Enagas joins TAP, Fluxys increases its stake
By Aynur Jafarova
Enagas, the Technical Manager of the Spanish Gas System and the main carrier of natural gas in the country, has joined the Trans Adriatic Pipeline (TAP) as a new shareholder with a 16-percent stake in the company.
Also, existing shareholder Fluxys has increased its stake in TAP from 16 percent to 19 percent, TAP said on September 30.
The new arrangement follows the purchase by Enagas and Fluxys of the 19 percent of TAP shares previously owned by E.ON (9 percent) and Total (10 percent).
TAP's shareholding is now comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).
"The TAP Joint Venture has always been open to new strategic partners and I am very pleased to welcome Enagas to TAP. This continues our successful joint-venture model that has brought producers, midstream players and gas buyers together to develop this important project. Enagas, as a major gas company with a long track record of important infrastructure investments in Europe and South America, will help to enhance TAP's strategic position as a truly European project that will transport a new source of gas to the continent's energy markets," Managing Director at TAP Kjetil Tungland said.
The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proven to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe.
The gas which will be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.
The Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe in late June.
Azerbaijan agreed to sell over 10 billion cubic meters of natural gas a year from the second phase of its Shah Deniz development to nine companies in the European Union in September 2013.
The contracts were signed for 25 years between SOCAR and the European utilities, including Axpo Trading AG, Bulgargaz EAD, Depa, Gas Natural Fenosa, Hera Trading Srl, Shell Energy Europe, Enel SpA, E.ON SE, and GDF Suez SA.
The initial capacity of TAP will amount to 10 billion cubic meters per annum with the possibility of expanding to 20 billion cubic meters per annum. The TAP's construction project is planned to start in 2015.