Trans Adriatic Pipeline: chances for success

Trans Adriatic Pipeline: chances for success

Baku, Azerbaijan, November 17 / Trend /

Azer Ahmadbayli, Trend Agency Analytical Center Expert

The last remaining project, of three ones considered a potential route of gas export from Azerbaijani field Shah Deniz, which has not yet been "PR-ed" in Baku, is the Trans Adriatic Pipeline (TAP). At last, following the visit of the President of Austria who voiced his backing to project Nabucco, and the arrival of Greek Energy Minister who is the supporter of project Interconnector Turkey-Greece-Italy (ITGI), Swiss Energy Minister Doris Loytard arrived in Baku to meet senior governmental officials of Azerbaijan. In a statement for press released several days prior to Mrs. Loytard's visit, the Swiss Embassy said the key objective of the visit was to back TAP, one of which shareholders is Switzerland's EGL.

One fact draws attention at once. As reported recently, the throughput capacity of TAP can be increased up to 20 billion cubic meters per annum. "Though the TAP initial designed throughput capacity is 10 billion cubic meters a year, several options of construction of the pipeline make it possible to double it due to insignificant investments. A large-diameter pipe can be used for a submarine section to cross the Adriatic Sea at a depth of not more than 810 meters. Under such choice of pipeline dimensions, any further increase of throughput capacity requires just an additional compression," the report reads.

The possibility of doubling the pipeline's capacity with insignificant investments is a weighty argument favoring this project, especially with the consideration of statement of US Secretary of State's Special Envoy Richard Morningstar. On his visit to Baku, Morningstar said, unexpectedly to many, that it is expedient to start implementing the Southern Gas Corridor Project with a pipeline with a smaller throughput capacity, which is expected to increase subsequently in future. Certainly, one of the most decisive factors, if not of utmost importance, in choosing a route will be gas transit tariff. But possibly, the Shah Deniz Consortium partners are forced to take the financial crisis in the Eurozone area into account not to a lesser extent. Perhaps, exactly the sad financial situation that forces the EU to cut investments for large projects, at a time when there is no EU specific agreement with Azerbaijan and Turkmenistan, makes Nabucco, with its value, a load too heavy to lift. At least, Morningstar has now spoken on this thought diplomatically through shifting accent toward cheaper projects.

The EU, in the face of its leaders, Germany and France tries to make every effort to prevent collapse of the Eurozone, with Greek's potential leaving it considered first step toward collapse. In this connection, there is one more argument favoring TAP. In August, the TAP Consortium officially announced an increase of the pipeline's extent by 300 kilometers (the Greek section) up to a total of 800 kilometers. TAP Consortium officials said this decision confirms and will strengthen further TAP commitments on Greece, and will make it possible to create new jobs in Greece and supply the country with investments worth more than 1 billion euros in the period of sad financial crisis in the country.

Another fact that should be kept in mind is that Norway's Statoil is one of the shareholders of TAP (42.5 percent interest) and at the same time holds 25 percent interest in the Shah Deniz Consortium. Thus, it is to assume that the TAP has one "pro" vote amongst the Shah Deniz shareholders, which would have been quite natural.

Murad Heydarov, Adviser to SOCAR Head, stated yesterday that choice of a route of Azerbaijani gas export to Europe is quite essential from the point of exporting gas from not only Shah Deniz but also such promising deposits as Nakhchivan and Babek, deepwater gas from the fields Azeri-Chirag-Gunashli, etc. Undoubtedly, this increases the chances of the TAP having the potential of a further considerable increase of its throughput capacity.

But do not also forget the fourth, BP-offered transportation route, which assumes gas export via the territory of Bulgaria to Southeastern Europe, a region that needs gas supply routes diversified, probably, most of all.

The TAP is one of projects of the Southern Gas Corridor. The pipeline will take its start in Greece, pass the territory of Albania and the Adriatic Sea and onward to Italy. The project is preliminarily valued at 1.5 billion euros. In Italy and Greece, the pipeline will be linked to the existing gas transportation infrastructure. The pipeline's total extent is around 800 kilometers.

TAP shareholders are Switzerland's EGL (42.5 percent), Norway's Statoil (42.5 percent), and Germany's E. ON Ruhrgas (15 percent).

