Managing Director: TAP to provide Shah Deniz consortium with better netback price

Azerbaijan, Baku, June 8 / Trend A.Badalova /

The short route of the Trans Adriatic Pipeline (TAP) will allow the consortium of the Azerbaijani Shah Deniz gas field development to get a higher netback, TAP Managing Director Kjetil Tungland told in an interview to Trend in Baku.

"Considering the fact that TAP is the shortest gas pipeline, and therefore less expensive in terms of transit tariffs, TAP will enable buyers to offer a better price and as a result, the Shah Deniz consortium will receive a better netback," Tungland said.

Currently, the Shah Deniz consortium considers two options for its gas transportation to Europe - TAP and Nabucco West. The final decision on the pipeline route will be made in at the end of June, 2013.

The TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to the south of Italy and further into Western Europe.

The TAP route will be approximately 870 kilometres in length (Greece 550 km; Albania 210 km; offshore Adriatic Sea 15km; Italy 5 km).

With regard to the gas prices in targeted countries, which are one of the main selection criteria set by the Shah Deniz consortium, Tungland said that TAP can supply the countries in the Western Balkans, where the gas prices in the markets are relatively high. Tungland stressed that TAP will reach Italy, which is the second largest gas market in continental Europe and is easily connected to the other Western European markets such as Switzerland, Germany, France and the UK.

"The question then is whether there is a sufficient amount of buyers offering a sufficiently high price for gas," Tungland added.

According to Tungland, with TAP the Shah Deniz consortium can reach markets, which are either not supplied with gas at all or dominated by Russian supplies.

Talking about the further steps in case of being selected by the Shah Deniz consortium as the final European transportation route, Tungland said that the investment decision on TAP is scheduled to be made in late September this year by TAP's shareholders. The final investment decision on Shah Deniz 2 project is expected in October, 2013.

"Following the Final Investment decisions being taken, the tendering process for steel suppliers and construction bidding can start. The beginning of construction is expected late next year," Tungland said.

TAP's initial pipeline capacity will be 10 billion cubic metres per year, but is easily expandable to 20 billion cubic metres per year. TAP's shareholders are AXPO of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).

