TAP Makes Pipeline Progress in Southern Corridor

The Trans-Adriatic Pipeline (TAP) has entered into an agreement with Bosnian system operator BH-Gas for the future extension of the planned gas pipeline.

The two companies agreed, "to explore opportunities for developing natural gas markets and enhancing supply diversity in South East Europe (SEE)".

Backed by EGL, Statoil and E.ON Ruhrgas, the 520km pipeline will begin its route in the Greek city of Thessaloniki, crossing Albania before running across the bottom of the Adriatic Sea for 115km to southern Italy.

TAP proponents describe it as the shortest and most-cost-effective method of transporting Azeri gas from the Shah Deniz II field to European markets via Italy.

TAP Managing Director Kjetil Tungland said in a statement the deal was a step in the right direction for energy security.

"With this signature, TAP has taken yet another step to respond to the strategic challenges of energy supply for Europe," he said.

The development follows February's announcement of similar deal between TAP and Plinacro Ltd, which operates the Croatian national natural gas pipeline system.

Plinacro, together with BH-Gas, are promoting the Ionian Adriatic Pipeline, which intends to deliver gas to Croatia, Bosnia, Montenegro and Albania.