Armenia refuses to participate in event to resume dialogue with Azerbaijan
Armenia refuses to participate in event to resume dialogue with Azerbaijan
Azerbaijani president appoints temporary Health Minister
Azerbaijani president appoints temporary Health Minister
Azerbaijani president signs decree on dismissal of Health Minister
Azerbaijani president signs decree on dismissal of Health Minister
Loading Bars
Erdoğan, Biden hold phone call, agree to meet at June NATO summit
Method of enriching uranium relies on pre-scheduled plan
Armenia refuses to participate in event to resume dialogue with Azerbaijan
Azerbaijan’s AzerGold company opens tender to buy services
Turkey’s export of cars to Kyrgyzstan increases
Diversification of economy may increase Azerbaijan's credit rating - Unicapital
Kazakhstan, Malaysia eye closer co-op within Islamic Organization for Food Security
Georgia opens regional beekeeping center via support of Chezch investors
CNPC branch in Turkmenistan opens tender provision of supervision services
Moderna CEO says world faces 2022 COVID vaccine production surplus
E-auction for right to explore and produce hydrocarbons wraps up in Kazakhstan
Azerbaijan eyes to expand pomegranate export in 2021
Very ambitious reforms carried out in energy sector of Georgia - deputy minister
Azerbaijan, Hungary agree to cooperate in developing e-government
Uzbekistan remains largest importer of Kazakh wheat
United Airlines gets summer ready; to add over 480 flights to U.S. schedule
Israel's Health Ministry warns against travel to seven countries
Ambassador of Georgia to Ukraine returns to his duties
Georgia's import of tubes, pipes, hollow profiles from Turkey decreases
Georgia's Geostat reveals volume of ferroalloys exported to Turkey
Azerbaijan, Turkey to exchange experience on capital markets dev't
Georgia sees increase in volume of new mortgages - TBC Capital
Port of Baku may be transferred to private management - Director-General
Turkey reveals volume of cargo shipped through ports since early 2021
Kazakhstan suspends trade, economic co-op agreement with Croatia
Georgia can become one of 25 largest blueberry exporters in world
Public sector of Turkmenistan increases production volumes
Kazakhstan reveals physical volume of GDP for 2020
Azerbaijan announces date for export of domestic cars to Ukraine
Georgia's imports of medical products from Turkey down
Turkmenistan to participate in implementation of container line between Russia, Iran
Azerbaijan publishes data on number of vaccinated citizens for Apr. 23
Azerbaijani president appoints temporary Health Minister
IFC to provide assistance to Georgia in field of investment
Georgia sees increase in import of vehicles from Turkey
TAP implementing €800,000 worth program to reduce marine litter
Georgian exports of knitwear to Turkey up
Nar launches “Reading hour” Project for schoolchildren
Total volume of bank deposits of Azerbaijani population slightly decreases
Azerbaijan confirms 1,809 more COVID-19 cases, 2,191 recoveries
Georgia joins European Union's Eurodesk network
AmEx profit beats on over $1 bln reserve release boost
Azerbaijani president signs decree on dismissal of Health Minister
Azerbaijan publishes 1Q2021 data on gas exports to Italy
Businesses in Georgia to begin recovery in 2H2021 - Banking Association of Georgia
Lending to public organizations in Azerbaijan drops
Uzbekistan considers co-op with Caspian states as priority direction of foreign policy strategy
Azerbaijan cooperates with leading countries in robotics development - ministry
CNPC subsidiary opens tender in Turkmenistan for purchase of electrical materials
Deutsche Bank supports its Kazakhstan-based partner banks amid COVID-19 crisis
Turkey’s support of Georgia’s integration into NATO - crucial - Georgian FM
Azerbaijan shares data on bank deposits in foreign currency
Uzbekistan, US talk strategic partnership prospects
Panasonic to buy U.S. supply-chain software firm Blue Yonder for $7.1 bln
Iran's TPO expects trade growth
Germany’s biased attempt to undermine Azerbaijan - blatant hypocrisy - Azerbaijani political analyst
Kazakhstan-Romania trade plummets
Georgia sees surge in labor market
China-Europe Rail Transit Corridor to pass through Iran - RAI
Bank of Russia increases key rate to 5% per annum
N. Macedonia soon to ink deal for pipeline to get Azerbaijani gas
Azerbaijan sees annual decrease in deposits of local banks
Azerbaijan shares data on cotton sown area
Turkmenistan's Turkmenstandartlary opens tender for purchase of testing gas meters samples
SOCAR buys 3 oil tankers from Greek maritime corporation - sources
Iran's Mercantile Exchange to offer cars for sale
Azerbaijan's ASCO to engage tanker insurance services via tender
More joint border crossings could boost Iran-Pakistan trade ties - Chamber of Commerce
Iran's exports to Africa down
Azerbaijan hopes US Administration will not make historical mistake - Assistant to president
Iran's priority to provide COVID-19 vaccine from abroad than wait for domestic one - official
Turkey’s export of chemicals to US surges
Uzbek-Korean JV opens tender for compressors spares
Cargo turnover at Turkish Antalya Airport declines for 1Q2021
Students of Baku Higher Oil School become winners of ‘Enactus Azerbaijan Spring School’ project
Turkey discloses number of companies with Uzbek capital since early 2021
Iran receives new batch of Russian 'Sputnik V' COVID-19 vaccine
Azerbaijani IT company expands its range of solutions through int'l co-op
SpaceX rocketship launches 4 astronauts on NASA mission to space station
Turkey discloses number of Gemlik port-received ships in 2M2021
Decrease in bank lending observed in Baku and Azerbaijani districts
France should abandon OSCE MG co-chairmanship - French Senate member
Turkmenistan, Kazakhstan discuss issuing visas to drivers
TCO unveils timeframe plans for annual maintenance turnaround at Kazakhstan’s Tengiz
Azerbaijan discloses national team at Rhythmic Gymnastics World Cup
Defeat in Second Karabakh War - hard psychological point for Armenia, says Russian analyst
Germany ready to take part in gas production expansion projects in Kazakhstan
Uzbekistan's gold and foreign exchange reserves keep declining
Share of non-budgetary organizations in compulsory social insurance receipts increases in Azerbaijan
TOP-10 importers of Azerbaijani oil in 1Q2021
Uzbekistan’s volume of received cross-border transfers increases
Georgian reveals volume of funds spent on utility bill subsidy
Georgia, Ukraine to issue electronic permits for int'l cargo transport
Kazakhstan decreases production of raw sulfur over 1Q2021
Uzbekistan eyes exporting fresh and dried fruit, vegetable products to Latvia
Georgia increases imports of cars from Turkey
International Forum on Attracting Investment in Oil, Gas Industry of Turkmenistan select sponsor
JOCAP details plans for platform around Oil Rocks
Russia records another 8,840 coronavirus cases
JOCAP updates on progress in operations of PLBH for Absheron project
All news