
The Switzerland-based EGL signed a memorandum of understanding with the Turkish stated-owned enterprise Botas defining framework conditions for the planned transport of natural gas through Turkey to Europe, the EGL reported.
The document also covers activities in oil and natural gas transport, as well as gas trading.
"Today's signing of the memorandum lays the groundwork for further cooperation," said Markus Brokhof, the head of the Division Gas Supply & SEE and a member of the EGL Executive Management.
Under this agreement, the two companies can now directly negotiate concrete transit rights for the transport of natural gas from the Caspian region and the Middle East through Turkey to Europe.
EGL seeks to further diversify its natural gas procurement portfolio through the Azerbaijani gas. In June 2010, the Swiss company opened its office in Baku to strengthen possible partnerships in the area of natural gas procurement.
EGL is one of three shareholders in the Trans Adriatic Pipeline (TAP) project, where it has 42.5 percent share. The pipeline EGL plans to export significant volumes of natural gas from the Shah Deniz II gas field in Azerbaijan through Turkey to Europe via the TAP.
Based on the document, EGL and Botas also want to evaluate cooperation on the TAP project, as well as exploring possibilities for joint marketing of natural gas, and for cooperation in the area of liquefied natural gas (LNG).
TAP is planning to construct a natural gas pipeline that will connect Greece with Italy, via Albania and the Adriatic Sea. The pipeline is part of the European Union-designated Southern Gas Corridor which will link Caspian gas sources to Europe and provide significant reverse flow capacities. At 520km, the TAP is the shortest and most cost efficient of the proposed pipelines in the corridor.
The shareholders of the project are the Swiss EGL Company (42.5 percent), Norwegian Statoil (42.5 percent) and German E.ON Ruhrgas (15 percent).
/Trend/