BP Ventures to Greece - TAP on the Table
Senior BP officials involved with the Shah Deniz consortium recently travelled to Athens to meet with Greek governmental officials to discuss the prospects of the Southern Corridor and specifically, the potential role of the Trans Adriatic Pipeline in the movement of natural gas from the Azeri field.
Alasdair Cook, BP's Vice President for Shah Deniz Full Field Development (FFD) recently revealed that the company will take a "substantial" stake in the pipeline project, after it dropped plans to pursue its SEEP project.
The Shah Deniz consortium has also indicated interest in acquiring a stakeholding in TAP’s competitor, the Nabucco West pipeline, indicating that the consortium will, either way, hold an interest the winning proposal to bring gas from the Caspian Sea to Europe.
Cook and BP political adviser John Baldwin, met with Greek energy minister Makis Papageorgiou (a former chairman and chief executive of DEPA, the natural gas supply corporation of Greece) to discuss the position of the new Greek government.
According to well-placed sources, BP is seeking a trilateral joint declaration by the governments of Greece, Italy and Albania in favor of TAP.
Mr. Cook noted in statements to the local press that BP has four distinct points to offer to Greece, should it support TAP.
Firstly, it would allow for the placement within the country the critical EU project of the Southern Corridor. Secondly, it would provide for the diversification of Greece's natural gas imports by the importation of Azeri gas. Thirdly, it would provide increased competition within the domestic gas market and fourthly, it would provide a large infrastructure investment that is sorely needed for an ailing Greek economy.
Cook noted that binding governmental support is required so as for the project's partners to be able to consider the country as a preferential territory for the pipeline.
Furthermore Cook said that BP is closely looking into the process of DEPA's pending privatization, whose prospects would be enhanced by the import of Azeri gas. Moreover DEPA's entrance into the TAP consortium, would be welcomed.
TAP could also compliment the Greek-Bulgarian Interconnector (IGB) which is scheduled to be operational next year, a clear indication for leverage for this pipeline in light of the wider diversification criteria that the EU is seeking for Southeastern Europe.
The Greek Minister indicated a position of encouragement towards TAP, without binding Athens for the time being. The recently formed government is a coalition of three parties with diverging energy policies, and it speculated it will take some time before a joint stance is found.
BP's officials also met with Ioannis Maniatis, Secretary of the PASOK party and former Deputy Minister for the Environment, Energy and Climate. During the talks, Maniatis spoke to Greek position in detail.
Maniatis mentioned geopolitical issues to be addressed along the Southern corridor's route, the potential involvement of DEPA into the project, the details around the import of Azeri gas under long-term contracts and the pros and cons between TAP and Nabucco West relating to the supply of the Balkans.
BP's point of view was to note of the points raised and agreement was reached for further visits to Athens in order to clarify the points under which both sides can have a solid cooperation.
Although the full transcripts of both meetings with Papageorgiou and Maniatis were not released, sources from the Greek Ministry of Energy indicate that we are in the beginning of a long-process of negotiations, since the policies relating to TAP have to take into account several other important factors, such as DEPA's privatization, the role and the stance of both Italy and Russia and the specific needs of each Balkan state. Lastly the relations between Greece and Turkey are another point, that requires the consideration of the Greek side.
Shah Deniz consortium is due to take its final decision on which pipeline, TAP or Nabucco West, will transport Azeri gas to Europe, by May 2013.