TAP and its shareholders - Axpo, Statoil and E.ON have concluded a Shareholder Agreement with three members of the Shah Deniz Consortium: SOCAR, BP and Total, TAP reported today.
The Shareholder Agreement, finalised and initialled by all parties, stipulates how the TAP Joint Venture will be governed by an enlarged shareholder group comprising of Statoil, E.ON, Axpo, SOCAR, BP and Total as shareholders, TAP reported.
The Shareholder Agreement will take effect once SOCAR, BP and TOTAL decide to exercise their options to join the TAP Joint Venture, taking a combined stake of up to 50% in TAP AG.
The TAP project is one of the key elements of the broader Southern Gas Corridor value chain, which, along with the Trans Anatolian Pipeline (TANAP) and the South Caucasus Pipeline (SCP), will transport Shah Deniz Stage 2 gas from Baku to the European Union. The Shah Deniz Consortium expects to make a final decision on the preferred European gas transportation solution by mid-2013.
According to TAP Managing Director Kjetil Tungland, the Shareholder Agreement is yet another important milestone demonstrating TAP's relative advanced position compared to alternative pipeline routes, following the signing of the Cooperation Agreement, Option and Funding Agreements, in June and August 2012 respectively. "I look forward to continuing the same close cooperation with the Shah Deniz Consortium throughout the course of 2013," he said.
The Trans Adriatic Pipeline (TAP) is a natural gas pipeline project. The 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. TAP will open a new so-called Southern Gas Corridor to Europe and establish a new market outlet for natural gas from the Caspian Sea.
The project is designed to expand transportation capacity from 10 to 20 bcm per year. TAP also envisages physical reverse flow of up to 80 per cent and the option to develop natural gas storage facilities in Albania to further ensure security of supply during any operational interruption of gas deliveries.
TAP's shareholders are Axpo of Switzerland (42.5%), Norway's Statoil (42.5%) and E.ON Ruhrgas of Germany (15%)./Trend/