June 13, 2016

by AEA in News

Time period for TAP construction revealed

Onshore construction activities within the Trans Adriaric Pipeline (TAP) project will commence in parallel in all the host countries during the summer of 2016, while offshore construction will take place in the winter of 2017/2018.

The source said that TAP’s construction activities are progressing in line with the project schedule.

“Following TAP’s construction inauguration ceremony (17 May 2016 in Thessaloniki) the project contractors have been mobilized. TAP’s main marshalling yards have been prepared and batches of line pipes and bends continue to arrive in the ports of Thessaloniki and Kavala (Greece) as well as Durres (Albania),” the source said.

“Also, the construction and rehabilitation of access roads and bridges (combined progress) in Albania is over 65 percent complete,” the source added.

The overall construction phase will take approximately three years and will be completed in 2019, according to the source.

TAP project envisages transportation of gas from the Stage 2 of development of Azerbaijan’s Shah Deniz gas and condensate field to the EU countries.

The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

Last week the Greek Ministry of Environment and Energy has granted TAP its Installation Permit for Greece.

Together with the Installation Act, secured in January 2016, the Installation Permit allows the pipeline construction activities in Greece to start in line with the project schedule.

October 2, 2015

by AEA in News

SOCAR’s buying stake in DESFA runs smoothly.

The process of acquisition of a 66 percent stake in the Greek DESFA gas operator by SOCAR (State Oil Company of Azerbaijan) runs smoothly, Greek Productive Reconstruction, Energy and Environment Minister Panos Skourletis said, the Greek media reported Oct.1.

Skourletis made the remarks at a meeting with Azerbaijani Ambassador to Greece Rahman Mustafayev, Adviser to the SOCAR President Murad Heydarov and head of SOCAR Energy Greece Anar Mammadov.

Skourletis went on to add that one should expect the concrete results on the sale of DESFA’s stake to SOCAR in the coming months.

“This process is developing in a way which would meet the requirements of the European Commission’s Directorate-General, and it runs smoothly,” said Skourletis.

In addition, the sides discussed the implementation of the TAP pipeline project during the meeting.

The Greek minister told at the meeting about the overall progress achieved during discussions with the TAP representatives on resolving the issue regarding the gas pipeline route on the Greek territory.

Earlier, SOCAR President Rovnag Abdullayev said that SOCAR is ready for talks with European companies on selling the 16-percent share in Greek DESFA gas transmission system operator.

SOCAR won a tender in December 2013 on the sale of 66-percent share in DESFA for 400 million euros.

The European Commission started an inquiry into the compliance of the deal on acquisition of a stake in DESFA with the EU’s regulations In November 2014. Currently, the deal is being considered by European Commission’s Directorate-General for Competition, and the procedure will last until late 2015.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries and filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. The company is the co-owner of the largest Turkish petrochemical complex, Petkim, and other assets in Turkey.

The company is currently carrying out work as part of ensuring the Azerbaijani gas supplies to Europe. Work is underway in this regard within the second stage of development of the Shah Deniz offshore gas and condensate field, and for expansion of the South Caucasus Pipeline.

Moreover, projects are being developed for construction of the Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).

TAP will transport natural gas from the giant ‘Shah Deniz 2’ field in Azerbaijan to Europe.

The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

The pipeline’s construction is expected to start in 2016.

TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

July 20, 2015

by AEA in News

Statoil to leave TAP gas pipeline project – Azerbaijan’s SOCAR

Norway’s Statoil is to sell its 20-percent stake in the Trans Adriatic Gas Pipeline (TAP) project that will carry gas from Azerbaijan to Europe, the president of Azeri state energy firm SOCAR said.

“Statoil has decided to leave the TAP project completely, and there is a company which is ready to buy its stake,” Rovnag Abdullayev told Azeri ANS TV late on Friday.

“Several companies have expressed an interest in buying Statoil’s stake, and it would be better if several companies would buy it,” he added.

Statoil did not comment on the news.

“We generally do not comment on speculations on adjustments to our portfolio,” Statoil’s spokesman told Reuters.

The TAP pipeline is a part of project that is designed to transport 16 billion cubic metres (bcm) of gas from Azerbaijan’s Shah Deniz II field in the Caspian Sea, one of the world’s largest gas fields, by the end of the decade.

The 870 kilometre (545 mile) pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before reaching southern Italy.

Statoil has already sold its shares in Azerbaijan’s Shah Deniz gas field as well as the South Caucasus Pipeline (SCP) to SOCAR, BP and Malaysia’s Petronas.

Italian gas infrastructure company Snam said last month that it could take a stake of up to 20 percent in the TAP project that is designed to reduce Europe’s reliance on Russian gas.

CEO Carlo Malacarne said that as gas buyers are signing binding, long-term ship-or-pay contracts for the Azeri gas, the transmission revenue is guaranteed and this opened the way for regulated infrastructure players like Snam to enter the project.

Officials decline to comment on the price, but insiders say a 20 percent TAP stake could be valued at around 400 million euros ($433.72 million).

TAP’s shareholders are BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Belgium’s Fluxys (19 percent), Spain’s Enagas (16 percent) and Swiss company Axpo (5 percent). ($1 = 0.9223 euros)

Source:Reuters