Shah Deniz shareholders, Fluxys join TAP

TIRANA, July 30 – Three Shah Deniz shareholders and another gas transit operator in Europe have joined the Trans Adriatic Pipeline, recently announced as the winning project to bring Caspian gas to Europe through Greece, Albania and Italy. TAP announced this week that UK-based BP, Azerbaijan state energy company SOCAR and France’s Total, members of the international consortium developing the giant Shah Deniz field in Azerbaijan, have exercised their option to join the Trans Adriatic Pipeline AG.
BP and SOCAR have each taken a 20 percent share while Total has acquired 10 percent. In addition, Belgium’s Fluxys, a major gas transit operator in Europe, has opted to join TAP, taking a 16 percent stake in the project. TAP’s shareholders, Axpo of Switzerland, Statoil of Norway and E.ON of Germany also continue their support of the project.
TAP’s shareholding is now comprised of BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).
“I would like to welcome the Shah Deniz shareholders and Fluxys to the TAP project. Our new shareholders will significantly enhance TAP’s strategic position in becoming an integral link between both their upstream and downstream businesses. This will further strengthen the integration of the entire Southern Gas Corridor value chain and support TAP’s delivery of the project on time and on budget,” said Kjetil Tungland, Managing Director for TAP. TAP’s shareholders say they remain open to further strategic partners joining the project in the future.
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 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 routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others.
Designed to expand the capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas Corridor. TAP will act as the link to Azerbaijan and other gas producers in the Caspian Sea and wider region, thereby enhancing Europe’s energy security, by providing a new source of gas.
A study conducted by the prestigious Oxford University has demonstrated the substantial potential economic benefits for Albania by the landmark pipeline. Findings by Oxford Economics study show that during its four years of construction (2015-18), inclusive of direct, indirect and induced effects, TAP will contribute a total of Euro 370 million to Albanian GDP, create, on average, 9,900 jobs per year and generate Euro 90 million for the Albanian treasury.
In addition, during its expected 50 years of operation, inclusive of direct, indirect and induced impacts, the project is predicted to contribute a total of Euro 780 million to Albanian GDP, create 460 jobs per year, and generate Euro 470 million in tax revenues.