Shah Deniz Consortium secures funding for TAP
BP, State Oil Company of Azerbaijan (SOCAR) and Total, the stakeholders of the Shah Deniz Consortium, have committed to provide the founding to joint venture made of EGL Energy (EGL), Statoil and E.ON Ruhrgas for the Trans Adriatic Pipeline project
The Trans Adriatic Pipeline (TAP) is a section of the gas pipeline to carry out the natural gas from Shah Deniz gas field development phase 2 in Azerbaijan to Europe through the southern European countries.
Based in Baar, Switzerland, the Trans Adriatic Pipeline is a joint venture company with working interests shared between:
– EGL from Switzerland 42.5%
– Statoil from Norway 42.5%
– E.ON Ruhrgas 15%
EGL and Statoil will jointly build and operate the Trans Adriatic Pipeline.
Through the funding agreement, the TAP joint venture agreed to open the opportunity to the Shah Deniz Consortium to take up to 50% equity in TAP.
BP, Socar and Total selected Southern Gas Corridor
TAP will be 800 kilometers long from Komotini in Greece, across Albania and the Adriatic Sea to reach San Foca in southern Italy.
TAP will used the so called Southern Gas Corridor accommodated to connect Europe to all the additional sources of gas supply.
The offshore section of the Trans Adriatic Pipeline will link Fier, in Albania to Italy in lying on the shallow water of the continental shelf by 810 meters at the deepest point and along 105 kilometers coast to coast
EGL, Statoil and E.ON Ruhrgas designed the TAP with the following characteristics:
– 800 kilometers long
– 48 inches onshore size
– 36 inches offshore size
– 10 billion cubic meter (bcm)/y
– 1 compression station at start in Komotini, Greece
– 1 compression station in Fier, Albania, to provide the additional compression to compensate the pipe decrease in size.
– A Pipeline Receiver Terminal (PRT) located near Melendugno in the Lecce Province for decompression, and connection to the local gas grid
– A Central Control Center located in the PRT with back up in Albania.
In addition to this first phase of the Trans Adriatic Pipeline, the joint venture of EGL, Statoil and E.ON Ruhrgas are already considering some project expansions:
– 2 optional compression stations may be added later in a second phase to double production to 20 bcm/y
– Gas storage facility in underground salt formations, in the Dumre region, 50 km South of Tirana
EGL, Statoil and E.ON to complete FEED for TAP
In 2006, EGL performed the feasibility study of the project
In 2008, TAP started to work on the front end engineering and design (FEED)
In 2012, Shah Deniz partners select TAP for their phase 2 transportation with a Final Investment Decision (FID) to be made in 2013 in targeting commercial operations in line with Shah Deniz II start up in 2017/2018.
Originally budgeted at $1.8 billion capital expenditure, based on 520 km, the actual design of 800km is estimated to exceed the $2 billion.
The Trans Adriatic Pipeline agreement between the joint venture EGL, Statoil and E.ON Ruhrgas, and the Shah Deniz partners is following the agreement signed in June between BP, Socar and Total with Turkey about the Trans-Anatolian (TANAP) gas pipeline section to supply TAP.