TAP Requires Second Gas Supplier to be Expanded- Azeri Official
Amid speculations about Iran, Russia, Turkmenistan and even Iraqi gas flowing via the Trans Adriatic Pipeline (TAP), Azerbaijan says it will fulfill its own commitments for realization of the project.
TAP is a part of Southern Corridor Pipeline, aimed to transit Caspian Sea littoral gas reserves to Europe. TAP's initial capacity of 10 billion cubic metres (bcm) of gas per year is equivalent to the energy consumption of approximately seven million households in Europe, is expected to be supplied by Azerbaijan by 2020. The future addition of two extra compressor stations will double the supplement amount to more than 20 bcm.
The Vice President of The State Oil Company of Azerbaijan Republic (SOCAR) for Investments and Marketing Elshad Nasirov told Natural Gas Europe that there is no problem in delivering the first 10 bcm/a of Azeri gas to TAP, however, European Union’s Third Energy Package put restrictions on doubling gas delivery to TAP by Azerbaijan.
“Then, there is needed the second gas supplier to join this project for meeting this project to the EU’s laws," added Nasirov.
The Third Energy Package outlines a set of rules regulating the European gas and electricity market and aims at increasing competition on the energy market, allowing other players to join the sector and liberalizing energy prices.
Nasirov said that Azerbaijan is fulfilling its own obligations completely in all spheres like managing, organizing, financial and legal commitments. He confirmed that the European part of Southern Corridor Pipeline (i.e. TAP) has faced obstacles, but did not provide a detailed explanation.
However, Greece has previously indicated that it eyes a new arrangement with TAP.
The SOCAR vice president added that in the initial gas supplement to TAP upto 10 bcm/annum can be commenced without any restrictions from the Third Energy Package, but for expanding this project in future, the addition of another gas supplier besides Azerbaijan is inevitable.
Ilham Shaban is Director of the Azerbaijan Centre for Oil Studies, in Baku