BP, SOCAR, Total, Fluxys Join TAP

BP, SOCAR and Total exercised their option to join the Trans Adriatic Pipeline AG (TAP), reads a note released on Tuesday.

BP and SOCAR have each acquired a 20% share, Total has taken 10%. BP, SOCAR and Total are members of the international consortium developing the giant Shah Deniz field in Azerbaijan. The four companies join Statoil (20%), Total (10%), E.ON (9%) and Axpo (5%).

“In addition, Fluxys, a major gas transit operator in Europe, has opted to join TAP, taking a 16% stake in the project. TAP’s shareholders, Axpo of Switzerland, Statoil of Norway and E.ON of Germany also continue their support of the project,” reads the note, adding that the TAP’s shareholders would welcome any strategic partnership in the future.

TAP has emerged as a winner in a long race, primarily against the Nabucco project, in a June 28th decision by the Shah Deniz Consortium. The result surprised at least a few as numerous off-the-record estimations by stakeholders concluded that both projects would be selected, or that an eventual delay on the decision was to be expected.

“I would like to welcome the Shah Deniz shareholders and Fluxys to the TAP project. Our new shareholders will significantly enhance TAP’s strategic position in becoming an integral link between both their upstream and downstream businesses. This will further strengthen the integration of the entire Southern Gas Corridor value chain and support TAP’s delivery of the project on time and on budget,” commented Kjetil Tungland, Managing Director for TAP.

As a result, Europe is to receive gas from the Caspian Basin, the second largest gas basin in the neighborhood after Russia, via the fourth route also known as the Southern Gas Corridor.  Construction of the TAP is set to kick-off in 2015. It has been designed to expand the capacity from 10 to 20 bcm per year.