BP has confirmed the Trans Adriatic Pipeline consortium has won the race to carry natural gas from Azerbaijan’s major Shah Deniz II field.
The official confirmation comes two days after OMV, which led the rival Nabucco West bid to carry the gas, admitted defeat in their efforts to land the deal.
“Azerbaijan’s first gas to Europe will be exported via the TAP pipeline,” said Gordon Birrell, BP regional president for Azerbaijan, Georgia and Turkey.
The decade-long project – led by BP, Statoil and Azeri firm SOCAR – anticipates production coming from one of the world’s largest gas fields by 2019.
The Trans Adriatic Pipeline will deliver 10billion cubic metres from the field per year, collecting it in Turkey and routing it through Greece and Albania to southern Italy.
TAP, whose members include Statoil, Swiss company AXPO and E.On, said in a statement it would work with the Shah Deniz consortium on a final investment decision on the 870-kilometre (540-mile) long pipeline to be taken later this year.
“This is the first and important step in opening up the Southern Gas Corridor and, as we look ahead, the Southern Gas Corridor will have a major role to play in Europe’s energy security and ensuring the diversification of gas supplies to Western and South Eastern European markets,” said TAP managing director Kjetil Tungland.
“I am deeply impressed with the results TAP has achieved and immensely proud of having been part of the team for the last three years. Over the next few months, we will continue to work hard with the SDC to ensure that they are able to take a successful final investment decision later this year.”
Nabucco West’s bid had proposed a 1,329km route from Turkey through Bulgaria, Romania and Hungary, finishing in Austria. Earlier this week, ahead of the official decision, OMV announced they had lost the bid and were looking at alternative projects.
Confirmation of the TAP bid being approved was welcomed by the EU commission presient Jose Manuel Barroso.
“This is a shared success for Europe and a milestone in strengthening the energy security of our Union,” he said.
“I am confident that today’s decision, which builds on the strategic Joint Declaration I signed with President Aliyev of Azerbaijan in January 2011, will provide further momentum to the full and rapid realization of the entire Southern Gas Corridor as a direct and dedicated link from the Caspian Sea to the European Union, which should be expanded over time.”
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