ITGI – only Southern Corridor project capable of securing final investment decision by 2013
Azerbaijan, Baku, Jan.26 / Trend A.Badalova /
ITGI (Turkey-Greece-Italy gas pipeline) is the only Southern Gas Corridor project capable of securing a final investment decision by 2013, CEO of IGI Poseidon and head of international gas infrastructures in Italian energy company Edison Elio Ruggeri said at the European Gas Conference 2012 in Vienna.
According to the ITGI project's statement, Ruggeri noted that in order to secure the production from the second phase of Azerbaijani Shah Deniz gas field development to start in 2017, it is essential that the selected project can take a final investment decision by 2013.
"As acknowledged by many energy experts ITGI, having completed the most relevant permitting and regulatory procedures, is the only Southern Corridor project capable of securing a final investment decision in accordance with the Shah Deniz II schedule," Ruggeri said.
He said that ITGI project's maturity is an asset for both Europe, as it secures quick availability of Azeri gas, and for the Shah Deniz consortium, as it reduces the possible risk of delays in the start-up of production.
ITGI is one of the proposed projects within the Southern gas Corridor, which involves gas supplies from the Caspian region and the Middle East to the EU countries. The project includes a modernised Turkish pipeline infrastructure, as well as an Interconnector Turkey-Greece (ITG projects) and an Italy-Greece interconnector (IGI). The project shareholders are the Greek company DEPA and Italy's Edison. The total estimated project cost is 1.5 to 2 billion euros.
The initial planned capacity of the ITGI pipeline will hit 10 billion cubic metres per year. One billion cubic metres will be transported to Bulgaria, one billion cubic metres to Greece, while the remaining eight billion cubic metres will go to Italy.
The Edison and Depa companies established IGI Poseidon SA to develop and construct the Greece-Italy pipeline known as Poseidon.
Gas, which will be produced within the second phase of Shah-Deniz field development is regarded as the main source for the project.
ITGI along the other pipeline projects within the Southern Gas Corridor have submitted final proposals to the Azerbaijani side, which will make its decision on preferable transportation route in the first quarter of 2012.