TAP, TANAP pipelines are low-risk projects: Socar

The Trans-Adriatic (TAP) and Trans-Anatolian (TANAP) gas pipeline projects fall into the low-risk category, Socar President Rovnag Abdullayev said in an interview with The Business Year magazine. 

"TAP and TANAP are very well positioned due to their strategic importance for Europe's energy security", he said. Therefore, Abdullayev noted, these projects are supported not only by the participating member countries, but also by the European Union (EU) as a whole. 

"Being aware of potential risks and challenges, we constantly work with our partners to identify risks and implement effective risk management strategies, which is an ongoing process," he said. 

Abdullayev went on say that from an international perspective based on that information, TAP and TANAP fall into the low-risk category. 

"However, we are exposed to the risk of rising steel prices due to the lack of long-term hedging instruments," he added. 

Another potential risk is the disruption of materials supply at the projects' construction stage, preventing timely execution, Abdullayev said. 

"We have understood and evaluated the possible impact of these risks on our projects; therefore, we have taken the appropriate pro-active measures to mitigate them," said.

Bakudaily.az