Funds secured for next-phase Caspian gas line studies

Offshore staff

BAAR, Switzerland – The partners in the Shah Deniz field offshore Azerbaijan have agreed on funding for the Trans Atlantic Pipeline (TAP) gas export project. The funds will assist work in the run-up to the final routing decision, expected next year.

Additionally, the agreement includes an option for the Shah Deniz shareholders to take up to 50% equity in TAP. Shareholders in TAP are EGL, E.ON Ruhrgas, and Statoil.

TAP will take gas from theShah Deniz II development in the Caspian Sea via a southern corridor route that will pass through Greece and Albania, across the Adriatic Sea to southern Italy, and eventually to western Europe.

Depending on supply and demand, transportation capacity could be expanded from 10 to 20 bcm/yr (353 to 706 bcf/yr).

TAP also envisages physical reverse flow of up to 80% with an option to develop natural gas storage facilities in Albania to strengthen security of supply during any operational interruption of gas deliveries.

8/09/2012