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Terms of Reference for IAP project finalized

Oil&Gas Materials 7 November 2017 12:42 (UTC +04:00)

Baku, Azerbaijan, Nov.7

By Leman Zeynalova – Trend:

Terms of Reference for the Ionian-Adriatic Pipeline (IAP) have been finalized, Zarko Djuranovic, Director of Energy and Consulting Department at Montenegro Bonus company, told Trend.

Montenegro Bonus is one of the participants of the Project Management Unit for IAP, which will provide deliveries of Azerbaijani gas to several countries of South-Eastern Europe. The capacity of the pipeline will amount to five billion cubic meters of gas per year.

“The Terms of Reference for the project have been finalized and it is expected that selected consultant will be on the ground in the next few weeks. Also, the procedure for the adoption of the Special Purpose Spatial Plan for Coastal Region of Montenegro, with IAP route in it, is in its final stages,” said Djuranovic.

He pointed out that after the establishment of IAP Project Management Unit (PMU) in 2016, Montenegro is hosting its Permanent Secretary.

Government of Montenegro and Montenegro Bonus as a transmission system operator for natural gas are committed and very determined to undertake all activities which will lead to the construction of IAP, added the company’s director.

“In the immediate future, our activities are focused on the preliminary design of the Albanian and Montenegrin sections of IAP, with relevant Environmental and Social Impact Assessments and independent technical reviews. Western Balkans Investment Framework approved 2.5 million euros for this purpose,” he noted.

As for the meetings on IAP, Djuranovic said that planned dynamics of IAP PMU meetings is to have two regular meetings in the calendar year.

“This year we had the meeting during the 3rd Ministerial Meeting of Southern Gas Corridor (SGC) Advisory Council in Baku in February and the second meeting in early September in Tirana. It is highly likely that the next IAP PMU meeting will be again held in Baku in February, during the next SGC Advisory Council Ministerial Meeting, unless the extraordinary meeting is required in the meantime, due to the unforeseen urgent matters,” he said. “We are currently reviewing and considering the possibilities and options on how the current IAP PMU could become an efficient and effective vehicle which will accelerate finding potential investment partners, as well as the potential partners interested in the IAP as a gas transport facility.”

Djuranovic pointed out that IAP will certainly find its place in the 2018 list of Projects of Energy Community Interest (PECI) and Projects of Mutual Interest (PMI).

IAP is a proposed natural gas pipeline in Southeastern Europe (SEE) that will stretch from Albania through Montenegro, and Bosnia and Herzegovina, to Split in Croatia. It will be connected with the Trans Adriatic Pipeline (TAP).

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

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).

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