TAP and Greece start talks on Host Government Agreement
The Trans Adriatic Pipeline (TAP) and the Greek government formally initiated the process to conclude the Host Government Agreement that will govern the group's investment, Trend news agency reported referring to TAP.
"At 1.5 billion Euros, this is expected to be the single largest current Foreign Direct Investment (FDI) in Greece," TAP's report said.
TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. Gas to be produced within the second phase of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for TAP.
TAP's initial pipeline capacity will be 10 billion cubic metres per year, but is easily expandable to 20 billion cubic metres per year. TAP's shareholders are AXPO of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).
The Shah Deniz consortium will make its final decision on a pipeline route in 2013.