Norwegian energy firm StatoilHydro and Swiss energy trading firm EGL Group have announced the signing of an agreement to establish an equally owned joint venture to develop, build and operate the Trans-Adriatic pipeline.
The Trans-Adriatic pipeline (TAP) will reportedly open a new corridor and market outlet for natural gas from the Caspian Sea and Middle East regions into Europe.
The 520km long pipeline will transport gas via Greece and Albania and across the Adriatic Sea to Italy’s southern Puglia region and further into western Europe. TAP’s offshore length will measure about 115km. In its upstream part TAP will interconnect with Greece’s existing pipeline system that is linked further to the east with systems in Turkey.
The gas transport capacity of the pipeline will be around 10 billion cubic meters (bcm) annually, with the option to expand to 20bcm. TAP is expected to be operational from 2011, at the earliest, depending on the gas shipment needs.
Implementation of the TAP project is subject to a final investment decision planned for the second half of 2009. EGL, which started the project, estimates it will cost E1.5 billion to build the pipeline.
The TAP project, in its development phase, is supported by the European Union (EU) as a priority project under its Trans-European Energy Networks guidelines, as it contributes to the EU’s objectives and policies aimed at diversification and security of gas supply.