Period of TAP construction depends on decision of Shah Deniz consortium
Azerbaijan, Baku, June 15 /Trend, A.Badalova/
"Trans Adriatic Pipeline (TAP) will make its final investment decision in parallel with Shah Deniz decision in 2013," TAP Managing Director Kjetil Tungland said in an interview with Trend.
"The construction of the TAP pipeline will take approximately 3 years. TAP is aligning its plans to the Shah Deniz development schedule, so TAP currently plans to start construction in 2013 and will be able to be ready to receive first gas from Shah Deniz in 2017".
The consortium developing Shah Deniz field in Azerbaijan's sector of the Caspian expects concrete proposals from all pipeline groups for October 1 this year for the transportation of gas within the full-scale development of the field.
Tungland said TAP has been working closely with the Shah Deniz Consortium to explain its technical design, plans and schedule.
"The first of October is the deadline for the submission of all the selection criteria that the Shah Deniz Consortium is requiring. This not only includes the tariffs, but also information such as commercial, financial and technical viability of all the pipelines. TAP's intention is to stick to this deadline. In the meantime, we will continue a close dialogue with Shah Deniz to make sure that we've made offers that comply with all the selection criteria they expect," Tungland said.
He said the most important thing that will happen this year is that TAP will submit all the information for the selection criteria to the Shah Deniz consortium.
"We are currently in the process of conducting the Environmental Social Impact Assessment studies and will submit the final reports before the end of the year," said Tungland.
Speaking about of tariffs for the transportation via the TAP, he said since TAP has the lowest cost, it will be able to present the best tariffs.
Currently TAP is estimated at EUR 1.5 billion.
The 520km long Trans Adriatic Pipeline will transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into western Europe.
The project is designed to expand transportation capacity from 10 to 20 bcm per year depending on throughput. The TAP project also envisages physical reverse flow of up to 8 bcm and the option to develop natural gas storage facilities in Albania to further ensure security of supply during any operational interruption of gas deliveries.
TAP's shareholders are EGL of Switzerland (42.5%), Norway's Statoil (42.5%) and E.ON Ruhrgas of Germany (15%)