WEEKLY COMMENTARY: TAP & IAP Progressing towards Bringing Azeri Gas to SouthEast Europe

The Trans-Adriatic Pipeline (TAP) is a natural gas pipeline project that intends to transport natural gas from the Azerbaijan natural gas field, Shah Deniz,, through Turkey, Greece, and Albania to Italy, supplying southeast and central Europe with up to 10 billion cubic metres of natural gas per year.  The Shah Deniz Field is operated by BP (25.5%) which leads the consortium that also includes Norweigan Statoil (25.5%), French TOTAL (10%), Russian Lukoil (10%), Iranian NIOC (10%), Turkish TPAO (9%) and the State Oil Company of Azerbaijan (Socar) (10%).

In June, the Shah Deniz consortium chose the TAP pipeline as its preferred pipeline to transport its natural gas reserves to Turkey, Greece, Italy, and Central and Southeast Europe, effectively also ensuring the realisation of the Ionian Adriatic Pipeline (516 km) connecting Croatia, Bosnia-Herzegovine, Montenegro and Albania to the TAP pipeline.  The TAP/IAP pipelines are considered to be an alternative source of natural gas to the present domination of Russian gas and also an alternative to the Gazprom South Stream pipeline project.  TAP is scheduled to be completed by 2018/2019…

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