TAP highlights most effective netback to export Azerbaijani gas
Azerbaijan, Baku, March 28 / Trend, A.Badalova/
Trans Adriatic Pipeline will provide the best netback value to export Azerbaijani gas from the second stage of Shah Deniz gas field development to Europe, Davide Rubini, TAP's Commercial Advisor, said in an interview with Trend.
"TAP is the shortest and most cost-effective option and therefore, the most competitive transportation solution for shippers, also enabling the best netback value to the Shah Deniz consortium," Rubini said.
Rubini in his interview did not give specific figures on estimated cost of gas with the deduction of transportation costs.
Rubini said TAP, which is one of the projects within the Southern gas Corridor, has a significant role to play in South East Europe.
"Currently, it is in dialogue with a number of stakeholders in the region to explore the possibility to sustain the development of the gas market here, Rubini said. TAP has recently signed a Memorandum of Cooperation and Understanding with Plinacro, the Croatian natural gas transmission system operator, to enhance cooperation in ensuring security of supplies to this region".
The Trans Adriatic Pipeline AG and Plinacro Ltd signed a Memorandum of Understanding and Cooperation (MOUC) aimed at encouraging the development of natural gas markets in South East Europe (SEE) in February. The three-year agreement will enable both organisations to coordinate their activities and exchange technical information. Under the terms of the MOUC, a joint working group will be established immediately to further evaluate areas of potential cooperation.
Rubini said TAP is a transportation solution with many technical and commercial advantages.
One of the unique features of TAP is the physical reverse flow capability of up to 8 bcm, Rubini said.
The Trans Adriatic Pipeline AG is a proposed pipeline project. The 520km-long pipeline will start in Greece near Thessaloniki, cross Albania and the Adriatic Sea and come ashore in Italy near Brindisi, allowing gas to flow directly from the Caspian basin into European markets.
The offshore part of the pipeline starts near the Albanian city of Fier and crosses the Adriatic Sea to tie into Italy's gas transportation grid operated by SNAM ReteGas. In its upstream part, TAP will interconnect with the existing DESFA pipeline system in Greece, which is linked further to the east with systems in Turkey, to secure access to gas supplies in the Caspian Sea region.
The estimated cost of the project is 1.5 billion euro. The shareholders of the project are Norwegian Statoil, Swiss EGL and German E.ON Ruhrgas.