Albania and Azerbaijani sign agreement for TAP

Albania and Azerbaijani have signed a memo on cooperation in the development of a master plan for Albania’s gasification. The memorandum was signed as part of the Azerbaijani delegation’s visit to Albania, which included Energy Minister Natig Aliyev, Deputy Foreign Minister Khalaf Khalafov and SOCAR head Rovnag Abdullayev, Azerbaijan’s state energy company SOCAR reported.

The members of the Azerbaijani delegation have today met with Prime Minister of Albania Edi Rama, Speaker Ilir Meta and Minister of Industry and Energy Damian Gjiknuri. Albania is one of the European countries, which will receive Azerbaijani gas within the Southern Gas Corridor. The Southern Gas Corridor will allow Europe to diversify its hydrocarbon supply sources and strengthen energy security and also will allow Azerbaijan to obtain a new market in Europe.

On December 17, 2013, a final investment decision was made on the Stage 2 of the Shah Deniz offshore gas and condensate field’s development. The gas produced at this field will first go to the European market (10 billion cubic meters). Around six billion cubic meters will be annually supplied to Turkey. The share distribution among the agreement parties (after SOCAR’s and BP’s acquisition of Statoil’s share in the project) is as follows: BP (operator) – 28.8 percent, Statoil – 15.5 percent, NICO – 10 percent, Total – 10 percent, Lukoil – 10 percent, TPAO – nine percent, and SOCAR – 16.7 percent.

Earlier, Total sold its share in the project to the Turkish company TPAO, and after completion of the deal the latter’s share in the project will be 19 percent. The Norwegian Statoil sold a 15.5 percent share in the project to the Malaysian company Petronas. The deal for purchase and sale of shares is not yet complete.

As part of the second stage of the field development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.

News source/photo credits: ATA