Commission for Crimes in Karabakh to politically, legally assess Armenian aggression
Commission for Crimes in Karabakh to politically, legally assess Armenian aggression
Liberated lands of Azerbaijan already have good mobile signal - Russian 'Izvestia'
Liberated lands of Azerbaijan already have good mobile signal - Russian 'Izvestia'
Important to know where mines are on Azerbaijan's liberated lands - Lithuanian FM
Important to know where mines are on Azerbaijan's liberated lands - Lithuanian FM
Loading Bars
Latest
Several investment projects to be implemented in Kazakhstan's Zhambyl in 2021
Iran continues to strengthen ties with China, Russia
Winners of ‘Sustainable Development in Chemistry and Chemical Engineering’ conference awarded (PHOTO)
Very exciting to perform in Rhythmic Gymnastics FIG World Cup in Baku - Polish gymnast
Global Affairs Canada welcomes release of Armenian detainees by Azerbaijan
Azerbaijan's SME Dev't Agency holds training for female entrepreneurs (VIDEO)
Azerbaijani PulPal payment system receives purchase offer
Georgia begins renovating buildings and infrastructure in Gardabani
Azerbaijan eyes to launch WeChat payment solution
Azerbaijan's Central Bank unveils results of tender launched to support database platform
SOCAR’s Petkim reveals profit in Q1 2021
S.Korea to set up training center for advanced technologies of fruit, vegetable production in Uzbekistan
Oil prices set for weekly gain despite India virus surge
Azerbaijan boosts steel imports from Turkey
No 'Indian' strain of COVID-19 detected in Azerbaijan
Kazakhstan-China Pipeline LLP opens tender on repairs of pipelines
Uzbekistan, Ireland consider establishing co-op in tourism sector
Egyptian gymnast talks AGF's organization of World Cup in Baku
Nuvei acquires Israeli fintech co Simplex for $250m
SOCAR’s Petkim increases production capacity to 92%
Kazakhstan decreases imports of Belgium-made goods
Thailand expects up to 20 mln doses of Pfizer vaccine from July
Kazakhstan's inflation rate for April 2021 revealed
Shusha declared cultural capital of Azerbaijan - presidential order
Number of ships received at Turkish Gemlik port in 1Q2021 revealed
Putin instructs government to support international Arctic expedition
Kazakhstan’s Nostrum identifies measures to add to PDP reserves
Azerbaijan’s renewable energy path: ongoing and future projects
Georgia reports 1,547 new cases of coronavirus for May 7
Uzbekistan eyes attracting Singaporean companies for co-op in electrical industry
Turkey ratifies agreement on international combined transport of goods with Georgia
Kazakhstan boosts trade with Spain
Latest prices for Azerbaijani oil announced
Wide opportunities opening for TRACECA to implement major projects (PHOTO)
Azerbaijan establishes uninterrupted water supply to liberated Hadrut village
Construction of new main water pipeline to Shusha begins in Azerbaijan
Gold, silver prices increase in Azerbaijan
Size of hydrogen aircraft market by 2040 disclosed
Czech companies interested in implementing green energy projects in Uzbekistan
Azerbaijani Ro-Pax type ferry on its first voyage, en route to Kuryk port (PHOTO)
Kazakhstan’s freight transportation operator opens tender to test wheelsets
Countries Need To Assist India In Its Battle Against Second Wave Of Covid: Deloitte CEO
Cement adhesive and dry mortar mixes plant in Georgia expands with state support
WTO Patent Waiver Will Enable Timely Access Of Covid Vaccines: India
Russia promises to show its best at Expo 2020 in Dubai
Friendship between India and UAE increasing as their allies continues in pandemic
UK PM Johnson's party win election for parliament seat
First day of Rhythmic Gymnastics World Cup kicks off in Baku (PHOTO)
India taking steps for economy growth
Multilateral Response Is Critical To Overcome Pandemic In India, Globally: IMF
Indian defence organisations engaged in mitigating people’s sufferings amid Covid surge
India, EU likely to resume FTA talks stalled for 8 years
Bank of Israel bought $5.27b foreign currency in April
EURO 2020 Trophy presented to Azerbaijani President Ilham Aliyev (PHOTO)
Uzbekistan reveals COVID-19 data for May 7
Azerbaijan, TRACECA discuss regional opportunities of post-Karabakh conflict period
Azerbaijani currency rates for May 7
Organization of Azerbaijani Veterans appeals to Russian FM
IFC interested in supporting Azerbaijan’s energy transition
IFC supported Azerbaijan’s private sector with around $850 million, says director
IFC to engage in formulating new WB Partnership Framework for Azerbaijan - Director
Tesla tells regulator that full self-driving cars may not be achieved by year-end
India's daily COVID-19 cases rise by record 414,188
Azerbaijani president pays constant attention to work in liberated lands - administration (PHOTO)
Germany's exports up 2.6 pct in april
Brazil's COVID-19 cases surpass 15 million
Turkmenistan offers business opportunities for Swiss private sector in number of areas
Progress has been made in lifting JCPOA related sanctions - Head of Iranian President's office
Turkey, Brazil and US remain main exporters of poultry meat to Georgia
Turkey's central bank leaves key policy rate unchanged at 19%
Tajikistan official confirms the death of 19 citizens in the recent border clashes
GM posts strong performance in Q1
Bundestag approves easing of COVID-19 rules for immunized people
Diamond demand in China directly benefits Botswana: De Beers
U.S. weekly jobless claims drop to 498,000, marking new low during pandemic
WHO says COVID-19 vaccine supply hitches could reignite upticks in Africa
Food prices continue to climb in April - FAO
Turkey reports over 22 388 COVID-19 cases
At least 23 killed in Rio de Janeiro favela gun battle
Kyrgyzstan is interested in establishing joint Kyrgyz-Korean enterprises
Turkey's 1Q2021 revenues from car export to int'l market grow
We reject, don't recognize decision of Latvian gov't on so-called "Armenian genocide" - Turkish Defense Ministry
Georgia launches campaign to popularize state agricultural insurance program
New “Azerbaijan” Ro-Pax ship built in country’s shipyard to make its first voyage from Port of Baku (PHOTO/VİDEO)
Former Maldives president hurt in blast outside home
Turkey’s inactive COVID-19 vaccine makes it to WHO list
Saudi Arabia showing interest in importing Azerbaijan's AzGranata products
Araghchi arrives in Vienna to attend 4th round of JCPOA talks
Kazakhstan - Greece trade down y-o-y
Georgian banks see profit in 1Q2021
Azerbaijan’s Azerishig company opens tender to buy various combined, storage accessories
Uzbek TPP to use German equipment for energy production
Azerbaijani national team holds podium training for upcoming Rhythmic Gymnastics World Cup in Baku (VIDEO)
International Bank of Azerbaijan opens tender to buy Cisco network switches
Kazakhstan, Russia lift mutual restrictions on import, transit of livestock products
World auto concerns’ production volume to decrease during 6M2021
OSCE Chairperson-in-Office welcomes release of Armenian detainees by Azerbaijan
Greece decreases petroleum oil exports from Kazakhstan
Sputnik Light vaccine can be used for people aged 18-60
Moderna booster increases antibodies against COVID-19 variants, early data shows
All news