The European Investment Bank approved a $270 million (TL 1.87 billion) loan for Turkey's state-owned crude oil and natural gas pipelines and trading company, BOTAS, for the Trans Anatolian Natural Gas Pipeline (TANAP) project, according to ministry sources Tuesday.

BOTAS will repay the loan over 18 years, of which the first five will be nonrefundable.

In an interview with Anadolu Agency (AA), Turkey's Energy and Natural Resources Minister Fatih Dönmez lauded the pipeline project for contributing to Turkey’s regional and global energy supply security by offering consistent natural gas transit.

"TANAP plays an important role in diversifying Europe's energy supply security. Turkey is advancing steadily to become an energy center and is accordingly planning strategies to achieve this," Dönmez said.

He noted that a total of 6.2 billion cubic meters (bcm) of gas was transferred via TANAP since the first gas flow on June 30, 2018.

In June 2018, gas flow from TANAP corresponded to 4.7 million cubic meters per day, and this gradually increased to 11.3 million cubic meters on July 1, 2019. As of July 1, 2020, the flow reached 17 million cubic meters per day, Dönmez explained.

TANAP, with investments of over $7 billion, is the largest section of the $40 billion Southern Gas Corridor project.

The Southern Gas Corridor project includes the Shah Deniz 2 field, the South Caucasus Pipeline and TANAP. Azerbaijan, Georgia, Turkey, Bulgaria, Greece, Albania and Italy are among the countries that are involved in the 3,500-kilometer (2,175-mile) project.

TANAP stretches from the Turkish-Georgian border to the Turkish-Greek border to supply natural gas to both Turkey and European countries.

A total of 16 bcm of gas will be delivered through the project, out of which TANAP will deliver 6 bcm to Turkey while transferring 10 bcm via the Trans Adriatic Pipeline (TAP) on the Turkey-Greece border. The pipeline delivery capacity is projected to expand to 24-31 bcm over time.