest, including governance rights, in the pipeline, which is an essential part of the gas value chain for the BP-operated Shah Deniz gas field in Azerbaijan.

The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and the approval of TANAP shareholders.

TANAP transports gas from Stage 2 of Azerbaijan’s Shah Deniz field, located on the Georgian-Turkish border, to Türkiye’s western border. The total cost of the TANAP project was less than $7 billion.

Initially, the pipeline’s capacity was set at 16 billion cubic meters of gas per year, with the potential to expand to 31 billion cubic meters annually. Of this, around six billion cubic meters of gas are delivered to Türkiye, while the remaining volume is supplied to Europe.

The filling of the TANAP pipeline across Türkiye began in late January 2018. The official ceremony for the launch of Phase 0 of TANAP took place on June 12, 2018, in the Turkish city of Eskisehir, with the first commercial gas deliveries to Türkiye commencing on June 30, 2018. The connecting ceremony for TANAP's link to Europe occurred on November 30, 2019, in Ipsala town, Edirne province, Türkiye.

To expand TANAP’s capacity, additional compressor stations will need to be added. To reach a throughput of 24 billion cubic meters per year, several more stations will be required. Achieving the full capacity of 31 billion cubic meters per year will necessitate the installation of seven compressor stations.

By Tamilla Hasanova