...

Montenegro Bonus: IAP company to be operational in weeks

Oil&Gas Materials 15 November 2018 14:45 (UTC +04:00)

Baku, Azerbaijan, Nov.15

By Leman Zeynalova – Trend:

The company for construction of the Ionian Adriatic Pipeline (IAP) will be operational in weeks, 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.

“Process of IAP company establishment is in its final stages. We still do not have the final date when the company will be operational. I would say it is a matter of weeks, rather than months,” he said.

Djuranovic noted that the exact activities of will be known when company becomes operational.

Further, he said that the next date of the Project Management Unit depends on the final agreements about the establishment of the company. “It should be organized before the Ministerial Council in February in Baku.”

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). The capacity of the pipeline will amount to five billion cubic meters of gas per year.

Total length of the pipeline is 511 kilometers.

TAP worth 4.5 billion euros 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).

The European Bank for Reconstruction and Development (EBRD) is considering allocation of 500 million euros loan for TAP project. Aside from EBRD, the European Investment Bank (EIB) will also discuss the allocation of 1.5 billion euros loan for TAP in February.

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest