TAP, Plinacro sign memorandum on cooperation
Azerbaijan, Baku, Feb. 25 / Trend A. Badalova /
The Trans Adriatic Pipeline AG and Plinacro Ltd., a natural gas transmission system operator in Croatia, today announced the signing of a Memorandum of Understanding and Cooperation (MOUC) aimed at encouraging the development of natural gas markets in South East Europe (SEE), TAP said.
The three-year agreement will enable both organisations to coordinate their activities and exchange technical information.
"TAP and Plinacro already individually support the security of supply and diversification of gas resources in the region," the statement said.
TAP is planning to construct a natural gas pipeline that will connect Greece with Italy, via Albania and the Adriatic Sea. The pipeline is part of the European Union-designated Southern Gas Corridor which will link Caspian gas sources to Europe and provide significant reverse flow capacities. At 520km, TAP is the shortest and most cost efficient of the proposed pipelines in the corridor.
The shareholders of the project are Swiss EGL company (42,5 percent), Norwegian Statoil (42,5 percent) and German E.ON Ruhrgas (15 percent).
Plinacro operates the Croatian national natural gas pipeline system. It plans to enter new South European markets and is promoting the Ionian Adriatic Pipeline (IAP), which aims to bring major energy security and economic benefits to the region.
Under the terms of the MOUC, a joint working group will be established immediately to further evaluate areas of potential cooperation.
Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project, said that TAP and IAP will both make significant contributions to the future energy supply to Europe and the SEE region. At such a critically important time in the development of each project, it makes sense for us to explore how best to work together. We are delighted to have signed this agreement and look forward to making real progress towards the realisation of our shared goals.
Jerko Jelić-Balta, President of the Board of Plinacro, said that improving the reliability and diversification of gas supplies to South East Europe is a major strategic imperative for the region. To realise such an ambition requires mutual understanding, cooperation and support. This MOUC is an important milestone in that process, providing a framework and forum for coordinating our activities and exchanges of information with TAP, to the benefit of both parties.