Greece Turns To US For LNG

Πηγή: Natural Gas Europe
27 Oct 2015

The ever changing dynamic in the Southeast European natural gas sector is seeing a shift in strategy by the Greek government, which is pressing hard for the introduction of prospective supplies of US LNG moving into Europe, via the Balkans. Following on this initiative, the Bulgaria government is also stepping closer to establish a mini-diversification route in the Balkans.

The Bulgarian government is proceeding in the upgrade of its underground gas storage facility in Chiren, aiming to enlarge capacity by 20% in the coming two years. In a recent meeting in Brussels, Bulgarian energy minister Temenuzhka Petrova, relayed the aim to diversify its gas imports via establishing in full interconnectivity with Serbia, Romania and Greece facilitated by the Interconnector Greece Bulgaria (IGB).

US diplomacy is engaging with its Greek counterparts to further Bulgaria's diversification efforts.Victoria Nuland, the US Assistant Secretary of State for European and Eurasian Affairs, visited Athens and met with the Greek Prime Minister to discuss the diversification project in advance of a visit to Athens by the Secretary of State John Kerry in mid-November 2015.

The evolving scenario will see a new floating LNG reception, storage and regasification unit built in the Alexandroupolis region close to the borders with Bulgaria, a project facilitated by the GasTrade Company belonging to Copelouzos group, an entity, in an interesting twist of interconnections between big powers, with close ties with Gazprom.

GasTrade, together with the Greek DEPA Company and the US based Cheniere, will establish a mutual holding corporation that will manage the installation and import of LNG sourced from US shale gas. Once gas reaches Greece, it will be gasified, transferred within the Greek internal transmission system and then exported to Bulgaria via IGB route. The final aim of the project is to create a gas trading hub via the future introduction of additional alternative gas sources from Central Asia or from the Eastern Mediterranean.

Greek foreign minister Nikos Kotzias met with his Bulgaria counterpart Daniel Mitov and then relayed to the press that the US gas is the cheapest in the world and that it made financial sense to bring it into the Balkans. The Bulgaria politician was more reserved, but expressed his point of view which is for a swift introduction of the IGB and closer ties between Sofia and Athens.

Nevertheless what it should be noted is that LNG imported from US even with current low price would be significantly higher than gas imported via pipelines from Russia. There is also the fact the Greek plan may potential affect the pricing strategy of the Southern Corridor partners regarding the flow of Azeri gas via the Trans-Adriatic pipeline (TAP).

In short there is a new change of policy from Greece which sees US LNG as the best bet to shore up Athens's position as preferred gas hub in the region. A similar position is being argued by Croatia via its Krk LNG terminal, pointing out that it would be located closer to larger EU markets such as Austria, Hungary and even Poland.

The question remains whether private investors will be able to raise funding for the development of a new LNG terminal. However, expect more twists and turns from the Greek Administration in the "gas hub" race with Croatia, Turkey and potentially from Egypt.

TAP Awards First Major Contract | For Construction of Access Roads and Bridges in Albania

Πηγή: TAP
April 14 2015

Tirana, Albania. Trans Adriatic Pipeline AG (TAP) has selected a joint venture formed by Gener 2 Sh.p.K and Sicilsaldo S.p.A. for the construction and rehabilitation of access roads and bridges in Albania. The decision concludes TAP’s pre-qualification process (launched in April 2014), followed by bid assessments from the shortlisted companies that met TAP’s rigorous pre-qualification criteria. The building of Albanian access roads and bridges is a crucial step in TAP’s preparations for pipeline construction, to begin in 2016.

The scope of work for the contract covers:
Construction and rehabilitation of over 100 kilometres of road along the pipeline’s route: in Vishocice, Trestenik, Vithkuq and Shtyllas in the Korca region, Corovode, Kakruke as well as in the surroundings of Potom in the Berati region and Seman and Topoje in the Fier region.
Construction of two new bridges and rehabilitation of approximately 50 existing bridges in the regions of Korce, Berat and Fier.

Works are expected to begin in the second quarter of 2015.

Leading the joint venture is Gener 2 Sh.p.K, an Albanian construction and development company with almost 20 years of relevant experience. The company has executed numerous projects, including engineering and design, management, coordination, and supervision of various privately owned and government funded construction and development activities.

Sicilsaldo S.p.A. is an Italian company specialised in engineering, procurement and construction services in the oil and gas as well as in the power sector. The services they provide range from design and construction to maintenance of plant and pipelines.

