Nabucco, TANAP sign Memorandum of Understanding and Co-operation

Photo: Nabucco, TANAP sign Memorandum of Understanding and Co-operation  / Oil&Gas

Azerbaijan, Baku, March 4 / Trend A.Badalova /

Nabucco Gas Pipeline International GmbH (NIC) signed a Memorandum of Understanding and Co-operation (MoU) with the Trans Anatolian Pipeline (TANAP), NIC reported on Monday.

According to the statement, in the memorandum the two parties formally agree to co-operate on the development of the Southern Gas Corridor.

The MoU states that Nabucco and TANAP will exchange technical and other strategic information and "cooperate in a manner that will support the development of their respective projects."

The MoU also highlights the need for further diversification of natural gas transportation routes to improve reliability and diversification of gas supplies to the EU and the South Eastern Europe regions.

According to the Managing Director of Nabucco Gas Pipeline International GmbH Reinhard Mitschek, the signed MoU cements the relationship between two integral parts of the Southern Gas Corridor.

"It creates a mutual framework for the sharing of information and activities vital to the success of both projects," Mitschek said.

Nabucco West is a short-cut version of Nabucco project, which envisages construction of the pipeline from the Turkish-Bulgarian border via Bulgaria, Romania and Hungary to the Central European Gas Hub at Baumgarten (Austria). Gas to be produced within the second phase of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for the project.

The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ.

In June, 2012 the consortium of Azerbaijani Shah Deniz gas field development chose Nabucco West as the single pipeline option for the potential export of Shah Deniz Stage 2 gas to Central Europe. The final decision on the pipeline route to transport Azerbaijani gas to Europe will be made in June, 2013.

TANAP project envisages gas transportation from Shah Deniz field to Europe via Turkey. The initial capacity of the pipeline is expected to reach 16 billion cubic meters per year. Around 6 billion cubic meters will be delivered to Turkey, and the rest - to Europe.

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Tags: TANAP, Nabucco