Azerbaijan, Baku, July 30 / Trend /
BP, SOCAR and Total - members of the international consortium developing the giant Shah Deniz field in Azerbaijan - have exercised their option to join the Trans Adriatic Pipeline AG, TAP reported on Tuesday.
BP and SOCAR have each taken a 20 percent share while Total has acquired 10 percent. In addition, Fluxys, a major gas transit operator in Europe, has opted to join TAP, taking a 16 percent stake in the project.
TAP's shareholding is now comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent) and Axpo (5 percent).
SOCAR has confirmed information on joining the project. According to the company's statement, a share purchase agreement was signed in Zurich.
"TAP will open up Southern Gas Corridor connecting Azerbaijan and other gas producers in the Caspian Sea with Europe and enhancing Europe's energy security by providing a new source of gas."
Managing Director for TAP Kjetil Tungland welcomed the shareholders of Shah Deniz and Fluxys in the TAP project, noting that the new shareholders will significantly enhance TAP's strategic position in becoming an integral link between both their upstream and downstream businesses.
"This will further strengthen the integration of the entire Southern Gas Corridor value chain and support TAP's delivery of the project on time and on budget," he said.
According to him, TAP's shareholders remain open to further strategic partners joining the project in the future.
Southern Gas Corridor is a large project, which is designed to meet the European gas needs for ten years ahead.
TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and then to Western Europe.
The gas which will be produced in the second phase of development of Azerbaijani Shah Deniz gas condensate field, is considered the main source of the project.
The initial capacity of the TAP pipeline will be 10 billion cubic meters per year with the possibility of expanding to 20 billion cubic meters per year.