TAP and Interconnector Greece-Bulgaria sign Memorandum of Understanding on technical cooperation

Photo: TAP and Interconnector Greece-Bulgaria sign Memorandum of Understanding on technical cooperation / Oil&Gas

Baku, Azerbaijan, Jan.6 / Trend /

The Trans Adriatic Pipeline AG (TAP) and Interconnector Greece-Bulgaria (ICGB) - the company in charge of the development, financing and construction the Interconnector Greece-Bulgaria (IGB) - have signed a Memorandum of Understanding and Cooperation (MOUC) aimed at establishing the technical cooperation in order to further develop strategic infrastructure in the region.

The MOUC will allow for cooperation between the two companies who will work together on realising a possible interconnection point in the vicinity of Komotini, Greece. This will enable new gas supplies to flow into the Bulgarian gas network and further into the South Eastern Europe region.

Lutz Landwehr, Commercial Director of TAP, said: "We welcome this agreement with ICGB and see it as an opportunity to transport Caspian gas to Bulgaria, thus enhancing diversification of supply and improving security of supply in the country and in the wider South Eastern Europe Region".

Following the signature of the MOUC, TAP and ICGB will start a cooperation focused on understanding the technical requirements of each project, exchanging views on best practices and on any other relevant issues that affect the development of either project.

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%).

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Tags: TAP