TAP sees Shah Deniz II as Gas Source
The Trans Adriatic Pipeline (TAP) announced today that the Shah Deniz II natural gas field in Azerbaijan is the initial target of gas intended for the project.
In a joint statement, shareholders EGL, Statoil and E.ON Ruhrgas said: "The TAP pipeline is designed to cater for the volumes of gas from Shah Deniz phase two that will be exported beyond Turkey into Europe.
TAP shareholders consider Caspian gas to be the initial source of supply to fill TAP’s initial capacity of 10 bcm per year. The pipeline will not transport any Iranian gas under the current political circumstances."
The TAP pipeline, 520km in length, will begin in the Greek city of Thessaloniki and cross Albania before running across the bottom of the Adriatic Sea for 115km to Brindisi in Italy and onwards to Western Europe. The TAP partnership says it offers the shortest route to the European market and is the most cost-effective gas transportation solution in the Southern Gas Corridor.
"The TAP pipeline will be ready when Shah Deniz phase two starts production." Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project said.
Currently, development of Azerbaijan’s Shah Deniz gas field is at the front-end engineering design stage, refining the pipeline route and preparing for the final investment decision and construction. Kemal Abbasov, head of SOCAR's gas export division, said on Wednesday that production at Shah Deniz II would likely begin at the end of 2016 or early 2017.
TAP shareholder Statoil also holds an 25.5 ownership share in Shah Deniz and is the commercial operator of the gas field.
The TAP project also envisages the development of natural gas storage facilities in Albania to further ensure security of supply during operational interruptions of gas deliveries.
TAP, together with Italy-Turkey-Greece Interconnector project and the Nabucco pipeline project are designed at enhancing security of supply as well as diversification of gas supplies for the European markets. Each project is looking towards securing supplies from Shah Deniz II.
Source: Trans Adriatic Pipeline