POWERGLOBE signs an agreement for 1.3 billion cm of NG capacity with ”TAP” & Azerbaijani ”Socar”

POWERGLOBE QATAR signs an agreement for 1.3 billion (cm) capacity of Natural Gas with TAP – Trans Adriatic Pipeline. TAP is a pipeline project to transport natural gas from Azerbaijan, starting from Turkey, Greece via Albania and the Adriatic Sea to Italy and further to Western Europe. With this agreement POWERGLOBE will transit  Azerbaijani natural gas to South Eastern and Central Europe.

Notice, that Trans Adriatic Pipeline AG is a joint venture company registered in Baar, canton Zug, Switzerland, with a purpose of planning, developing and building the TAP pipeline. Shareholders of the Trans Adriatic Pipeline are BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagas (16%) and Axpo (5%).

The pipeline would be supplied by natural gas from the second stage of the Shah Deniz (Azerbaijan) gas field development in the Azerbaijani section of Caspian Sea through the South Caucasus Pipeline and the planned Trans Anatolian Pipeline (TANAP). Since it will enhance energy security and diversify gas supplies for several European markets, the TAP project is supported by the European institutions and seen as a “Project of Common Interest” and a part of the Southern Gas Corridor.

(QGN photo) Dr. Theodore Theodoropoulos (CEO of POWERGLOBE) and Mr. Nick Marantos (COO of TAP), and Mr. Yalchin Aliyev (CFO of TAP)

Trans Adriatic Pipeline project was announced in 2003 by Swiss energy company EGL Group (now named Axpo). The feasibility study was concluded in March 2006. Two options were investigated: a northern route through Bulgaria, the Republic of Macedonia and Albania, and a southern route through Greece and Albania, which finally was considered to be more feasible. In March 2007, the extended basic engineering for the pipeline was completed. Greece opposed for the route of the Trans Adriatic Pipeline passing through Albanian territory, as it would allow Albania to become transmission hub for gas in the Western Balkans.

On 13 February 2008, EGL Group and the Norwegian energy company company Statoil signed an agreement to set up Trans Adriatic Pipeline AG, a joint venture to develop, build and operate the pipeline. In June 2008, the project company filed an application with the Greek authorities to build a 200 kilometres (120 mi) section of the pipeline from Thessaloniki to the Greek-Albanian border. In January 2009, the TAP project carried out a marine survey in the Adriatic Sea to verify the offshore route for the future gas pipeline. A route assessment survey in Albania started in July 2009. In March 2009, an intergovernmental agreement between Italy and Albania on energy cooperation mentioned TAP as a project of common interest for both countries. In January 2010, TAP opened country offices in Greece, Albania and Italy. In March 2010, TAP submitted an application to Italian authorities for inclusion into the Italian gas network.

On 20 May 2010, it was announced that E.ON becomes a partner in the project. The deal was successfully closed on 7 July 2010.

TAP Agreement: President of the Republic of Azerbaijan, HE Ilham Aliyev with EU President, E. Barozo

In November 2010, TAP started a route refinement survey in northern Greece in preparation for the environmental impact assessment. On 7 September 2011, the Trans Adriatic Pipeline AG (TAP AG) submitted its EU Third Party Access Exemption applications in all three host countries. Exemption will allow TAP AG to enter into long term ship-or-pay gas transportation agreements with the shippers of Shah Deniz II gas. The exemptions were granted on 16 May 2013.

In February 2012, the Trans Adriatic Pipeline was the first project to be pre-selected and to enter exclusive negotiations with the Shah Deniz Consortium. In August 2012, consortium partners BP, SOCAR and Total S.A.signed a funding agreement with TAP’s shareholders, including an option to take up to 50% equity in the project.

Corrado Passera (Italy), Dimitris Avramopoulos (Greece) and Edmond Haxhinasto (Albania) are signing intergovernmental agreement. On 28 September 2012, Albania, Greece and Italy confirmed their political support for the pipeline by signing a memorandum of understanding.

On 22 November 2012, the TAP consortium and Trans-Anatolian gas pipeline’s partners signed a memorandum of understanding that establishes a cooperation framework between the two parties.

In February 2013, Greece, Italy and Albania signed an intergovernmental agreement. In June 2013, the project was chosen as a route for gas from Shah Deniz II over the competing Nabucco West project. Later in 2013, BP, SOCAR, Total, and Fluxys became shareholders of the project.

In December 2015, Snam joined TAP, acquiring Statoil’s 20% interest in the project oil signed an agreement to set up Trans Adriatic Pipeline AG, a joint venture to develop, build and operate the pipeline. In June 2008, the project company filed an application with the Greek authorities to build a 200 kilometres (120 mi) section of the pipeline from Thessaloniki to the Greek-Albanian border. In January 2009, the TAP project carried out a marine survey in the Adriatic Sea to verify the offshore route for the future gas pipeline. A route assessment survey in Albania started in July 2009.] In March 2009, an intergovernmental agreement between Italy and Albania on energy cooperation mentioned TAP as a project of common interest for both countries. In January 2010, TAP opened country offices in Greece, Albania and Italy. In March 2010, TAP submitted an application to Italian authorities for inclusion into the Italian gas network.

Sources: QGN, QTF, QNE, AzeriEnergyNews, TAP Report’18, TTF, BBC, Reuters, Global Energy News, LNG Global, ICIS Report.

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