Realization of TAP depends on Shah-Deniz gas

Realization of the Trans-Adriatic Pipeline (TAP) project depends on
the launching of gas supplies from Shah-Deniz at the Azerbaijani
sector of the Caspian Sea, spokesman of the project, Michael Hoffmann,
told Trend.

The first gas supplies of the second stage of development of
Shah-Deniz are expected in early 2017. The field will produce up to 25
billion cubic meters annually. Hoffmann says the TAP is part of the
Southern Energy Corridor project.

Partners of the Shah-Deniz field plan to sign contracts on gas sales
of the second stage of the gas project in mid-2011.

A contract on developing the sea field Shah-Deniz was signed on June
4, 1996. Participants of the project include BP (25.5%), Statoil
(25.5%), NICO (10%), Total (10%), Lukoil (10%), TPAO (9%) and SOCAR
(10%).

The ATP project will transport gas from the Caspian region to Europe.
The pipeline starts in Greece and runs through Albania and the
Adriatic Sea to Italy. The underwater section between Albania and
Italy will be 120 km long. The project is worth approximately 1.5
billion euros. The pipe will connect to the infrastructure of Greece
and Italy. It will initially transport 10 billion cubic meters of gas
annually, with a capacity of 20 billion. The pipeline will be 520 km
long.

The shareholders of the project are EGL (Switzerland, 42.5%), Statoil
(Norway, 42.5%) and E.ON Ruhgas (Germany, 15%).