The Trans Adriatic Pipeline announced that TAP and its existing shareholders EGL, Statoil and E.ON Ruhrgas have reached an agreement with members of the Shah Deniz Consortium to secure funding for the TAP project.

These funds will contribute towards continued work in several important areas during the period running up to the final routing decision, expected in 2013.

The agreement also includes an option for the Shah Deniz shareholders to take up to 50% equity in TAP.

EGL, Statoil and E.ON Ruhrgas welcome this endorsement of TAP and anticipate successful cooperation in delivering the pipeline project.

Kjetil Tungland, TAP’s Managing Director, said: “The signing of this agreement is a significant vote of confidence in the quality of TAP’s technical and commercial solutions from key industry players, and underpins the Cooperation Agreement that was signed between TAP and Shah Deniz in June.

“Our cooperation with Shah Deniz is now even closer and more far-reaching than before. This agreement will strengthen our continued working relationship in the run-up to the final routing decision. We remain confident of a positive outcome.”

TAP will transport natural gas from the giant Shah Deniz II development in Azerbaijan, shipping it via Greece and Albania, across the Adriatic Sea to Southern Italy, and further into Western Europe. Designed to expand transportation capacity from 10 to 20 bcm per year, depending on supply and demand, TAP will open up the so-called Southern Gas Corridor, enhancing Europe’s energy security by contributing to the diversification of the region’s gas supplies.

Press Release, August 09, 2012