TAP Secures Shah Deniz Funding

In a significant development in the evolution of the Southern Gas Corridor, the Trans-Adriatic Pipeline (TAP) has today signed an agreement with the consortium behind the Shah Deniz gas field to secure funding for the pipeline.

TAP, which numbers Statoil, E.ON Ruhrgas and EGL as shareholders, says that the funding will be used to continue work in "several important areas," up to the final routing decision to be decided for the pipeline in 2013.

Managing Director of the TAP consortium, Kjetil Tungland, said the agreement increased the consortium's confidence even further that TAP would be the successful pipeline in the bid to transport Shah Deniz gas.

"The signing of this agreement is a significant vote of confidence in the quality of TAP’s technical and commercial solutions from key industry players, and underpins the Cooperation Agreement that was signed between TAP and Shah Deniz in June," he said.

"Our cooperation with Shah Deniz is now even closer and more far-reaching than before. This agreement will strengthen our continued working relationship in the run-up to the final routing decision. We remain confident of a positive outcome."

As part of the agreement, the Shah Deniz consortium, which is operated by BP, will have the option to take a 50 per cent equity stake in TAP. The TAP consortium did not reveal an exact amount of funding that would be taken.