Tirana, May 12, 2008. The Swiss company, EGL, is moving ahead with its project to build the Trans-Adriatic Pipeline, called TAP, through Turkey, Greece, and Albania. EGL has even enlisted the help of the Swiss president to open diplomatic doors to assure the completion of the project. During his visit in Azerbaijan last week, Pascal Couchepin, the Swiss president, discussed with Azerbaijan President, Ilham Aliev, “the big projects”, and the possibility of supplying the Trans-Adriatic Pipeline with Azeri gas.
The representatives of the EGL accompanied the Swiss president and they were pleased to present their plans to the Azeri president. The head of the Azerbaijani State gave “positive signals”, said Joachim Conrad, a member of the leadership of EGL. However, he indicated that discussions were not over and no has been signed.
If EGL secures long-term contracts for the supply of its pipeline with Azeri gas, it can begin, almost immediately, to build the pipeline. It is expected that EGL is going to make the final decision in the second half of 2009 and the pipeline is scheduled to become operational in 2012.
EGL has already signed a deal with Iran. The contract was criticised by the U.S. government, which is trying to isolate and enforce economic sanctions against Iran. Therefore, the US government declared that they are not going to support those European companies that contract for new deals with Iran. According to the contract that was signed on 17 March 2008, Iran is going to supply 5.5 billion cubic meter of gas every year, with a price of between $110 and $250 per 1000 cubic meter.
On April 22, EGL signed a co-operation agreement with the Norwegian StatoilHydro. EGL and StatoilHydro agreed to establish an equally owned joint venture that will develop, build and own the Trans Adriatic Pipeline. StatoilHydro is a major oil and gas company and one of the most important gas suppliers in Western Europe.
The Trans-Adriatic Pipeline (TAP) is competing with the European project, Nabucco, which must pass through Bulgaria, Romania and Hungary. For the leaders of EGL, the project has advantages compared to Nabucco including, it is already well advanced, distances to be covered are shorter and it already has secured the supplies of a major gas producing country, Iran. Swiss neutrality is also seen as an asset. The TAP project is, in its development phase, supported by the European Union (EU) as a “Priority Project” under its Trans-European Energy Networks (TEN-E) guidelines, as it contributes to the EU’s objectives and policies aimed at diversification and security of gas supply.
TAP is supposed to transport huge quantities of gas from Turkey via Greece and Albania to Italy (Puglia) through an undersea pipeline and continue on to Western Europe. The project includes the building of a 520 km new pipeline capable of transporting 10 billion cubic metres annually, with the option to expand to 20 billion cubic metres annually. TAP’s offshore length will measure some 115 kilometres. In its upstream section, TAP will interconnect with Greece’s existing pipeline system which is linked further to the east with systems in Turkey. The project is projected to cost Euro 1.5 billion.
About EGL
Swiss-based EGL Group is an asset-based energy trader with 19 European subsidiaries and offices. It is accredited to trade on the most important European energy exchanges. EGL holds interests in Swiss power plants and gas-fired combined-cycle power plants in Italy, and holds long-term electricity supply contracts with electricity producers in France. It is investing in additional power production capacities and transport infrastructure in key European markets. The company is majority-owned (87.4 percent) by AXPO Group, a leading Swiss energy supply company. The remaining shares are traded on the SWX Swiss Exchange.
About StatoilHydro
StatoilHydro is a major international, integrated energy company, based in Norway. The company is the leading operator of oil and gas activities on the Norwegian continental shelf (NCS). StatoilHydro has operations in 40 countries and 31,000 employees. It is the world’s third largest net seller of crude oil and the second largest supplier of gas to Europe. As technical service provider for the major pipeline systems for gas from the NCS and for two large gas processing plants, StatoilHydro has extensive experience in transportation, processing and marketing of piped gas. StatoilHydro also markets liquefied natural gas (LNG). The Norwegian state is the largest shareholder in StatoilHydro, with an ownership of 62.5 percent. StatoilHydro is listed on Oslo B