Ian Bradshaw, Managing Director of TAP, commented: “Today’s announcement is an important step for TAP’s execution phase, as it will allow for pipe-laying to begin in 2016. I want to express our gratitude to all those who participated in this process and congratulate the winning joint venture company on their success.”

Bradshaw added that “I would also like to reinforce that TAP remains committed to acting as a responsible corporate citizen. In addition to our community investment programme in Albania, the access roads and bridges will be left behind for the benefit of the local communities for decades to come."

For further information on TAP’s procurement process and the contracts that it plans to award, please go to: http://www.tap-ag.com/project-opportunities/for-companies

If you are a subcontractor and are interested in working for one of the companies that TAP selects for its contracts, please go to http://www.tap-ag.com/project-opportunities/for-companies/interested-in-working-as-subcontractor to register your details, which will be passed on to companies invited to tender in TAP’s procurement process.

About the Trans Adriatic Pipeline (TAP)

TAP will transport natural gas from the giant Shah Deniz II 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.

TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.

TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on grants or subsidies. 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%), SOCAR (20%), Statoil (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

TAP English 070414 from Trans Adriatic Pipeline on Vimeo.

South Stream ‘Plan B’ opts for route through Greece and Turkey

Πηγή: EurActiv
Aug 19 2014

A Russian newspaper has published an article suggesting that the Kremlin-favoured South Stream gas pipeline could drop Bulgaria, Serbia, Hungary, and Slovenia for its route, and instead reach its final destinations, Italy and Austria, through Turkey and Greece.

On Monday (18 August), Russian business newspaper Vzglyad published an article by journalist Oleg Makarenko, claiming that Gazprom has a “plan B” in case Bulgaria continues to obstruct the construction of the South Stream pipeline.

A caretaker government in Sofia, which took office on 6 August, has frozen the construction of South Stream, following clear indications from Brussels that the EU executive would impose infringements on Bulgaria, unless the country re-negotiates its bilateral agreement with Russia for the construction of the pipeline, which is in breach of EU law.

>> Read: Barroso warns Bulgaria on South Stream

According to the Vzglyad article, Russian President Vladimir Putin has already hinted at another route for South Stream, during his meeting with leaders of world media, on 24 May.

The article quotes Turkish energy Minister Taner Yıldız as saying that Ankara would allow South Stream to reach Turkey under the Black Sea instead of Bulgaria, as originally planned.

However, Russian sources are quoted as saying that the Turkish route is not Moscow’s preferred one, as it is longer, and because of the lost possibility of reaching Serbia and Hungary.

‘Good partners’

Turkey is seen as a “good partner” for Russia, as Prime Minister Recep Tayyip Erdoğan is described as a “cynical pragmatist” who wants revenge on the USA, which has reportedly tried to oust him twice. Greece is described as a country where social unrest is boiling. “The attempts to leave Greece without money, without agriculture [as a result of the Russian counter-sanctions] and without gas will trigger massive social unrest,” the article says.

Bulgaria, Serbia, Hungary and Romania are described as the biggest victims of plan B. In the event that the Ukrainian gas transmission system is “blocked permanently”, Russia would reportedly not be able to supply any gas to these countries.

The article ends by saying that Russia would prefer not to opt for a plan B, but if the Commission doesn’t stop pressuring Bulgaria to freeze the construction of the pipeline, this alternative appears to be a viable option.

“We have to be very happy that Russia has a working spare plan to supply gas to Southern and Central Europe,” the article concludes.

A direct competitor to TAP?

If Gazprom decides to choose Turkey and Greece for the South Stream route, the pipeline project would largely resemble the TANAP-TAP project to bring Azeri gas to Italy through the territories of the same countries.

The Trans-Anatolian gas pipeline (TANAP) is a proposed natural gas pipeline from Azerbaijan running through Turkey. The approximately 870 km long TAP pipeline connects with TANAP, and will cross Greece and Albania before reaching Italy through an offshore section. It is to be built by a consortium led by BP, Norway's Statoil and Azerbaijan's SOCAR.

TAP is in an advanced stage of preparation and the start of its construction is planned in 2016.

Asked by EurActiv to comment, the European Commission said it was unable to confirm reports that NGOs were funded with Russian money, in order to delay the TAP project.

