Shah Deniz partners commit funding for TAP; mull 50% stake

By bne IntelliNews August 10, 2012

bne -

The Trans Adriatic Pipeline announced on August 9 that it has reached an agreement with members of the Shah Deniz Consortium developing the huge Azeri gasfield to secure funding for the pipeline project. The agreement also includes an option for the Shah Deniz shareholders to take up to 50% equity in TAP.

TAP is competing with Nabucco West for the right to transport Shah Deniz gas from Turkey into the EU. The pipeline will run via Greece and Albania, across the Adriatic Sea to Southern Italy, and further into Western Europe, and is designed to expand transportation capacity from 10bn to 20bn cubic metres per year (cm/y), the company said in a press release.

The Trans-Anatolian pipeline (TANAP) won the right to carry 16bn cm/y of gas from the second phase of Shah Deniz - being developed by BP, Statoil, Total, Lukoil, Naftiran Intertrade and Turkiye Petrolleri, alongside the Socar - to the Turkish border with Greece in June. Shah Deniz will decide on a northern or southern route into Europe next year.

The deeper involvement of the Shah Deniz consortium could offer TAP an advantage in the final routing decision; Norway's Statoil was already involved in TAP, alongside EGL and E.ON Ruhrgas. At the same time, in June, Nabucco West beat out the BP-backed South-East Europe Pipeline for the right to compete in the final decision.

"Our cooperation with Shah Deniz is now even closer and more far-reaching than before," said Kjetil Tungland, TAP's managing director. "This agreement will strengthen our continued working relationship in the run-up to the final routing decision. We remain confident of a positive outcome."

Shah Deniz partners commit funding for TAP; mull 50% stake

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss