Azernews.Az

By Aynur Jafarova

The Albanian National Territorial Council chaired by Prime Minister Edi Rama has approved the Compound Development Permit (CDC) Phase 1 for the Trans Adriatic Project (TAP).

CDC Phase 1 is one of the most important permits granted to TAP AG by the Albanian authorities. It represents the permit which will authorize TAP AG to start its construction activities in Albania, TAP said on April 8.

The CDP Phase 1 is approved by the National Territorial Council, the highest authority in the country for territorial planning, and follows the provisions of the Law on Territorial Planning, and the decision of the National Territorial Council for the approval of the National Sectorial Plan for TAP project on July 4, 2013.

This permit for the entire TAP pipeline system will be followed by the second phase, during which the Compound Development Permit by the Ministry of Energy and Industry will be issued on an incremental basis for different sections and phases of the TAP pipeline system development in Albania.

The construction activities will start with the upgrade and construction of access roads and bridges in Albania in 2015 and this will be followed by the pipeline laying and construction of other facilities associated with this gas transportation infrastructure.

Shkelqim Bozgo, Country Manager of TAP Albania, believes this permit clears the way for the start of the construction activity for TAP in Albania.

"Today's meeting represents another major milestone in the excellent cooperation between the Albanian government and the TAP project and we look forward to working jointly in the future to make TAP a success," he said.

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 the European markets.

The Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe in late June. Another pipeline which was vying for Azerbaijan's gas transportation to Europe was Nabucco West.

With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately a year later.

TAP's shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent) and Axpo (5 percent).

The selection of TAP marked the start of implementing the Southern Gas Corridor project that will allow Europe to diversify its supply sources and increase energy security, and enable Azerbaijan to acquire a new market-Europe.

TAP will be one of the largest foreign investments in Albania with a cost of construction of around 1 billion euros. During construction of the pipeline, TAP will bring employment to the country. TAP will also support Albania in developing its domestic gas market and connections to regional gas networks.