Greece stresses its role as EU’s energy hub

Πηγή: EurActiv
Jan 13 2014

Greece, holding the rotating presidency of the EU until June, said it would promote the enhancement of energy security in the 28-country bloc and fully support the European Commission’s approach to Russian energy giant Gazprom.

Speaking to the press in Athens last week, the Greek minister for energy, Yiannis Maniatis, said the first pillar for European energy security was the support of initiatives to diversify gas supply, including gas from the Caspian Sea and the gradual implementation of the Southern Corridor.

According to the minister, “interconnectors” for big pipelines were key contributor to Europe's energy security.

The Trans Adriatic Pipeline AG (TAP) and the Interconnector Greece-Bulgaria (ICGB) recently signed an agreement laying the foundations for linking the two projects and thus bringing gas from Azerbaijan to Bulgaria, a country which depends on Russia for almost 100% of its gas imports.

The two sides will work together on realising a possible interconnection point in the vicinity of Komotini, Greece. “These interconnectors are choices that objectively enforce the energy security of Europe,” Maniatis said.

The second pillar for European energy security, Maniatis said, was the recent developments in oil exploration in the eastern Mediterranean.

“I would like to highlight that the perfect cooperation between Greece, Cyprus and Israel, shapes new policies of energy supply in Europe and sends a quite hopeful message,” he noted.

The "Projects of Common Interest” (PCI) constitutes the third pillar and will be implemented with the participation of Greece, the minister said.

“This issue is a priority and is being shaped through Greece’s ambition to become an energy hub of the greater region ... we hope that the Informal Meeting of Energy Ministers will note that a new source of energy supply for Europe is being shaped,” Maniatis added.

Doubts about the future of South Stream

The European Commission said last month (4 December) that the bilateral agreements for the construction of the Gazprom-favoured South Stream gas pipeline – concluded between Russia, Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria – are all in breach of EU law and need to be renegotiated from scratch.

“We agree with the strategic plans of the European Commission, which we have supported for all these years, as it was the case with the Southern Corridor”, said the Greek deputy minister of environment, energy and climate change, Makis Papageorgiou.

But he conceded that there were conflicting signs from Gazprom’s side on the South Stream pipeline.

“As a plan, it has been around since 2007. The company has made many moves, and as you already know, Greece has signed an agreement with the Russian company. After that, Gazprom abolished the southern branch and made new agreements focusing on the northern branch.”

“It is still unclear what exactly will happen with South Stream,” he noted.

“The position of the European Commission on the issue is pretty clear: Gazprom has to make its plans clear, under what conditions it will operate in the EU,” he added.

Privatisations in energy sector

Even though debt-ridden Greece is on the recovery path, the country may need to accelerate privatisation, especially in the energy sector, namely the Hellenic Gas Transmission System Operator (DESFA) and the public Natural Gas Supply Corporation of Greece (DEPA).

The privatisation of the Hellenic Gas Transmission System Operator (DESFA) is in the process of final approval by Brussels.

“By the summer, this process will be finalised and Azeri company SOCAR will acquire 66% shares of the company while 34% will remain in the Greek state”, said Papageorgiou.

As for DEPA, the international bid was inconclusive since Gazprom pulled out, despite its initial interest.

According to the Greek deputy minister, Gazprom finally backed off as a result of EU conditions.

“Evidently, the reason for this, as stated by Russian PM Alexander Medvedev, is that the EU conditions at some point should change. As long as the conditions of the EU don’t change and Greece is a member of the EU and abides by its rules in the energy market, no more moves can be made”, the deputy minister noted.

He added that the privatisation of DEPA will happen later, as currently Greece holds discussions with the Commission about gas market reform.

BACKGROUND:

Crisis-hit Greece took over the reins of the EU Council of Ministers on Wednesday (1 January) with a record low budget of €50 million set aside as the “absolute maximum” to run the presidency during the next six months.

While analysts have predicted Greece will require more aid, albeit on a smaller scale than previous bailouts totalling about €240 billion, the troubled country has vowed to spend considerably less than other countries'
presidencies.

Greece takes the helm of the EU at a critical time, just months before the end of the current European Parliament. This means that Greece will have less than four months to deliver on complicated dossiers, rather than the full six months.

The main presidency priorities are the European Banking Union, growth and jobs, migration and a European maritime policy.

Editor's Note: At the same time Greece didn't reach an agreement with Gazprom over the natural gas price.

