Shareholders in rival European pipeline projects the Trans-Adriatic Pipeline (TAP) and the Interconnector Turkey-Greece-Italy (ITGI) are in talks about cooperation, industry sources close to TAP said yesterday. Both pipelines aim to deliver gas to Europe from the second phase of production at Azerbaijan’s Shah Deniz gas field to cut the continent’s dependence on Russian gas.
“Shareholders have been in communication with each other, though talks are still at an early stage and nothing has been decided yet,” said one of the sources. Gas demand has plunged in the global economic crisis, and the International Energy Agency has warned that Europe’s debt crisis might push demand back to 1999 levels, raising doubt about the future of numerous European pipeline projects. TAP, which aims to carry 10 billion cubic meters of gas as well as the ITGI, which plans a capacity of between 8-13 billion cubic meters (bcm), will be competing for market share with the planned 31 bcm Nabucco and Russia’s huge South Stream pipeline project.
TAP managing director Kjetil Tungland said previously the pipeline, owned by Germany’s E.ON Ruhrgas, Norway’s Statoil and Swiss EGL, is open for cooperation with ITGI. The latter’s shareholders are Edison, Greek Public Gas Corporation DEPA and Turkish state pipeline Botas. “As you saw, E.ON joined TAP this spring and our shareholders continue to be open to new companies to join as additional shareholders,” said Tungland late on Wednesday on the sidelines of a conference. TAP is estimated to cost $1.5 billion. The ITGI has a forecast price tag of up to $3.4 billion.