Construction of TAP gas pipe for export of Azeri gas to Europe to commence only in 2015

Construction of TAP gas pipe for export of Azeri gas to Europe to commence only in 2015

Final investment decision expected in 2013 on framework of full-scale development of Shah Deniz (SD FFD) will not accelerate construction of Trans-Adriatic gas pipe line (TAP pipeline) at all, selected for export of Azeri gas to Europe.

The Consortium for Construction of TAP pipeline states that, laying of pipeline is scheduled to start in 2015, in order to provide gas supplies in 2019.

“By mid-2014 creation of construction infrastructure for TAP pipeline on land areas is scheduled to be accomplished” it is informed. Total length of the pipeline is 871 km.

One of the main participants of TAP Pipeline, AXPO a Swiss company (with 42.5% share in consortium) prior indicated that construction of TAP will cost 5 bn Swiss francs ($5.3 bn). The gas pipeline to be ready by 2019 will be able to transport 10-20 bn cu m of gas a year from Turkey to Italy.

At an early dates membership of shareholders of consortium will significantly change, today AXPO and Statoil hold 42.5%, E.On holds 15%of shares. Three shareholders of consortium on development of Shah Deniz Project (SOCAR, BP, Total), are likely to purchase 50% stake in the project from the existing shareholders. At that, SOCAR and BP are planning to get 20% of participation each, leaving only 10% for Total.

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