See (in Greek) : Δεν συμφώνησαν ΔΕΠΑ - Gazprom για το φυσικό αέριο

 

Greece: ‘Heading for turmoil in the Aegean?’

Turkey have recently received a special boat with which it will start surveying inside Cyprus’ EEZ

Recently Greece’s creditors expressed their disappointment on the issue of privatizations.

One that is pending without any visible reason is that of DEPA and DESFA the state oil and gas companies since November.

 It seems that from the 5 companies that have expressed interest and are still in the bid giving non-biding offers the two Russian are the favourites as their offers are almost the double from the second.

The state company that arranges the privatizations (TAIPED) said that it is going to accept the highest bid (without any regard on geopolitics).

But it seems that Washington as well as Brussels have a different opinion.

That is why TAIPED changed the clauses and now asks from companies that had left the bid during an earlier stage to come back and make new offers cooperating with any of the five existing ones.

On February 13th it will be signed the agreement between Greece-Italy-Albania on the TAP (Trans Adriatic Pipeline).

There will be present a delegate from Azerbaijan from where the gas will be transported to Europe and which is to decide if TAP will be built rendering Greece’s existing infrastructure useful.

Interestingly the ‘second’ company apart from the two Russian (Gazprom and Negusneft) is the Azerbaijani state oil and gas company SOCAR which is the head of the Shah Deniz joint venture.

SOCAR is said that after the change of clauses will join the two Greek consortiums comprising M&M GasCo, Mytilineos Holdings, Motor Oil Hellas Corinth Refineries and a joint bid by PPF and GEK Terna Holding Real Estate Construction. Bilateral relations with Greece with emphasis on the energy sector are dated back to 2011.

This scheme is supported by US ( U.S. ties with Azerbaijan serve to “contain” Russian and Iranian influence and diversify the European energy sector, See page 50) and the owner of Motor Oil Mr. Vardinoyannis knows personally the President of Azerbaijan Mr. Ilham Aliyev.

On early March Mr. Samaras is going to visit Washington while a trip to Moscow is reported as canceled. At the same time EU is going to decide about bailing out Cyprus (which is accusing of laundering money of the Russian mafia), Russia will decide on easing the terms of the loan it has already extended to Cyprus and Turkey have recently received a special boat with which it will start surveying inside Cyprus’ EEZ and near the Greek island Kastelorizo (inside Greece’s potential EEZ that recently the government leaked that is ready to declare).

At the same time in Athens the 54th round of exploratory talks between Greece and Turkey have started but passing unmentioned.


UPD: It is said that finally Sintez (Negusneft's affiliated company) decided to leave from the bid since its offer (1,9 million euros) was by far the highest but TAIPED hesitated to make decisions and delayed the possess.

UPD1: Sintez on Feb 7th denied that is leaving from the bid. The deadline for the final offers will be on April 12th.

Greece and TAP Finalise Deal

Πηγή: Natural Gas Europe
Dec 28 2012

Greece has entered the final stages of a binding agreement with the Trans Adriatic Pipeline (TAP) consortium.

The Host Government Agreement will regulate TAP's investment of €1.5 billion in the Greek portion of its pipeline. The amount is believed to be the largest ever Foreign Direct Investment (FDI) in Greece.

TAP is competing to deliver gas from Azerbaijan into Europe and, if selected, will put Greece firmly on the European energy map as the EU realizes its 4th major gas import corridor. The final selection of the gas transportation route is expected early in 2013 by the BP-operated Shah Deniz consortium in Azerbaijan. TAP is the only option that will go through Greece.

“The Host Government Agreement is a key step towards securing selection in 2013 of the Greek Route,” said Rikard Skoufias, TAP’s country manager for Greece, said in a statement. He commented that TAP would "bring thousands of direct and indirect job opportunities as well as strengthen Greece’s strategic role in Europe".

Greece starts review of TAP gas route

Πηγή: UPI
Dec 20 2012

The Greek government started the process of finishing a host agreement for the planned Trans-Adriatic Pipeline, the project group said.

A BP-led group working in the Azeri waters of the Caspian Sea is expected by early next year to pick between TAP and Nabucco West as a preferred route for European natural gas deliveries. TAP is the only one that would run through Greek territory.

The project group announced Athens started work on a host agreement that would govern TAP's investment there.

"At $1.9 billion, this is expected to be the single largest current Foreign Direct Investment in Greece," the group declared.

