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EU & WBs / Albania Energy Investment Updates

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main activities briefly consists in build-up collaborations and supports to market players in study researches such as the certificate reports, articles and periodicals. The transfer of high expertise through building-up institutional capacities by national and regional training courses, seminars and conferences. The institutional representation and integration within framework of the forum of Albanian School of Regulation.

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SOCAR’s buying stake in DESFA runs smoothly – Greek minister 1 OCTOBER 2015

AEI Updates September 2015 Posted on Thu, October 01, 2015 23:45:31

Baku, Azerbaijan, Oct. 1

By Maksim Tsurkov – Trend:

The process of acquisition of a 66 percent stake in the Greek DESFA gas operator by SOCAR (State Oil Company of Azerbaijan) runs smoothly, Greek Productive Reconstruction, Energy and Environment Minister Panos Skourletis said, the Greek media reported Oct.1.

Skourletis made the remarks at a meeting with Azerbaijani Ambassador to Greece Rahman Mustafayev, Adviser to the SOCAR President Murad Heydarov and head of SOCAR Energy Greece Anar Mammadov.

Skourletis went on to add that one should expect the concrete results on the sale of DESFA’s stake to SOCAR in the coming months.

“This process is developing in a way which would meet the requirements of the European Commission’s Directorate-General, and it runs smoothly,” said Skourletis.

In addition, the sides discussed the implementation of the TAP pipeline project during the meeting.

The Greek minister told at the meeting about the overall progress achieved during discussions with the TAP representatives on resolving the issue regarding the gas pipeline route on the Greek territory.

Earlier, SOCAR President Rovnag Abdullayev said that SOCAR is ready for talks with European companies on selling the 16-percent share in Greek DESFA gas transmission system operator.

SOCAR won a tender in December 2013 on the sale of 66-percent share in DESFA for 400 million euros.

The European Commission started an inquiry into the compliance of the deal on acquisition of a stake in DESFA with the EU’s regulations In November 2014. Currently, the deal is being considered by European Commission’s Directorate-General for Competition, and the procedure will last until late 2015.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries and filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. The company is the co-owner of the largest Turkish petrochemical complex, Petkim, and other assets in Turkey.

The company is currently carrying out work as part of ensuring the Azerbaijani gas supplies to Europe. Work is underway in this regard within the second stage of development of the Shah Deniz offshore gas and condensate field, and for expansion of the South Caucasus Pipeline.

Moreover, projects are being developed for construction of the Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).

TAP will transport natural gas from the giant ‘Shah Deniz 2’ field in Azerbaijan to Europe.

The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

The pipeline’s construction is expected to start in 2016.

TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

Decreasing oil prices not to affect SGC project realization 29 SEPTEMBER 2015

AEI Updates September 2015 Posted on Thu, October 01, 2015 17:00:37

By Aynur Karimova

Decreasing oil prices have affected the participants of the Southern Gas Corridor project, but it will not affect the implementation of this project.

This was announced by Michael Hilmer, the Vice President of the E.ON Global Commodities, at Azerbaijan and the Caspian: Oil and Gas Week – 2015 conference, in Baku on September 29.

He said that choosing the Trans-Adriatic Pipeline project for the supply of Azerbaijani gas to Europe and adoption of the final investment decision on the Shah Deniz-2 project was “a prompt decision”.

“This decision has accelerated works on the transportation of Azerbaijani gas to Europe. The current progress of the works makes it possible to say that everything is on the right track,” Hilmer noted.

The Southern Gas Corridor, aimed at diversifying energy supply to enhance Europe’s energy security, will connect the Trans-Anatolian and Trans-Adriatic pipelines.

At the initial stage, the gas, which will be produced as part of the second stage of development in Azerbaijan’s giant Shah Deniz field, will stand as the primary source for the Baku-initiated energy corridor.

As part of Stage 2 of Shah Deniz field’s development, gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of both the TANAP and TAP.

TAP is meant to transport gas from the Caspian region via Greece, Albania and the Adriatic Sea to southern Italy and further to Western Europe. The pipeline’s total length is about 870 kilometers.

The construction of the pipeline is expected to start in 2016. TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

The construction of TAP will not only provide European countries with Azerbaijani gas, but also pave the way for establishing a significant gas pipeline and infrastructure network in the region.

Azerbaijan, reliable EU partner in energy sector

In her remarks, Malena Mard, the head of the EU delegation to Azerbaijan, said that Azerbaijan is a reliable partner of the EU in the energy sector.

“EU and Azerbaijan have broad, diversified relations. And we have strategic partnership in energy,” she noted.

“The Southern Gas Corridor is our key common project,” Mard said, adding that the implementation of this project is extremely important for the EU.

Mard also noted that the scaling up the Southern Gas Corridor is another important issue for the EU.

She mentioned the declaration on the development of cooperation in the field of energy among Azerbaijan, Turkmenistan, Turkey and EU, which was signed in Ashgabat a few months ago and added that the EU is ready for the multilateral consultations on the Trans Caspian gas pipeline.

She said that the EU is now concentrated on the first phase of the Southern Gas Corridor. “But we have never hidden from anyone that we are interested in possible larger volumes. One possibility is that those larger volumes can even come from Azerbaijan.”

“Right now we are following very closely that the Southern Gas Corridor will be indeed implemented,” she said. “This is the largest energy project in the world right now. And we hope to see the first gas come to Europe in 2020.”