TAP Managing Director: 2012 to be momentous year

Azerbaijan, Baku, Dec. 12 / Trend A.Badalova/ 2012 would be a momentous year, with critically important decisions, Managing Director of Trans Adriatic Pipeline (TAP) AG, Kjetil Tungland said in his New Year´s message published on TAP official website. He said that 2011 was massively important, both for the industry and the Trans Adriatic Pipeline. The Trans Adriatic Pipeline will transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. The total length of the pipeline is about 800 kilometers. TAP's shareholders are EGL of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent). Gas which will be produced during the second stage of Shah Deniz field development is considered as the main source for TAP project. Within the Shah Deniz-2 project Azerbaijan plans to export 10 billion cubic meters per year to Europe. On Oct. 1, TAP along with the other pipeline projects (Nabucco, ITGI) submitted their final proposals to the Azerbaijani side, which review them in accordance with previously announced criteria. The decision on the preferable transportation route is expected to be made until the first quarter of 2012. Tungland also stressed a growing sense of a need for urgency. "Those very momentous events of 2011 - the catastrophe at Fukushima, the Arab Spring, spiraling domestic energy prices - have made even more clear the necessity of securing Europe's energy future," he said. He said that the Southern Gas Corridor can play an important part in this issue, but he stressed that it is essential that the industry starts work as soon as possible. "Whichever project is chosen, it is clear that there is still much work and planning ahead to complete the infrastructure for gas to reach Europe from the Shah Deniz field in Azerbaijan to the market in Europe," Tungland said. He believes that TAP is better placed than ever before to win the contract to transport the gas. "We have demonstrated categorically that our project is the most viable - in terms of financing, technical capability, route selection and environmental and social impact," he said.