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BP, Total, Socar to fund TAP gas pipeline

09th August 2012

Shah Deniz consortium stakeholders pledge to fund the Trans Adriatic Pipeline, which will transport gas from central Asia to Europe

BP, Total, Socar to fund TAP gas pipeline
TAP will transport natural gas from the Shah Deniz II development in Azerbaijan via Greece and Albania to southern and western Europe

BP, Total and Socar have pledged to fund the Trans Adriatic Pipeline (TAP) project, TAP said in a press release on Thursday. TAP will transport gas from central Asia to Europe, as the region hopes to ease its dependence on Russian gas.

The Trans Adriatic Pipeline (TAP) project has reached an agreement with Shah Deniz gas consortium stakeholders BP, Total and Socar, which includes an option for the Shah Deniz stakeholders to take up to 50 per cent equity in TAP.

“Our cooperation with Shah Deniz is now even closer and more far-reaching than before. This agreement will strengthen our continued working relationship in the run-up to the final routing decision,” said TAP managing director Kjetil Tungland.

TAP will transport natural gas from the Shah Deniz II development in Azerbaija via Greece and Albania to southern and western Europe.

The Shah Deniz field is one of the world’s largest gas-condensate fields, with over 30 trillion cubic feet of gas, according to BP. The UK-based major is field’s operator and holds a 25.5 per cent stake in the project. Socar and Total each own a 10 per cent stake in the project.

Designed to expand transportation capacity from 10 to 20 billion cubic meters per year, TAP will open up the so-called Southern Gas Corridor. The project will enhance Europe’s “energy security,” TAP said.

The region seeks to ease its dependence on Russian gas and avoid supply disruptions caused by disputes between Russia and Ukraine over gas deliveries via Ukrainian territory.
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