Germany and France withdraw from Trans Adriatic Pipeline AG

Germany and France withdraw from Trans Adriatic Pipeline AG

Germany and France have withdrawn from Trans Adriatic Pipeline AG (TAP) being created for Azerbaijani gas transportation.

TAP AG informs that E.On (9%) and Total (10%) sold their equity stakes to Fluxys and new shareholder Enagás (Spain). As a result, existing shareholder Fluxys increased its stake in TAP from 16% to 19% and Enagás joined the project as a new shareholder with a 16% stake in the company.

As a result, TAP’s shareholding is now comprised of BP (20%), SOCAR (20%), Statoil (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

Kjetil Tungland, Managing Director at TAP said: “The TAP Joint Venture has always been open to new strategic partners and I am very pleased to welcome Enagás to TAP. This continues our successful joint-venture model that has brought producers, midstream players and gas buyers together to develop this important project. Enagás, as a major gas company with a long track record of important infrastructure investments in Europe and South America, will help to enhance TAP’s strategic position as a truly European project that will transport a new source of gas to the continent’s energy markets.”

CESD experts underlined that the reason why France and Germany have left the consortium is related to the period of returns. Since no short and mid-term benefit is planned, the indicated companies have decided to withdraw from the TAP.

Beside that, total cost of Shahdeniz-2 Project has been increased. The total cost was $ 40 billion US formerly and although $ 45 billion US was announced as the total cost of the project in December, 2014, there is other concern that a cost will be increased to $ 50 billion US.

Earlier the TAP AG shareholders were BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).

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