Rikard Scoufias, the pipeline's country manager for Greece, said the initiation process was another step toward realizing the potential new transit network for Europe.

"We are very pleased with our cooperation with the Greek government," he said in a statement. "This is yet another significant step towards realizing the TAP project, which is destined to bring thousands of direct and indirect job opportunities as well as strengthen Greece's strategic role in Europe."

TAP this week announced it received an extension on an environmental assessment for the project through Italian territory. Later, it said it aims to soon start collecting data to determine the best offshore route.

Shah Deniz Partners BP, SOCAR and TOTAL commit to funding for the Trans Adriatic Pipeline (TAP)

Πηγή: TAP
August 9 2012

The Trans Adriatic Pipeline announced today that TAP and its existing shareholders EGL, Statoil and E.ON Ruhrgas have reached an agreement with members of the Shah Deniz Consortium to secure funding for the TAP project. These funds will contribute towards continued work in several important areas during the period running up to the final routing decision, expected in 2013.

The agreement also includes an option for the Shah Deniz shareholders to take up to 50% equity in TAP.

EGL, Statoil and E.ON Ruhrgas welcome this endorsement of TAP and anticipate successful cooperation in delivering the pipeline project.

Kjetil Tungland, TAP’s Managing Director, said: “The signing of this agreement is a significant vote of confidence in the quality of TAP’s technical and commercial solutions from key industry players, and underpins the Cooperation Agreement that was signed between TAP and Shah Deniz in June.

“Our cooperation with Shah Deniz is now even closer and more far-reaching than before. This agreement will strengthen our continued working relationship in the run-up to the final routing decision. We remain confident of a positive outcome.”

TAP will transport natural gas from the giant Shah Deniz II development in Azerbaijan, shipping it via Greece and Albania, across the Adriatic Sea to Southern Italy, and further into Western Europe. Designed to expand transportation capacity from 10 to 20 bcm per year, depending on supply and demand, TAP will open up the so-called Southern Gas Corridor, enhancing Europe’s energy security by contributing to the diversification of the region’s gas supplies.

ENDS

###

About the Trans Adriatic Pipeline (TAP)

The Trans Adriatic Pipeline (TAP) is a natural gas pipeline project. The pipeline will transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. TAP will open a new so-called Southern Gas Corridor to Europe and establish a new market outlet for natural gas from the Caspian Sea.

The project is designed to expand transportation capacity from 10 to 20 bcm per year. TAP also envisages physical reverse flow of up to 80 per cent and the option to develop natural gas storage facilities in Albania to further ensure security of supply during any operational interruption of gas deliveries.

TAP’s shareholders are EGL of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON Ruhrgas of Germany (15%).

TAP Pushes its Plans in Greece

Πηγή: Natural Gas Europe
July 30 2012

A high level delegation representing the Trans-Adriatic Pipeline consortium met with Greek officials, including the alternate Minister for Energy Makis Papageorgiou, in order to push forward its plans for the project, which has gained a momentum after the developments of the past few months.

TAP's officials, Rikard Skoufias country manager for Greece, and Michael Hoffman, Director of External Affairs and Communications, stressed first and foremost the importance of official support for the project in order for the Southern Corridor to be realized through Greece.

In that respect they relayed their views that a tripartite declaration by the governments of Greece, Italy and Albania is needed, in order to show a solid political support. Already the latter has agreed to back up TAP, so as to be included in the Southern Corridor axis and bolster its energy security.

Moreover TAP is open to an agreement by which a Greek partner, namely DEPA would be accepted as a partner in the consortium and information was made known, that already four meetings with DEPA officials have taken place recently upon that subject.

Furthermore, TAP made a surprise announcement by stating that a Greek company "Greek pipe works S.A" has been pre-selected the estimated 500 million Euros contract for the construction of the pipeline. Should TAP is awarded the Southern Corridor route, this company which currently has a turnover of 260 million Euros (2011), would see its sales multiplying, thus boosting local industrial production.

TAP is also talking in parallel with ENEL in order to partner with it and secure Italian support. In that respect on the 15th of August the market study that will determine the market natural gas potentials in the long-term in Greece, Albania, Italy would be ready, so as to be able to then proceed into solid cooperation with individual companies such as ENEL and DEPA.

