TAP will be one of the largest sources of foreign direct investment in Greece, and is estimated to cost approximately Euro 1.5 bn for the Greek section. During construction, TAP is anticipated to create some 2,000 direct, and up to 10,000 indirect, new jobs across a number of industries including manufacturing and utilities, transport, communications and financial and business services. The project already collaborates with a number of Greek businesses and experts, and will seek to expand such cooperation in line with its commitment to Local Content.
TAP will enhance Europe’s energy security and diversity by providing a new source of gas. The pipeline will transport natural gas from the giant Shah Deniz II development in Azerbaijan, through Greece and Albania to Italy, from where it can be transported further into Western and Central Europe.
The longest section of the TAP pipeline will be in Greece. The pipeline will start at Kipoi at the Turkish-Greek border, and will cover some 550km entering Albania northwest of Dipotamia. As such, the project will support Greece’s ambition of becoming an important "Energy Highway." Furthermore, the planned interconnection points and reverse flow capability of TAP will also support security of supply for other countries in the region.
Kjetil Tungland, TAP's Managing Director, stated: "We have now all necessary political agreements in place for the Shah Deniz decision. I remain absolutely confident that our proposal is the strongest from the technical, commercial and political points of view, with the overwhelming support of the host governments. I would like to also thank the Greek Government in particular for making this incredible achievement possible and also for their continuing political support to TAP.”
Rikard Scoufias, TAP’s Country Director for Greece, added: “Concluding on the contents of this agreement has required a significant amount of work from both parties. This achievement has resulted not only in an important component for securing Greece’s and TAP’s bid for the Southern Gas Corridor, but also constitutes an international benchmark for expediency in terms of establishing a positive investment climate. With the support provided by the Greek Government, as well as the Greek Parliament, I feel that we are well on our way to deliver a project that will have notable positive impact on Greece, the region as well as European energy objectives.”
About the Trans Adriatic Pipeline (TAP)
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to the most attractive markets in Europe. The pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy, the third largest gas market in Europe, provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.
TAP’s shareholders are Axpo of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON of Germany (15%). Shah Deniz Consortium members BP, SOCAR and Total each have options to purchase shares in TAP which if exercised in full would give them a total ownership of 50% of TAP. It is expected that the options will be exercised immediately following selection of TAP in June 2013 as the gas transportation route to Europe. Currently, BP, SOCAR and Total are participating in the funding of the development of the TAP project.
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