The Trans Adriatic Pipeline’s shareholders (SOCAR, Statoil, BP, Fluxys, Total, E.ON and Axpo) confirmed today that they have passed the Resolution to Construct on the development and construction of the Trans Adriatic Pipeline project. This follows the announcement earlier today by the Shah Deniz Consortium that it has taken the Final Investment Decision on the Shah Deniz Stage II project.
2013 has been a momentous year for TAP, which was selected in June by the Shah Deniz Consortium as the preferred pipeline project to transport Shah Deniz Stage II gas to Europe.
Kjetil Tungland, Managing Director at TAP, said: “Today’s announcement by our shareholders is a very important milestone for TAP and further demonstration of their strong confidence in the commercial and technical viability of the project. Our focus now is to make sure that we construct the pipeline on time and on budget.”
Commenting on the Shah Deniz Consortium’s Final Investment Decision, Mr. Tungland continued: “This decision is another historic step in the realisation of the Southern Gas Corridor. By opening up this new gas transportation route, TAP and Shah Deniz will ensure the diversity and security of gas supplies to Europe and enhance the strategic importance of the countries along its route.”
About the Trans Adriatic Pipeline (TAP)
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.
TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on grants or subsidies. With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately a year later.
TAP’s shareholding is comprised of BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).