TAP officials were placed on the defensive last week follwing Azerbaijani Energy Minister Natiq Aliyev’s statement favoring the rival Nabucco West project in the contest to carry Caspian gas to Europe. Informed sources told Natural Gas Europe that the Minister's comments reflected his personal point of view and not the position of the Azeri government or of the Shah Deniz consortium.

Skoufias noted that "Competition with Nabucco West is tough and we are doing our best...by October 2012 we should expect a positive and definite answer by the Greek government". It is interesting to note that the Italian minister of development Corrado Passera has indirectly sided with TAP, by stating "Italy needs foreign direct energy investments that will be self-financed". TAP believes that Italy and Albania are on their track.

In receiving the comments, the Greek energy ministry deferred to provide definitive support.

Minister Papageorgiou told TAP's officials that any answer will come after a final decision by the Greek Prime Minister's office and after consultation with the Italian government and the EU. Moreover, the Greek side has certain terms it wants to secure, such as the inclusion of DEPA and the securing of favorable long-term gas deliveries.

What’s more important though, is that the Greek government tends to believe that actually TAP will be the winner of the Southern Corridor route, thus they want to raise the bar of their expectations for as much as possible supplies of gas, in as less as possible prices, along with a sizeable percentage for DEPA in the consortium, which some local insiders point out that it should be around 20%.

Athens is also anxious to view of the Italian decision, which has in parallel been promoting the South Stream project, another pipeline where DEPA is also involved. Lastly, DEPA is also looking to extract as many advantages as possible through its - indirect for the moment- involvement in the offshore natural gas reserves in Cyprus.

Recently the ex-President of USA, Bill Clinton paid a visit to Athens, where reliable sources indicated that Noble Energy's activities in the Eastern Mediterreanean and plans for Southeastern Europe were discussed, in light of Washington's increased interest. DEPA's officials were also consulted as the potential partners in such mid-term plans.

The main question that arises is will Greece be ready to take a definite decision by the last quarter of 2012 and if so, what will be the TAP's consortium's initiatives in order to firmly secure its position.

BP Ventures to Greece - TAP on the Table

Πηγή: Natural Gas Europe
July 16 2012

Senior BP officials involved with the Shah Deniz consortium recently travelled to Athens to meet with Greek governmental officials to discuss the prospects of the Southern Corridor and specifically, the potential role of the Trans Adriatic Pipeline in the movement of natural gas from the Azeri field.

Alasdair Cook, BP's Vice President for Shah Deniz Full Field Development (FFD) recently revealed that the company will take a "substantial" stake in the pipeline project, after it dropped plans to pursue its SEEP project.

The Shah Deniz consortium has also indicated interest in acquiring a stakeholding in TAP’s competitor, the Nabucco West pipeline, indicating that the consortium will, either way, hold an interest the winning proposal to bring gas from the Caspian Sea to Europe.

Cook and BP political adviser John Baldwin, met with Greek energy minister Makis Papageorgiou (a former chairman and chief executive of  DEPA, the natural gas supply corporation of Greece) to discuss the position of the new Greek government.

According to well-placed sources, BP is seeking a trilateral joint declaration by the governments of Greece, Italy and Albania in favor of TAP.

Mr. Cook noted in statements to the local press that BP has four distinct points to offer to Greece, should it support TAP.

Firstly, it would allow for the placement within the country the critical EU project of the Southern Corridor. Secondly, it would provide for the diversification of Greece's natural gas imports by the importation of Azeri gas. Thirdly, it would provide increased competition within the domestic gas market and fourthly, it would provide a large infrastructure investment that is sorely needed for an ailing Greek economy.

Cook noted that binding governmental support is required so as for the project's partners to be able to consider the country as a preferential territory for the pipeline.

Furthermore Cook said that BP is closely looking into the process of  DEPA's pending privatization, whose prospects would be enhanced by the import of Azeri gas. Moreover DEPA's entrance into the TAP consortium, would be welcomed.

TAP could also compliment the Greek-Bulgarian Interconnector (IGB) which is scheduled to be operational next year, a clear indication for leverage for this pipeline in light of the wider diversification criteria that the EU is seeking for Southeastern Europe.

The Greek Minister indicated a position of encouragement towards TAP, without binding Athens for the time being. The recently formed government is a coalition of three parties with diverging energy policies, and it speculated it will take some time before a joint stance is found.

BP's officials also met with Ioannis Maniatis, Secretary of the PASOK party and former Deputy Minister for the Environment, Energy and Climate. During the talks, Maniatis spoke to Greek position in detail.

