TAP, Bulgaria Main Priorities of New European Gas Initiative
The European Commission confirmed that Trans Adriatic Pipeline (TAP) and interconnectors to and from Bulgaria are its top priorities to diversify supply sources. Against this backdrop, investments in the pipeline to bring Azeri gas to Italy seem less risky despite the current geopolitical complexities. In this sense, it comes as little surprise that Italy’s Snam might soon acquire a stake in the pipeline.
CENTRAL EASTERN, SOUTH EASTERN EUROPEAN ENDORSE ACTION PLAN
“This region is very important for Europe, in particular when we look at security of energy supply. The improvement of infrastructure through realistic and feasible projects is crucial to diversify energy resources and strengthen the region's resilience to supply shocks. Cooperation among the countries of the region is key in this regard. I myself and the entire Commission support this process, notably in the framework of the European Energy Union Strategy” EU Commission Vice-President for Energy Union Maroš Šefčovič said on Friday.
Thirteen nations, mainly from the former Soviet bloc, signed the Memorandum of Understanding in Dubrovnik on Friday. The document formally launches the initiative.
‘A number of infrastructure projects, such as the Trans-Adriatic Pipeline (TAP), LNG terminal in Croatia and evacuation system, system reinforcement in Bulgaria and Romania, interconnectors between Greece and Bulgaria and between Serbia and Bulgaria, have been identified as top priorities in the Action Plan annexed to the Memorandum’ reads the note released by the European Commission.
Austria, Bulgaria, Croatia, Greece, Hungary, Italy, Romania, Slovakia, Slovenia, Albania, Former Yugoslav Republic of Macedonia, Serbia and Ukraine signed the document. Bosnia and Herzegovina and Republic of Moldova will sign at a later stage.
European authorities said that the projects should be financed by market participants, but the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) could take a more active role in case of financing problems.
SNAM AND TAP
According to an article published by Reuters on Thursday, Azerbaijan would welcome Snam’s decision to take a stake in the TAP project. During a visit to Milan’s EXPO, Azerbaijani President Ilham Aliyev said that Baku would not stop such a decision of the Italian company.
At the moment, TAP’s current shareholders are UK’s BP (20%), Azerbiajan’s SOCAR (20%), Norway's Statoil (20%), Belgium's Fluxys (19%), Spain's Enagas (16%) and Switzerland’s Axpo (5%).
Last month, Snam CEO said the company was interested in buying a 20% stake in TAP.
Last week, TAP announced the start of construction and rehabilitation work on access roads and bridges along the pipeline’s route in Albania.
GAZPROM MEETS HUNGARIAN POLITICIAN
Many see in the initiative a way to decrease dependence on Russia.
However, according to a message on Twitter, Gazprom CEO and Hungary's Ambassador to Russia addressed energy cooperation and gas supplies to Europe via Nord Stream II and Turkish Stream on Friday. This might indicate that there could be internal divergencies among the 13 countries that signed the document in Dubrovnik.