TAP gas pipeline to go ahead despite low oil prices - executive
22/03/2016 18:41
By Angeliki Koutantou
ATHENS, March 22 (Reuters) - Construction of the
Trans-Adriatic Pipeline (TAP) to take gas from Azerbaijan to
Europe will go ahead despite low oil prices, but costs will be
in sharp focus, a senior executive for TAP said on Tuesday.
The 870-km (540-mile) pipeline, which will link Azerbaijan's
Shah Deniz II field with Italy, crossing through Georgia,
Turkey, Greece, Albania and the Adriatic Sea, is the largest
project to bring new supplies to European consumers.
urn:newsml:reuters.com:*:nL8N16B3TF
Asked about the impact of plunging oil prices on the
project, TAP's country manager for Greece, Rikard Scoufias, told
an energy conference in Athens: "The project will not have an
impact in terms of challenging the realisation of TAP in any
way."
"The financial investment decision has already been taken,"
he said. "But it does put an additional emphasis on cost
management."
Global oversupply knocked crude prices from mid-2014 highs
above $100 a barrel to 12-year lows earlier this year.
Scoufias told Reuters pipeline construction work is expected
to begin in the middle of the year.
"I cannot be specific on a date but the middle of the year
is now where we plan to start construction," he said.
Around 10 billion cubic metres (bcm) per year of Azeri gas
should reach Europe by 2020 at the latest through TAP as well as
the South Caucasus Pipeline through Georgia and the
Trans-Anatolian Pipeline (TANAP) through Turkey.
Greece is struggling through an economic crisis and record
high unemployment. Unlike other foreign investments, its
leftist-led government has been supportive of TAP, which along
with another natural gas pipeline scheme, the Interconnector
Greece-Bulgaria (IGB), is seen turning the country into an
energy hub in southern Europe.
Scoufias said despite business risks, TAP remains committed
to the multi-billion euro project, which will create an
estimated 2,000 direct and 8,000 indirect jobs in Greece,
according to independent studies.
"Our view has not changed. We have a commitment to investing
in Greece," he said. "It's not only doom and gloom. There are
actually investors who are looking in Greece and our partnership
with the Hellenic Republic has been very constructive."
Two Greek construction firms, Ellaktor HELr.AT and J&P
Avax AVAr.AT - in separate joint ventures with a French and
Italian company - have signed contracts to build the Greek part
of the pipeline. urn:newsml:reuters.com:*:nL5N16E0J3
TAP is owned by BP BP.L , Azeri state energy firm SOCAR,
Snam SRG.MI , Belgian company Fluxys FLUX.BR , Spain's Enagas
ENAG.MC and Axpo AXPOH.UL .
(Reporting by Angeliki Koutantou; editing by Susan Thomas)
((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))
Keywords: EUROZONE GREECE/GAS