Developers of Proposed Trans Adriatic Pipeline Increase Natural Gas Capacity for Greece-Turkey Border

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Developers of the proposed Trans Adriatic Pipeline (TAP) say more capacity will be added at the natural gas pipeline's entry point at the Turkey-Greece border, and additional exit points will become available along the route. The decision to add capacity is the result of a market test, according to the developers.

The 870-kilometer project could help Europe decrease its energy dependency on Russia. Natural gas would be piped from Azerbaijan's Shah Deniz II field to Italy, passing through Turkey, Greece and Albania. First deliveries to Europe are expected in 2019.

"We are pleased with the interest for capacity expressed in this Market Test," said Lutz Landwehr, commercial and finance director at TAP, in a company statement. "The results show that the Trans Adriatic Pipeline can accommodate demand for capacity in full compliance with applicable regulation."

TAP's routing could facilitate gas supply to several Southeast European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others, Landwehr said in the statement.

BP plc (NYSE:BP) (London, England); State Oil Company of Azerbaijan Republic (SOCAR) (Baku, Azerbaijan); and Statoil (Stavanger, Norway) (PINK:STOHF) are the major stakeholders in TAP, with 20% shares each. Fluxys Belgium (EBR:FLUX) holds a 16% stake, and Axpo Holding (Baden, Switzerland) holds 5%.

EU Probing SOCAR on DESFA
Meanwhile, the European Commission has launched an investigation into plans by SOCAR to acquire Greece's gas transmission network operator, amid concerns that the merger could hinder competition. Azerbaijan's SOCAR, has offered 400 million euros ($492 million) to acquire up to two-thirds of National Natural Gas System Operator S.A. (DESFA), Greece's natural gas transmission network operator. But the European Commission is concerned that the merger could "reduce competition on the upstream wholesale supply market for natural gas in Greece," it said in a statement.

The European Commission has until March 23, 2015, to decide on the way forward. Companies can make concessions if the EU's competition watchdog has concerns about the legality of a merger. The DESFA sale is part of Greece's privatization program.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.