European gas infrastructure group Fluxys is considering taking a shareholding in
the Trans Adriatic Pipeline (TAP) project. Discussions between Fluxys’ and TAP’s
shareholders began in 2012. These negotiations are proceeding with a view to
include Fluxys as a shareholder in TAP shortly after the Shah Deniz Consortium
has decided on the preferred European route to bring gas from
Azerbaijan.
Fluxys is a
major gas transit operator in Europe with activities in six countries and counts
among the few operators combining gas transmission, gas storage and terminalling
of liquefied natural gas (LNG). Fluxys and TAP are confident they will be able
to finalise the necessary arrangements for Fluxys to join TAP by August 2013
subject to TAP being selected by Shah Deniz as preferred European pipeline
route. This once again signals confidence in TAP by a major player in the
European energy industry.
Commenting Kjetil
Tungland, TAP’s Managing Director, said: “I am delighted
that Fluxys is looking to join the TAP project. Their involvement in TAP fully
underlines that TAP is a European Project and truly demonstrates that TAP can
transport Shah Deniz gas to Western markets beyond Italy. This in turn, further
contributes to Europe’s security of supply.”
Walter
Peeraer, Managing Director Fluxys, said: “Becoming a
partner in TAP would be a further step in our strategy of bridging the markets
to foster security of supply and market liquidity in Europe. Through our
partnership with Snam and our project to enable south-to-north flows from Italy
to Switzerland and Germany, Azeri gas from the TAP pipeline could be moved
straight into the North Western European markets.”
About the Trans Adriatic Pipeline
(TAP)
TAP 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. Designed to expand the
capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas
Corridor, enhancing Europe's energy security by providing a new source of
gas.
The pipeline will accommodate the supply of natural gas from
Azerbaijan to a wide array of markets in Europe:
- TAP’s routing can
facilitate gas supply to several South Eastern European countries, including
Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, and others.
- TAP’s landfall in Italy, the third largest gas market in Europe,
provides 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’s
shareholders are Axpo of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON
of Germany (15%). Shah Deniz Consortium members BP, SOCAR and Total each have
options to purchase shares in TAP which if exercised in full would give them a
total ownership of 50% of TAP. It is expected that the options will be exercised
immediately following selection of TAP in June 2013 as the gas transportation
route to Europe. Currently, BP, SOCAR and Total are participating in the
funding of the development of the TAP project.