National Iran Gas Export Company (NIGEC) has signed a long-term supply contract with Swiss energy group EGL for 5.5 bcm/per year of gas for 25 years. Although the agreement was concluded at the end of last year it was publicly announced during EGL’s presentation of its half years earnings and future activities reported in June.
Gas deliveries will begin once the proposed Trans Adriatic Pipeline project (TAP) is operational, which is thought to be at the end of 2010 or beginning of 2011.
The 513-kilometre pipeline will run from western Greece, through Albania to Brindisi in Italy with a 117-kilometre offshore section in the Adriatic Sea.
Part of the gas will be used to supply EGL’s gas-fired combined cycle power plants in Italy, while part will be used for onward supplies to Western Europe. Feasibility studies were concluded last March and the project is currently in the detailed engineering phase. A construction decision is expected during the second quarter of 2008. “We are closing the gap in the existing pipeline network, with existing pipelines from Iran and through Turkey,” said EGL.
“The pipeline will eventually be built together with partners-we are currently in negotiations and more details of this will be communicated in the summer, ” it added.