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TAP welcomes EUâ€™s recognition of Southern Gas Corridor as a key priority

18 November 2010 13:22 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. The European Commission today adopted the Communication on "Energy infrastructure priorities for 2020 and beyond" which identifies key energy infrastructure priorities designed to enable an integrated European energy network.

TAP is pleased to see the recognition of gas in the Communication as a highly important part of the future EU energy mix, which can also contribute significantly towards the aggressive European climate change objectives.

The Trans Adriatic Pipeline (TAP) welcomes the EUâ€™s recognition of the Southern Gas Corridor as a key priority for helping diversify and secure Europeâ€™s future gas energy supply.

The Communication puts emphasis on the role of the EU and governments in facilitating new gas infrastructure through simpler and faster permitting procedures, as well as through new incentives for investors, and new financing mechanisms. While TAP very much welcomes all these important steps, TAP would stress the important role of commercial decision-makers and the market place. Any public incentives need to be based on full transparency, and build on the principle of cost-effectiveness.

Kjetil Tungland, Managing Director, TAP, said: "TAP is pleased with the political direction in todayâ€™s Communication, and the recognition of TAP as one of the viable options for bringing additional volumes of gas to the European market and creating increased diversity to Europeâ€™s gas supply. TAP is now looking forward to the next concrete steps, and expects that the EU and the relevant member states will ensure that the competition among alternative projects can be carried out on transparent and equal terms on a level playing field. The right solution must deliver gas quickly, cost effectively and securely, and TAP is well placed to offer all of these advantages."

The Trans Adriatic Pipeline is a natural gas pipeline project supported by shareholders Statoil, EGL and E.ON Ruhrgas. It will deliver gas from the Caspian region to Europe via Greece, Albania, and Italy. TAP requires no public grants or subsidies, and is the shortest â€“ at 520 kilometres â€“ and most commercially viable of the pipeline options designed to secure the future of Europeâ€™s energy supply. It additionally contains considerable benefits that will help improve the security of supply, including a proposed underground storage option in Albania and the possibility of reverse flow which could be initiated in the event of an emergency.