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TAP Managing Director: â€œThe South Eastern Europe market will register a rise in energy demand in the near future.â€

27 October 2011 15:59 (UTC +04:00)

Baku. Ali Ahmedov - APA-ECONOMICS. The Trans Adriatic Pipeline today hosted the first South Eastern Europe Gas Forum in Brussels, focussing on the potential growth and demand for gas in the region. Opening the conference, Kjetil Tungland, TAP Managing Director said: â€œMany countries in South Eastern Europe are keen to secure supplies of gas in to the region from the Shah Deniz Phase II development and other potential Caspian sources. TAP is the only pipeline which can fulfil this vision in a cost-effective, technically reliable and commercial way. In order to turn this vision into reality, it is important that the Shah Deniz consortium makes the appropriate decision soon. Once TAP is realised, then the connections to the South Eastern European markets - through the Ionian Adriatic Pipeline and other systems - can be implemented quickly.â€

Stimulated by solid economic growth â€“ around 2 to 5% increase of GDP a year â€“ the South Eastern Europe market will register a rise in energy demand in the near future. The collective aspiration to join the EU will also drive these countries towards a more environmentally balanced energy portfolio, making natural gas a crucial energy source.

â€œConnecting South Eastern Europe to Caspian gas supplies will diversify the regionâ€™s energy sources and contribute to the creation of a truly pan-European gas market. In the past year, TAP has taken concrete steps to bring this initiative forward, concluding agreements with the developers of the Ionian Adriatic Pipeline, Plinacro, BH-Gas and Geoplin Plinovodi, as well as with the relevant authorities in Montenegro and Albaniaâ€, Tungland added.

Addressing the conference, Jerko JeliÄ‡-Balta, President of the Board of Plinacro, the Croatian gas transmission system operator, said: â€œOf all the projects in the Southern Gas Corridor TAP is the one which has been developed to the greatest extent. This is why Plinacro is focused on the synergy between the Ionian Adriatic Pipeline and TAP. Beyond the construction of gas infrastructure and gas market development in the region, TAP and the IAP will support regional integration, bringing large political benefits for Europe as well.â€

Closing the conference, Tungland said: â€œI am delighted that TAP has taken the initiative to encourage an open and transparent debate on the opportunities available to gas buyers and suppliers in South Eastern Europe. We were also encouraged to hear that Commissioner Oettinger approves of TAP’s initiative to increase security of supply in the region and we look forward to continued dialogue on this issue.â€