TAP and DESFA ink co-op accord

Source: AzerNews

The Trans Adriatic Pipeline (TAP), which has recently selected by the Shah Deniz Consortium to transport the Caspian gas to Europe, has signed a cooperation agreement with Greek natural gas transmission system operator, DESFA.

The TAP reported that the sides plan to enter into an agreement on day-to-day technical operation and maintenance for the Greek section of the TAP pipeline.

"Other joint activities will include the review of interconnection points with the DESFA pipeline system to further enhance security of supply and technical cooperation," the report reads.

TAP's Country Director in Greece Rikard Scoufias said that having been chosen by the Shah Deniz Consortium as the best option to transport gas to Europe, the Project now moves into the next phase of execution.

" We already collaborate with many local Greek companies and aspire to increase this engagement. This agreement, which comes after more than 9 months of constructive engagement with DESFA, constitutes a major step towards successful realisation of TAP's plans in Greece," he said.

TAP's Commercial Director Lutz Landwehr appraised the collaboration with DESFA.

"We recognise their long-standing operational expertise in Greece, and both our organisations share views on the importance of developing the gas markets across the Eastern and Western Balkans,"he said.

The 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 coming ashore in Southern Italy.

The longest section of the TAP pipeline will be in Greece. The Greek section of the pipeline will start at Kipoi at the Turkish-Greek border, and will cover some 550km entering Albania northwest of Dipotamia. As such, the project will support Greece's ambition of becoming an important "Energy Highway." Furthermore, the planned interconnection points and reverse flow capability of TAP will also support security of supply for other countries in the region.

Designed to expand the capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas Corridor, enhancing Europe's energy security by providing a new source of gas.

TAP's shareholders are Axpo of Switzerland (42.5%), Norway's Statoil (42.5%) and E.ON of Germany (15%). Shah Deniz Consortium members - BP, SOCAR and Total - also have the option to join the project.

DESFA (subsidiary of DEPA, public natural gas supply corporation of Greece) is a natural gas transmission system operator in Greece, responsible for operation and maintenance of the Greek Natural Gas Transmission System.

Azerbaijan's state energy company SOCAR earlier reported that it is set to purchase the natural gas grid operator DESFA.

SOCAR was the sole bidder to buy DESFA after Russian energy company Sintez and Greek-Czech group PPF-Terna dropped out of the bidding earlier this month. SOCAR has improved its offer to buy a 66% stake in the company to €400 million.

SOCAR President Rovnag Abdullayev said that the importance of SOCAR's involvement in the privatization of Greek DESFA has increased even more following the decision on the Caspian gas export route.

"Participation in the privatization of DESFA is a commercial project. Acquisition of equity in DESFA opens up great opportunities for SOCAR. Specifically, the Greek company has an LNG terminal which will supply liquefied natural gas to Greece and then ensure the supply of gas to the Balkan countries," Abdullayev said.

Purchase of equity interest in DESFA will allow SOCAR to participate in various investment projects in the Balkan countries and, in particular, to be involved in the process of gas supply in Albania, which is currently at a very low level.