Switzerland’s EGL presented last week at the ‘Energy & Development” Conference its plans for the construction of a natural gas pipeline from Thessaloniki to Italy’s port of Brindezi through Albania.
The new pipeline named as Tap –Trans-Adriatic Pipeline –is designed to cover the increasing natural gas needs of Italy which are seen at 110 BCM per annum in 2015 from 70 BCM currently.
EGL is active in Italy through its subsidiary EGL Italy, which is building six combined cycle plants of 3.250 MW installed capacity. These plants alone are estimated to require 5 BCMs of gas per year.
The length of the pipeline is 550 klm while the diameter is 36 inches. The cost of the project is estimated at EUR650 million. The study for the project is expected to be completed by the end of next year and the construction is seen commencing in the first quarter of 2008.
EGL said that it aims to complete the necessary licensing of the project from the governments of Greece, Albania, Italy in the coming months.
The project has the blessings of the European Union which finances it as a TEN-E Priority Project.
A encouraging omen for the good commercial future of the pipeline is the fact that EGL has already secured contracts for adequate quantities of natural gas from Russia, Azerbaijan and Iran.
The larger part of the cost will be covered from EGL’s assets and through banks’ project finance capital.
Still, the company would welcome a co-financing by Greek or Italian companies aiming at a more balanced ownership basis.