Enagas joins TAP. Fluxys ups stake
- Business & Finance
Spain’s Enagás will acquire 16% of Total and E.ON’s stake in the company that is developing the Trans Adriatic Pipeline (TAP) project. Belgium’s Fluxys will buy an additional 3% share, lifting its ownership to 19%.
The TAP project is part of the Southern Gas Corridor which is to supply Europe with gas from Azerbaijan sourced at the Shaz Deniz field in the Caspian Sea.
This project involves the construction of an 871 km long pipeline linking Turkey and Italy and running through Greece and Albania, including the associated compressor stations. The pipeline will run for 547 km through Greece, 211 km through Albania, 8 km through Italy and 105 km offshore under the Adriatic Sea, with an initial capacity of 10 bcma (billion cubic metres per annum). In line with the timetable of the Shah Deniz field in the Caspian Sea, first gas deliveries of gas to TAP in Europe are scheduled for approximately 2019.
TAP’s shareholding is now comprised of BP (20%), Socar (20%), Statoil (20%), Fluxys (19%*), Enagás (16%) and Axpo (5%).
Kjetil Tungland, Managing Director at TAP said: “The TAP Joint Venture has always been open to new strategic partners and I am very pleased to welcome Enagás to TAP. This continues our successful joint-venture model that has brought producers, midstream players and gas buyers together to develop this important project.
“Enagás, as a major gas company with a long track record of important infrastructure investments in Europe and South America, will help to enhance TAP’s strategic position as a truly European project that will transport a new source of gas to the continent’s energy markets.”
Andy Lane, Chairman of the Board of Directors for TAP AG said: “As we prepare for the next crucial stage, starting with the construction of roads and bridges in Albania in early 2015, I would also like to thank both E.ON and Total for their strong commitment and contribution to TAP’s development and welcome Enagás as a new shareholder in TAP.”
The European market is one of the key areas of international growth specified in the Enagás 2013-2015 Strategic Update. Therefore, participating in this project is a major step forward in the company’s internationalisation process, the Spain-based company said in a press release.