TAP, South European Gas Pipeline not to be rivals – Greek minister (UPDATE)
Details added, headline changed (first version posted on 12:10)
Baku, Azerbaijan, June 25
By Azad Hasanli - Trend:
The Trans-Atlantic Pipeline (TAP) and the South European Gas Pipeline won't compete with each other, Bloomberg reported June 25 citing Greek Energy Minister Panagiotis Lafazanis.
"Both pipelines will bring energy stability to Europe, both will have customers and both will be profitable for their owners," he said.
The South European Gas Pipeline will have annual capacity of 47 billion cubic meters of gas said the minister, adding that its construction will start in 2016, with completion scheduled for 2019.
The pipeline's section in Greece will employ around 20,000 people during its construction phase, according to Lafazanis.
The South European Gas Pipeline is the extension of the Turkish Stream gas pipeline. Greek-Russian joint venture on a parity basis will be created for the implementation of this project.
Turkish Stream envisages transportation of gas from Russia to Turkey through the Black Sea.
The pipeline's pumping capacity will be 63 billion cubic meters. The 1,100 kilometer-gas pipeline will consist of four branches and supply up to 49 billion cubic meters of gas to the Turkish-Greek border. A gas hub is expected to be created on the border between Turkey and Greece. The EU countries must independently create their own gas transportation facilities to receive this gas in their territories.
TAP project is a part of the Southern Gas Corridor that will allow Europe to diversify its hydrocarbon supply sources and strengthen energy security and also will allow Azerbaijan to obtain a new market in Europe.
As part of ensuring Azerbaijani gas supply to Europe, the final investment decision was made on Dec.17, 2013 on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will first go to the European market (10 billion cubic meters), while six billion cubic meters of gas will be annually delivered to Turkey.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
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