Maniatis mentioned geopolitical issues to be addressed along the Southern corridor's route, the potential involvement of DEPA into the project, the details around the import of Azeri gas under long-term contracts and the pros and cons between TAP and Nabucco West relating to the supply of the Balkans.

BP's point of view was to note of the points raised and agreement was reached for further visits to Athens in order to clarify the points under which both sides can have a solid cooperation.

Although the full transcripts of both meetings with Papageorgiou and Maniatis were not released, sources from the Greek Ministry of Energy indicate that we are in the beginning of a long-process of negotiations, since the policies relating to TAP have to take into account several other important factors, such as DEPA's privatization, the role and the stance of both Italy and Russia and the specific needs of each Balkan state. Lastly the relations between Greece and Turkey are another point, that requires the consideration of the Greek side.

Shah Deniz consortium is due to take its final decision on which pipeline, TAP or Nabucco West, will transport Azeri gas to Europe, by May 2013.

EU makes concrete energy cooperation progress as Iran oil import sanctions come into force

Πηγή: DiploNews
By Shawnna Robert
July 6 2012

In the joint conclusion of the ninth Ministerial-level meeting of the energy dialogue between the European Union (EU) and the Organization of the Petroleum Exporting Countries (OPEC), the participants recognized the challenging economic developments and their implications for the global energy sector. Oil price volatilityreinforces the need for market monitoring and closer consumer-producer cooperation through energy dialogues.

The EU outlined a need to move towards a broader energy base by 2050. The EU cited tensions in global sovereign-debt markets and high oil prices as contributing to a loss of confidence towards the end of 2011 and the EU's subsequent output contraction. OPEC showed that oil demand in the world is set to grow, with much of the new demand coming from developing countries. It views policies aimed at alternative fuels, efficiency, and higher taxes as a significant demand risk. OPEC is investing in accordance with perceived demand for its crude.

Both parties agree that EU-OPEC dialogue has enabled them to remain focused on fostering market stability through constructive exchanges. Advances have been made in assessing the drivers behind oil, gas, and fuel market developments. There have been more frequent contacts between both groups. They agreed on the importance of sharing information and data covering all time frames. They also agreed to organize an international round table on offshore safety in November, a study assessing potential human resource demand bottlenecks early next year, and to continue a study on the impact of energy efficiency on energy demand. The 10th ministerial meeting will be held in Vienna, Austria in 2013.

EU Energy Commissioner Günther Oettinger welcomed this week the agreement to implement the Trans-Anatolia Gas Pipeline (TANAP), bringing Europe closer to sourcing gas directly from Azerbaijan and other countries in the Caspian region. The aim is to implement the pipeline no later than 2018. The gas will travel from the Eastern Turkish border to the Western Turkish border. Pipelines will link to the soon to be expanded Southern Caucasus pipeline starting in Azerbaijan through Georgia to a variety of proposed pipelines in Europe. The Shah Deniz Gas field is the largest natural gas field in Azerbaijan with an anticipated production of 16 bcm/year. The new pipeline connections will contribute to supply security for the EU and Turkey.

Nabucco West, the South East Europe Pipeline (SEEP) and the Trans-Adriatic Pipeline (TAP) were all in competition to deliver gas to Europe from the Turkish border. The Nabucco West pipeline was pre-selected by Azerbaijan this week as the preferred partner for the distribution of gas to Central Europe, bringing oil from the Turkish border to Vienna, Austria. The European Union took the lead in developing the Southern Gas Corridor and developed the concepts that have led to this decision. A decision by Azerbaijani authorities on the final route is planned for June 2013.

While Europe has been looking to expand energy cooperation with its international partners, the renewed sanctions on Iranian oil came into force. The EU is traditionally a major importer of Iranian oil, accounting for 23% of Iran's oil exports. These are the toughest ever EU sanctions, which are targeted at intensifying pressure in the Iranian Government over its perceived lack of transparency in its nuclear program. The sanctions include a ban on Iranian oil, financial services related to Iranian oil sales, and the purchase and transport of Iranian oil. The aggregate impact of the reduction of Iranian oil sales world wide due toincreased sanctions globally amounts to almost $32 billion in lost revenues every year. China, India, Japan, South Korea, South Africa, Turkey, Taiwan, Sri Lanka, Singapore and Malaysia have already reduced Iranian oil imports significantly.