Ian Bradshaw: 'TAP expects to secure funding from a number of multilateral institutions'

Baku. 16 May. REPORT.AZ/Trans Adriatic Pipeline (TAP) expects to secure funding from a number of multilateral institutions, such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) and Export Credit Guarantee Agencies.

Report informs citing Anadolu Agency, Ian Bradshaw, TAP's managing director said.

According to him, TAP’s financing is foreseen to include commercial lenders.

'With regards to the evolution of the oil and gas price, this leads us all to look at costs across our operations and with our contractors and sub-contractors. TAP is no different, we will continue to ensure we execute the TAP project with exemplary cost control,' Bradshaw emphasized.

TAP's managing director stated that TAP is part of the 45 billion USD Southern Gas Corridor value chain and is progressing according to schedule. I.Bradshaw added that TAP’s development is fully aligned with the 'Shahdeniz II' development schedule. He mentioned that the 'Shahdeniz' Consortium plans first gas deliveries to Georgia and Turkey in 2018, and first deliveries to Europe will follow in 2020'.

Consortium Head said that TAP project cost will be revealed once all major contracts are in place: 'While the vast majority of TAP’s strategic procurement contracts have now been awarded, a few final tenders - namely SCADA and Fibre Optic Cable - are still in progress of being awarded', Ian Bradshaw said.

He also spoke about the groundbreaking ceremony, to be held tomorrow and said that the ceremony in Thessaloniki, Greece on May 17, will be a way of saying 'thank you' to all those who have made it possible.

'Large infrastructure projects such as TAP require international collaboration, political will. The construction inauguration ceremony celebrates the realization of our collective efforts', he said.

Notably, TAP, which is part of Southern Gas Corridor project, will transport the gas produced within 'Shahdeniz II' project, to Europe. This pipeline will join TANAP (Trans Anatolian) pipeline in Kipoi territory on Greece-Turkey border and cross Greece, Albania and the Adriatic Sea before going onshore in southern Italy. First Azerbaijani gas from 'Shahdeniz' field is planned to be delivered to Europe in 2020.

After reviewing various selection options during two years, on June 28, 2013, 'Shahdeniz' Consortium has officially declared selection of the project on TAP project. The pipeline will be 878 kilometers long, which 545 km will cover Greece, 215 Albania, 105 Adriatic Sea and 8 km Southern Italy. Highest point of the pipeline will be in the mountains of Albania (1 800 meters), the lower part (-820 meters) to the bottom of the sea.

In the first stage, 10 billion cubic meters of natural gas will be delivered to Europe via the pipeline. BP (20%),SOCAR (20%), 'Snam S.p.A.' (20%), 'Fluxys' (19%), 'Enagas' (16%) and 'Axpo' (5%) companies act as TAP shareholders.