New Energy Roads: Trans Adriatic Pipeline Pt.3

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During the past months, Security Affairs have indicated the importance of the Trans Adriatic Pipeline as the route of transport of the Azeri Shah Deniz II gas to Europe.

Although the competition was hard, in 28th of June the Shah Deniz Consortium confirmed the choice of TAP, introducing Greece, Italy and Albania to the new energy era of Europe. With this agreement and after the initiation of transport, the European countries will no more depend only on Russia and Algeria for their natural gas needs, considering Azerbaijan as their new powerful energy partner.

The Consortium also pointed out that this particular choice was made because of the project's advanced economic and technical characteristics. Thanks to these characteristics, Trans Adriatic Pipeline prevailed over NABUCCO West, the until recently predominant pipeline whose route was including Hungary, Bulgaria, Romania and Austria.

For the three countries that will host TAP, the implementation of the project will offer an economic and geopolitical boost, including new job positions, raise of investments and a higher energy profile towards the European Union. Italy is going to gain a wider energy independence from Algeria and its natural gas supplies. Regarding Greece, it is an important move against the economic crisis and the hyperbolic voices about "Grexit", prompting international investors to approach the market in wider scale. And of course, for Albania, the pipeline agreement is synchronized with a major political change, the victory of the Alliance for a European Albania and its leader Edi Rama; the  important energy project and the defeat of Sali Berisha which was widely considered as a sign of growing democratic maturity of Albania, is a promising combination for its future.

Trans Adriatic Pipeline will be approximately 870 km long, connecting with Trans Anatolian Pipeline (TANAP) near Greek-Turkish borders. It is designed to expand the capacity from 10 to 20 bcm per year and will open up the so-called Southern Gas Corridor, strengthening Europe's energy security by providing a new natural gas source.

New energy roads: Trans Adriatic Pipeline Pt.2

On 13th of January 2013, the trilateral Intergovernmental Agreement regarding the Trans Adriatic Pipeline (TAP) was signed. Greece, Italy and Albania took a big step towards the final choice of TAP as the exclusive one to transport the gas from Azerbaijan to Europe, by the Shah Deniz consortium.

The Agreement was signed by the Greek Minister of Foreign Affairs Dimitris Avramopoulos, the Italian Minister of Development Corrado Passera, and the Albanian Minister of Economy, Trade and Energy Edmond Haxhinasto. The ceremony took place  at the Ministry of Foreign Affairs in Athens, Greece, with the presence of officers from the Azerbaijani government, the TAP consortium (Statoil, Axpo, E.ON Ruhrgas) and the Shah Deniz consortium (BP, Socar, Total). It has to be noted that on the occasion of his visit in Greece, Eric Rubin, the U.S. Deputy Assistant Secretary of State was also present to the ceremony.

The Italian Minister Corrado Passera pointed out the important role of TAP as a strategic infrastructure to strengthen the security of supplying energy  to Europe. Mr. Passera made clear that the plan of his government is to turn Italy into the main gas hub of Southern Europe and added that his country should play an important  role within the general European Energy Policy.

On their side, Greek Minister Dimitris Avramopoulos and Prime Minister Antonis Samaras noted the establishment of a new framework of cooperation with Italy and Albania, and the strategic role of the project for the energy security in the European Union. Mr. Samaras mentioned the advantages of TAP compared to the other pipelines planned for the region (shorter route, lower cost, smalled number of countries involved), and said that Greece is determined to attract even more foreign investors in the country.

Finally, the Agreement was welcomed by the European Commissioner for Energy, Günther Oettinger, who expressed the full support of the European Commission towards the Trans Adriatic Pipeline project and added that this agreement has set the legal framework for the pipeline. "This is another important step towards our aim to get gas directly from the Caspian Region" the EU Energy Commissioner said.

However, for the moment, the members involved in this project can only wait until June 2013 in order to find out if TAP will be the pipeline chosen to transport the Caspian gas in Europe, through the South.

Initially posted by Giorgos Dimitriadis on The Pryer, UK.

New energy roads: Trans Adriatic Pipeline Pt.1

The Trans Adriatic Pipeline (TAP), is the project of the homonymous company that plans to build and develop the pipeline  which will transfer the natural gas from the Shah Deniz II in Azerbaijan, to Europe, through Greece, Italy and Albania. The company shareholders are the SwissEGL, the Norwegian Statoil and the German E.ON Ruhrgas; the two first hold 42.5% of the shares respectively, while the latter holds 15%. TAP will be the pipeline which will connect Middle East with Europe, opening the “Southern Gas Corridor”.

It is estimated that TAP will have a transportation capacity of approximately 10 bcm per year, depending on demands. Pipeline’s length will be approximately 800 km; 478 km will be in Greek, 204 km in Albanian and 5 km in Italian territory, while 105 km will be across the Adriatic Sea.

On 27th of September, the States of Greece, Italy and Albania, signed a Memorandum of Understanding in New York, providing officially their support towards the project. The three Foreign Ministers, Dimitris Avramopoulos (Greece), Giulio Terzi (Italy) and Edmond Panariti (Albania), along with company representatives, signed this MoU, affirming the necessary backing -in governmental level- of the pipeline construction and proper function.

It is clear that European Union makes efforts to cut its dependence on the Russian gas supplies, by reaching the Caspian Sea reserves and the Azerbaijan development of Shah Deniz through other routes. Russia provides EU with approximately 25% of its needs, so Trans Adriatic Pipeline is expected to be a milestone to the change of this dependence.

Of course, TAP is not the only project of gas transportation at this region. The alternative projects include the Nabucco Pipeline, also known as “Turkey-Austria Pipeline”, which will include Austria, Turkey, Bulgaria, Romania and Hungary, the Greece-Italy Pipeline, which will include Greece and Italy, and the South Stream project, that will include Russia, Greece, Bulgaria, Serbia, Italy, Hungary, Austria, Slovenia and Turkey.

Initially posted by Giorgos Dimitriadis on The Pryer, UK.