Shareholders in the Trans Adriatic Pipeline (TAP) natural gas project reached an accord with members of the Shah Deniz consortium to secure funding for the project. The agreement also includes an option for the Shah Deniz shareholders to take as much as 50% equity in TAP.
TAP partners are Switzerland’s EGL 42.5%, Norway’s Statoil 42.5%, and Germany’s E.On Ruhrgas 15%. Shah Deniz partners are BP PLC, State Oil Co. of Azerbaijan Republic, and Total SA.
“These funds will contribute towards continued work in several important areas during the period running up to the final routing decision, expected in 2013,” a TAP news release said.
TAP will transport gas from the giant Shah Deniz II development in Azerbaijan, shipping it via Greece and Albania, across the Adriatic Sea to southern Italy, and then into Western Europe.
Most recently, Total E&P Absheron filed a notice of discovery and commerciality for the Absheron offshore block east of Shah Deniz field in the Caspian Sea off Azerbaijan (OGJ Online, July 2, 2012).
TAP will open up the so-called Southern Gas Corridor, enhancing Europe’s energy security by diversifying the region’s gas supplies.