TAP likely to bring more Caspian gas to European markets, Managing Director says

TAP likely to bring more Caspian gas to European markets, Managing Director says

Baku, Azerbaijan, Jan. 19


The onshore construction activities of the Trans Adriatic Pipeline (TAP) will begin in all countries mid-2016, with the offshore scope starting in the winter of 2017/2018, Ian Bradshaw, Managing Director at TAP AG said in an interview to AzerNews.

"TAP's progress continues to be in line with the project schedule, which ensures we will be ready to transport Shah Deniz II gas to Europe early 2020," Bradshaw said.

TAP effectively started construction in Albania in June 2015 with the rehabilitation of access roads and bridges, and marked the occasion with a ceremony attended by Albanian Prime Minister Edi Rama and Energy and Industry Minister Damian Gjiknuri.

The 878 km TAP pipeline will transport Azerbaijani natural gas from the giant Shah Deniz II field through the last leg of the Southern Gas Corridor, connecting with the Trans Anatolian Pipeline at the Turkish-Greek border at Kipoi and then crossing Greece, Albania and the Adriatic Sea, before coming ashore in Southern Italy.

Early 2016, award of major procurement contracts are expected to be completed within the TAP. These contracts include offshore pipeline construction and line pipes, compressor stations.

Last year TAP concluded the contracts for access roads and bridges, turbo compressors and ball valves.

Bradshaw further noted that TAP is fully aligned to the Shah Deniz II development schedule.

"TAP will be ready when the first gas is available for delivery to Europe. Currently, the Shah Deniz Consortium plans first gas deliveries to Georgia and Turkey for late 2018, and first deliveries to Europe will follow approximately a year later, in 2020," he said.

Asked about the competitive advantages of SGC for other possible suppliers like Turkmenistan or Iran, he said TAP is designed to double its capacity to 20bcm/a by installing additional compressor units and stations - which will be an extremely cost efficient solution to bringing a further 10 bcm/a of gas to Europe.

Bradshaw assured that this flexibility will enable TAP to transport additional gas volumes in the future.

"Indeed, TAP is the European leg of the Southern Gas Corridor, which is one of the most complex energy projects worldwide. While TAP will initially transport 10bcm/a from the Shah Deniz II field in Azerbaijan, our pipeline can double its capacity once additional gas resources come on stream. TAP is likely to bring more Caspian gas to European markets in the future," he said.

"TAP's landfall in Italy provides multiple opportunities to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria. TAP's contribution to energy security and diversification will perhaps be most significant in South Eastern Europe. TAP remains committed to facilitating connections to several infrastructure projects such as the Interconnector Greece - Bulgaria (IGB) and the Ionian Adriatic Pipeline (IAP)."

Asked about the impact on TAP should the trend of low oil continue, Ian said a low oil price scenario leads all to look at cost across operations and with contractors and sub-contractors.

"TAP is no different; we will continue to ensure we execute the TAP project with exemplary cost control," he said.

"However, in more macro terms the energy industry is a long wavelength one used to oil price cycles and makes investment decisions for the long-term. Our project is underpinned by long-term gas transportation agreements for 25 years, which were agreed and signed by the buyers and shippers of Shah Deniz gas in September 2013."

Bradshaw also pointed to the fact that the project's Board took a Resolution to Construct - effectively the project's Final Investment Decision (FID) - in November 2013, saying this means that TAP's shareholders have formalized their commitment to invest in the construction of the pipeline, and the project is progressing according to schedule.

"Finally, TAP is a highly strategic gas project which contributes to Europe's energy security and diversification objectives. TAP will maintain a laser light focus on cost management, but safety will continue to remain our top priority throughout the life of the project," he said.

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 grants or subsidies. With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately in early 2020.

