The Ministry of Finances has officially begun its preliminary negotiations over the proposed Trans Adriatic Pipeline (TAP) that will transfer natural gas from Shah Deniz gas field of Azerbaijan to the European market via the Southern Energy Corridor.
The Minister of Finances Giannis Stournaras has begun negotiations with representatives from BP and Azerbaijan, as well as investors from Switzerland, Norway and Germany.
The total project is estimated to cost about 50 billion euros, with a significant portion of the pipeline coming through Greece. The Prime Minister Antonis Samaras considers the project to be paramount, as indicated by his stop for discussions in Azerbaijan after his recent trip to China.
According to industry estimations, the TAP project is much more “mature” from a commercial and technical standpoint, compared to the competing Nabucco West project, since it will cross fewer countries and is projected to costs less. Furthermore, the joint venture behind TAP is characterized by its flexibility and great economic power.
The Shah Deniz joint venture, which is headed by BP and Socar, will decide between the TAP and Nabucco West proposals at some point in June
