Trans Adriatic Pipeline Reconfirms Shah Deniz II (Azerbaijan) as the Initial Gas Source for the Pipeline

The Trans Adriatic Pipeline (TAP) highlighted  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 520-km pipeline via Greece and Albania to southern Italy offers the shortest route to the European mar-ket and is the most cost-effective gas transportation solution in the Southern Gas Corridor.

TAP’s schedule is fully aligned with the development of Azerbaijan’s Shah Deniz gas field. Currently, the project is at the front-end engineering design stage, refining the pipeline route and preparing for the final investment decision and construction.

“The TAP pipeline will be ready when Shah Deniz phase two starts production.” Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project said.

About TAP

The 520km long pipeline will transport gas via Greece and Albania and across the Adriatic Sea to Italy’s southern Puglia region and further to western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. TAP will open a new so-called Southern Gas Corridor to Europe and market outlet for natural gas from the Caspian Sea. The project is designed to expand transportation capacity from 10 to 20 bcm per year depending on throughput. 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.

The Trans Adriatic Pipeline is supported by the EU as a TEN-E project (Trans European Networks – En-ergy), in conformance with its energy policy and has been categorized by the EU Commission as an EU Interconnector. The development of TAP will continue to comply with all EU gas transport policies. Further-more, the project enjoys political support and is named as part of the Italy-Albania IGA (intergovernmental agreement).

The project has established registered branches in all three host countries and is currently in front-end engi-neering. A feasibility study was concluded in 2006 with basic engineering completed in 2007 and the off-shore survey finished in early 2009. TAP is committed to adhering to the highest environmental and social standards and has conducted extensive re-routing studies and consultations in Albania and southern Italy during 2009.

About EGL

EGL is a European energy trading company with its own assets. EGL is a leader in proprietary trading, in the sale of standardised products and in the development of structured products and innovative services for customers. EGL is accredited to trade on all major European energy exchanges and is listed on the SIX Swiss Exchange. Its head office is in Dietikon, near Zurich (Switzerland). It also has a local presence in many parts of Europe, through more than 20 of its subsidiaries

About Statoil

Statoil is an international energy company with operations in 40 countries. Building on more than 35 years of experience from oil and gas production on the Norwegian continental shelf, the company is committed to accommodating the world’s energy needs in a responsible manner, applying technology and creating innovative business solutions. Statoil is headquartered in Norway with 30,000 employees worldwide. The company is the world’s largest operator of deepwater fields. It a major seller of crude oil and a Europe’s second largest gas supplier. Statoil is listed on Oslo Børs and New York Stock Exchange.

About E.ON Ruhrgas

E.ON Ruhrgas is a leading European gas company based in Essen, Germany. In the E.ON Group operating worldwide, it is responsible for pan-European gas business. The E.ON Ruhrgas group has a workforce of over 3,000 employees. In 2009, it supplied a total of 52,992 billion m³ of gas to its customers, who include local and regional energy suppliers, industrial companies and power stations. Its supply system comprises gas pipelines with an overall length of 11,600 km, underground storage facilities in Germany and Austria with a working gas capacity of more than 10 billion m³ all over Europe.

Source: TAP,September 22, 2010,

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