Looming Shah Deniz Decision Turns On TAP
BMI View: The impending final investment decision on phase II of the Shah Deniz project, expected on December 17th, has led the TAP consortium to begin preparations for its 870km pipeline into Europe. Tenders for materials are due to be issued in early 2014 if Shah Deniz moves forward, as we expect, though negotiations with the 55,000 land owners in Greece, Albania and Italy could impact the scheduled construction start in 2015.
Following the announcement that a decision is expected to be made on phase II of the Shah Deniz field on December 17 th, the Trans-Adriatic Pipeline (TAP) consortium is moving forward with plans in an effort to meet its targeted start up in 2019. The TAP will transport up to 10bn cubic metres (bcm) of gas from an expansion of the Azeri Shah Deniz field from the Kipoi on the Greek-Turkish border, through Greece and Albania, then under the Adriatic to San Poca in Southern Italy. The pipeline is scheduled to begin construction in 2015 with first deliveries commencing in 2019.
Pending a much anticipated positive final investment decision (FID) on the second phase of the Shah Deniz project, the partners in TAP will send invitations for tenders in early 2014. BP, which operates the Shah Deniz field, is due to take a decision to undertake an expansion to produce a further 16bcm of gas on December 17 th. We fully expect this to move forward as supply agreements for the full volume have been signed, and the project has the backing of Turkey and the EU.
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|Imports Of Gas Into Europe By Country 2012 & 2019, %|