Shah Deniz consortium partners, TAP reach agreement on project funding
Azerbaijan, Baku, Aug. 9 / Trend A.Badalova /
The partners of Azerbaijani Shah Deniz gas field development and Trans Adriatic Pipeline (TAP) reached an agreement to secure funding for the project, TAP reported on Thursday.
According to the agreement tese funds will contribute towards continued work in several important areas during the period running up to the final routing decision, expected in 2013.
The agreement also includes an option for the Shah Deniz shareholders to take up to 50 percent equity in TAP.
According to TAP's Managing Director Kjetil Tungland, the signing of this agreement is a significant vote of confidence in the quality of TAP's technical and commercial solutions from key industry players, and underpins the Cooperation Agreement that was signed between TAP and Shah Deniz in June.
"Our cooperation with Shah Deniz is now even closer and more far-reaching than before. This agreement will strengthen our continued working relationship in the run-up to the final routing decision. We remain confident of a positive outcome," he said.
TAP, which is one of the projects within the Southern Gas Corridor, is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. Gas, which will be produced during the second stage of Azerbaijani Shah Deniz gas condensate field development, is the main supply source for the project.
Earlier this year Shah Deniz consortium made TAP a priority route for export of Azerbaijani gas to Italy.
TAP's initial pipeline capacity will be 10 billion cubic metres per year, expandable to 20 billion cubic metres per year. TAP's shareholders are EGL of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).