BP Strikes Deal with Apollo for Stake in TANAP Pipeline

UK-headquartered energy giant BP has announced a new deal with Apollo-managed funds to divest a minor non-controlling stake in BP Pipelines (TANAP), the subsidiary that holds its interest in the Trans-Anatolian natural gas pipeline (TANAP). This pipeline carries natural gas from a giant offshore field in Azerbaijan across Türkiye.

The agreement involves Apollo Funds investing approximately $1 billion for a 25% non-controlling shareholding in BP Pipelines (TANAP), which represents BP’s 12% interest in TANAP, a crucial component of the Southern Gas Corridor (SGC) pipeline system. This partnership follows a previous deal between the two companies in November 2024 regarding the Trans Adriatic Pipeline (TAP), the final segment of the SGC.

Strategic Partnership for Energy Infrastructure

William Lin, BP’s Executive Vice President of Gas & Low Carbon Energy, expressed enthusiasm about the extended partnership with Apollo, stating, “This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe. BP and Apollo will continue to explore further strategic cooperation and mutually beneficial opportunities.”

The acquisition allows Apollo to deepen its involvement in the energy asset, while enabling BP to realize value and retain strategic governance rights in the pipeline joint venture. This deal is viewed as a significant step in the gas value chain for BP’s assets in Azerbaijan.

Anticipated Closing and Benefits

The transaction is expected to close in the second quarter of 2025, pending regulatory and TANAP shareholders’ approvals. The proceeds from the sale will contribute to BP’s $20 billion divestment program and other initiatives.

Leslie Mapondera, Apollo Partner, emphasized the value of the partnership with BP on this critical European infrastructure asset, highlighting the relevance of Apollo’s capital for high-quality scaled infrastructure opportunities in Europe.

Role of TANAP Pipeline in Energy Transport

Running approximately 1,800 kilometers across Türkiye, TANAP plays a central role in the SGC pipeline system. It transports gas from the Shah Deniz gas field in the Caspian Sea to markets in Europe, including Italy and Greece.

After resolving a technical issue at the Shah Deniz Alfa platform, BP resumed operations, ensuring the smooth flow of gas condensate between the platform and the Sangachal terminal.

Future of the Shah Deniz Project

The Shah Deniz project, developed in two phases, has been a significant endeavor for BP. With Phase 2 (SD2) being one of the largest and most complex gas projects, BP has made strides in production from its latest platform in the Caspian Sea.

Overall, the partnership between BP and Apollo signifies a strategic move in the energy sector, emphasizing the importance of cooperation in advancing critical infrastructure for gas transport across Europe.