Baku, Azerbaijan, Dec. 5
On Dec. 5 the Italian Parliament approved the ratification law on the tri-lateral Intergovernmental Agreement (IGA), following the signing of an IGA between Italy, Greece and Albania on the Trans Adriatic Pipeline (TAP) project on February 13, 2013, according to TAP's message.
"The IGA solidifies a range of key commitments by Italy, Greece and Albania to the forward development, construction and operation of the TAP pipeline," TAP said.
Within the framework of the Community Treaties and the Energy Community Treaty, the IGA will ensure that the states cooperate on the timely delivery and efficient operation of the TAP pipeline, according to TAP's message.
"I would like to thank the Italian Parliament and Government for their support and dedication resulting in this important approval of the ratification law today. This is a key milestone that has been achieved ahead of the Shah Deniz Final Investment Decision later this year. The IGA provides long term security for the project to move forward towards construction and in making the TAP project a reality," TAP's Managing Director, Kjetil Tungland noted.
TAP's External Affairs Director, Michael Hoffmann stated that the approval of the ratification law on the IGA further reinforces the host governments' support for TAP from a legal and regulatory perspective.
"For TAP, this puts in place the final high level international political agreement, and provid es Shah Deniz with further reassurance prior to its final investment decision, expected at the end of this year," Hoffmann said.
"I would like to thank all those involved for their support and commitment in securing this important agreement. We are pleased with our collaboration with the Italian Republic and we look forward to continuing our strong cooperation in the same spirit of open dialogue and joint efforts that this project can bring to Italy and its citizens." TAP Italy Country Manager, Giampaolo Russo noted.
TAP is the final part of a 3,500km set of pipeline projects being developed to transport Shah Deniz Phase II gas to Europe landing in Southern Italy. The Trans Adriatic Pipeline is being developed according to the highest international standards and will bring significant foreign direct investment and jobs associated with the construction of this major pipeline across the entire value chain.
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP's routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP's landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.
TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on public grants. It is planned that TAP will be ready to transport first gas from the Shah Deniz natural gas field in Azerbaijan to Europe in 2019.
TAP's shareholding is comprised of BP (20 per cent), SOCAR (20 per cent), Statoil (20 per cent), Fluxys (16 per cent), Total (10 per cent), E.ON (nine per cent) and Axpo (five per cent).