Baku, Azerbaijan, Dec. 10
By Aygun Badalova - Trend:
A Resolution to Construct (RtC) decision on the Trans Adriatic Pipeline (TAP) is expected to be announced soon.
"TAP plans to announce its Resolution to Construct decision, when the Shah Deniz Consortium takes their Final Investment Decision (FID) at the end of this month," a source in TAP told Trend on Dec.10.
The consortium of Azerbaijani Shah Deniz field development plans to make FID on the second phase of field's development on Dec. 17. In the framework of FID 39 documents are expected to be signed. According to SOCAR (the State Oil Company of Azerbaijan) President Rovnag Abdullayev, specialists from partner companies on the field's development are completing the process of preparing the necessary documents.
Italian media reported that Italy's Prime Minister Enrico Letta, as well as officials from other country-participants of TAP - Greece and Albania - will visit Baku next week and attend the event.
The contract on development of the Shah Deniz gas and condensate field was signed on June 4, 1996. Stakeholders are: BP (operator) and Statoil with 25.5 per cent each, NICO with 10 per cent, Total with 10 per cent, Lukoil with 10 per cent, TPAO with nine per cent and SOCAR with 10 per cent.
The second development phase plans to produce some 16 billion cubic meters of gas (9 billion - during the first phase), six billion cubic meters of which will be transported to Turkey and six billion cubic meters will be delivered to Europe.
In late June the Shah deniz Consortium selected TAP as the route to transport its gas to European markets.
TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and then to Western Europe.
The initial capacity of the TAP pipeline will be 10 billion cubic meters per year with the possibility of expanding to 20 billion cubic meters per year. TAP shareholders are BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent) and Axpo (5 percent).
The construction of TAP is planned to start in 2015.