TAP's shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

Subscribe to Trend in Google News! Subscribe
Banks to start connecting Mir cards to Google Pay from October 26
Banks to start connecting Mir cards to Google Pay from October 26
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Student opens fire in school near Perm
Student opens fire in school near Perm
Loading Bars
EU gas production falls by 8%
Share of renewables in EU power generation mix decreased
North Carolina declares Oct. 18 as Day of Restoration of State Independence of Azerbaijan
MUSIAD aims to raise trade turnover between Azerbaijan and Turkey (VIDEO)
EU gas consumption reaches highest level in last seven years
EIB, EU Commission ink deal on financing for alternative fuels infrastructure projects
Armenia’s failure to provide minefield maps to Azerbaijan impedes restoration work in liberated territories - FM
Azerbaijan sees no effective steps from Armenia in opening transport links - minister
Azerbaijan recommends revanchist forces not to go down wrong path - PM
TAP updates on progress in market test
Azerbaijan stands for normalizing relations with Armenia in post-conflict period based on int'l law - FM
Turkey reveals cargo traffic with Netherlands for 8M2021
Master plans for Zangilan, Gubadli, Kalbajar and Lachin being prepared, will be done without taking any loans - Azerbaijani president
Khudaferin Bridge is proof of talent of Azerbaijani people - President Ilham Aliyev (VIDEO)
Physical gas flows, nominations at TAP’s interconnections
Great leader Heydar Aliyev returned to power at request of the people, then threat of losing independence again was prevented - president
Azerbaijan boosts gas exports
People of Azerbaijan tirelessly walked towards this victory - President Aliyev
Turkish FM tweets on marking Day of Restoration of Azerbaijan's Independence
Iranian currency rates for October 18
Kazakhstan sees rise in gold jewelry price
IRICA shares data on Iran’s export to neighboring countries
Azerbaijan gives update on mine clearance work on its liberated lands
Azerbaijan calls for urgent interim measures against Armenia
Bank of Georgia allocates funds to back project at local construction company
Each house in Fuzuli district's villages will have at least 12 acres of land - president
Azerbaijani First VP Mehriban Aliyeva shares post related to October 18 - Independence Restoration Day on Instagram (PHOTO)
Banks to start connecting Mir cards to Google Pay from October 26
Kazakhstan reveals main objectives of national agro-industrial complex project until 2025
Qatari companies might participate in restoration of Azerbaijan's liberated territories - FM
Gas price in Europe down to $980 per 1,000 cubic meters as trading opens
President Ilham Aliyev receives Turkish minister of labor and social security
President Ilham Aliyev receives delegation led by Deputy Prime Minister of State of Qatar
When I shared news of liberation of Fuzuli, whole world saw that we would complete our glorious mission - Azerbaijani president (FULL SPEECH)
Israel and UAE nearing free trade agreement
Coal’s share in Other non-OECD Asia’s generation mix to reach 50% in 2050
Iran increases raw steel exports
Azerbaijan prevents attempt to violate maritime state border (PHOTO)
Azerbaijani Cabinet of Ministers to soon issue proposals on raising social payments
Azerbaijan’s shares data on GDP growth for 9M2021
Uzbekistan, Tajikistan resume bus transportation
Iran's IRENEX discloses sales of Persian Gulf Fajr Energy Company
Georgia shares data on COVID-19 cases for October 18
Iran's Energy Exchange announces products to be on sale on October 18
Our historic victory - beginning of new era in development of both our country, region as whole - President Aliyev
It is far more difficult to preserve independence than to gain it - President Aliyev
Azerbaijan, Qatar sign agreement on mutual abolition of visas
President Ilham Aliyev addresses nation on occasion of 30th anniversary of restoration of independence
Press conference of Azerbaijani, Qatari FMs (PHOTO/VIDEO)
Weekly review of trading at Turkmenistan's commodity exchange
Georgia to hold discussion on 2022 state budget
Volkswagen's Skoda Auto halts production for two weeks
Serious steps must be taken in Iran regarding food security - Ministry of Health
Weekly review of Azerbaijani oil market
Azerbaijani FM receives his Qatari counterpart (VIDEO)
This year we celebrate October 18 with pride and happiness, having witnessed glorious history written by victorious Azerbaijani Army - Turkic Council's SecGen
Turkey reveals cargo traffic with Saudi Arabia for 8M2021
Iran’s Bahar Azadi gold coin price dips
Turkish Ambassador congratulates Azerbaijan on Day of Restoration of Independence
Iran’s CBI shares amount of currency sold at NIMA exchange rate
Israel significantly increases steel imports from Turkey in 9M2021
UN International Court of Justice to hold hearings on Azerbaijan’s claim against Armenia
Azerbaijani judo team finishes performance at tournament in Paris
Georgia and US plan to sign co-op agreement in field of defence
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Central Bank of Turkmenistan’s names TOP-3 banks with largest number of issued cards
Student opens fire in school near Perm
Students of Baku Higher Oil School to take part in NASA competition
Azerbaijani FM shares Tweet marking Day of Restoration of Azerbaijan's Independence
Oil prices climb as COVID recovery, power generators stoke demand
Azerbaijani judokas grab silver, bronze medals at European Cup
China's GDP expands 9.8 pct in first three quarters
Turkey to open logistics centers in several provinces by end of 2023 (Exclusive)
U.S. Secretary of State Blinken discusses Afghanistan with Qatar
1,642 more COVID-19 cases reported in Kazakhstan
Heads of Japan major parties to hold debate ahead of key election
Israel reports rise in cyberattack attempts against hospitals
Erdogan arrives in Angola in first leg of Africa tour
Facebook plans to hire 10,000 in EU to build 'metaverse'
At least one dead, several injured in shooting incident in U.S.
UK to fund new nuclear power station as part of net zero drive
Former U.S. president Clinton released from hospital
U.S. administers 408.3 mln doses of COVID-19 vaccines - CDC
French ambassador leaves Belarus - embassy
Google dedicates doodle to Azerbaijan's Restoration of Independence Day
Chronicles of Victory: President Aliyev announces that Azerbaijan's armed forces raised Azerbaijan's flag over ancient Khudaferin Bridge (VIDEO)
Chronicles of Victory: October 18, 2020
Georgian CEC calls on public to participate in October 30 municipal run-offs
Turkey expresses interest in expanding activities of Turkish companies in Kyrgyzstan
Helicopter crash kills three in Germany
We will return IDPs who suffered for 30 years to their native lands as soon as possible - Azerbaijani president
Heydar Aliyev did not allow referendum on preserving Soviet Union to be held in Nakhchivan - Azerbaijani president
It is completely inappropriate to celebrate 18 October with great pomp, says Azerbaijani president
UK records more than 40,000 COVID cases for fifth day in a row
Cargo movements in Iran’s Qeshm port up
Amendments on national holidays are fully consistent with historical truth and historical justice - Azerbaijani president
First Vice-President Mehriban Aliyeva makes Instagram post on visit to Fuzuli district (PHOTO)
Georgia faces fifth Covid-19 wave, observing recommendations much needed, NCDC Head says
UNHCR opens alternative route of aid to Afghanistan via Uzbekistan
Azerbaijan allocates funds for construction of Fuzuli Memorial Complex
All news