TAP the European Leg of the Southern Gas Corridor Michael - - PowerPoint PPT Presentation

TAP – the European Leg of the Southern Gas Corridor

Michael Hoffmann, TAP External Affairs Director Hong-Kong – Albania Trade & Investment Forum Hong-Kong, 27 October 2015

Natural gas reserves in trillion cubic metres

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• Investment of approx. USD 45 bln
• Crossing six countries – 3,500 km

BP World Energy Statistical Review 2014

TAP in Albania – At a Glance

• Access roads: ~ 100 km (new and upgraded)
• Bridges: 40 refurbished and 3 new built
• 8,000 plots of land
• 8 block valve stations (BVS)
• Crossing 570 roads, 440 rivers & railway (major & minor

crossings)

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TAP’s shareholders

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Supported by major energy companies

SOCAR (20%) BP (20%) Statoil (20%) Fluxys (19%) Enagás (16%) Axpo (5%)

TAP – the European Leg of the Southern Gas Corridor

• 1. Pre-Selection Phase

TAP – the European Leg of the Southern Gas Corridor 5

Pipeline construction

2013 2014 2015 2016 2017 2018 2019

Q2 2013 TAP selected by the Shah Deniz Consortium

• TAP designated Project of National Importance,

December 2012

• Intergovernmental Agreement (IGA) on TAP between

Albania, Italy and Greece, February 2013

• Host Government Agreement (HGA), April 2013
• TAP’s Environmental, Social and Impact Assessment

(ESIA) approved, April 2013

• Memorandum of Understanding (MoU) for support of

TAP & IAP, May 2013

• 2. Development Phase

TAP – the European Leg of the Southern Gas Corridor 6

Pipeline construction

2013 2014 2015 2016 2017 2018 2019

Q2 2015 TAP begins pre-construction work in Albania

• Albanian authorities provided full support for:
• Updating cadastre data
• Land Easement and Acquisition (LEA) activities
• Permitting and approval process
• Local communities favorable towards TAP

• 3. Execution Phase

TAP – the European Leg of the Southern Gas Corridor 7

Pipeline construction

2013 2014 2015 2016 2017 2018 2019

First gas | TAP starts operations 2020

“TAP aims to safely deliver Caspian gas to Europe by 2020.” Ian Bradshaw, TAP Managing Director

Legal & Investment Framework

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• EU Accession Status
• Contracting Party to the Energy Community
• 3rd Energy Package compliant
• Energy Charter Treaty signatory

Cooperation with ERE, the national regulatory authority of Albania Third Party Access (TPA) Exemption  2013 – Approval of TAP’s application  2015 – Prolongation of the validity period of TAP’s TPA exemption Independent Transmission Operator (ITO) Certification

Benefits & Opportunities

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Construction

Direct benefits Sourcing locally Induced benefits

Operations

Direct benefits Induced benefits Taxes Gas exit capacities

TAP – the European Leg of the Southern Gas Corridor

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Thank you www.tap-ag.com

Facilitating Connections to Several European Markets

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Annex Slides

TAP's key features

• Designed to expand from 10 to 20 bcm/a (plus)
• 878 km in length (105 km offshore)
• 48” onshore, 36” offshore

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Aligned with EU’s energy policy objectives

Annex Slides