trans adriatic pipeline (tap) – the european leg of the southern gas corridor

Presentation: Trans Adriatic Pipeline (TAP) – The European leg of the Southern Gas Corridor

Shkelqim Bozgo, Country Manager for Albania, Trans

Adriatic Pipeline (TAP)

TAP – the European Leg of the Southern Gas

Corridor

Shkelqim Bozgo, TAP Country Manager Albania Albania Oil, Gas & Energy Summit 2015 Tirana, 17 March 2015

Southern Gas Corridor Paving the Way to Europe’s Energy Security

• Investment of approx. USD 45 bln

• Crossing six countries – 3,500 km

• Nine energy companies involved

3 TAP – the European Leg of the Southern Gas Corridor

TAP's key features

• Designed to expand from 10 to 20 bcm/a (plus)

• 870 km in length (105 km offshore)

• 48” onshore, 36” offshore

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Aligned with EU’s energy policy objectives

TAP – the European Leg of the Southern Gas Corridor

TAP’s shareholders

5

Supported by major energy companies

SOCAR

(20%)

BP

(20%)

Statoil

(20%)

Fluxys

(19%)

Enagás

(16%)

Axpo

(5%)


TAP will bring supplies of Caspian gas to European markets

TAP will connect to the

Italian natural gas grid to

provide firm capacity at the

Italian virtual trading point

(PSV), from which all Italian

gas exit points can be

reached

Caspian gas can then

ultimately be delivered to:

• Austria

• Germany and France (via

Switzerland)

• N.W EU markets


Cooperation in SEE – Facilitating connections in the region

IGB

• IGB is designed to connect Greece (Komotini) to Bulgaria (Stara Zagora).

• Planned Capacity: up to 3 bcma (option for capacity increase to 5 bcma)

IAP • TAP-IAP Joint Working Groups • Planned Capacity: up to 5 bcma • Feasibility Study is being developed by

WBIF-COWI-IPF** Consortium.

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** WBIF/COWI IPF Consortium is the Technical Assistance Contractor contracted by the EU to implement the EU funded Western Balkans Investment Framework (WBIF)

Infrastructure Projects' Facility (IPF)


TAP in Albania


From project planning to implementation

• Access roads: 110km (new and upgraded)

• Bridges: 50 refurbished and 2 new

• 9,000 plots of land

• 8 block valve stations (BVS)

• Crossing 570 roads, 440 rivers & railway (major and minor crossings)


Local engagement

• 7 pillar community investment programme

Upgrade of 5 social facilities

• 130 meetings (ESIA disclosure)

• 60 meetings in the frame of implementation processes (LEA disclosure, compensation values disclosure) attended by over 1,000 participants.

• Around 13,000 individual owner meetings in the frame of Pre-census & Asset Inventory.

• Business networking event with over 110 local companies (January 2015 – Tirana)


Benefits

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Construction

Direct benefits

Sourcing locally

Induced benefits

Operations

Direct benefits

Induced benefits

Taxes Gas exit capacities


What’s next for TAP?

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Schedule to completion

Pipeline construction

2013 2014 2015 2016 2017 2018 2019

Q4 2013 TAP’s Resolution to Construct

Q4 2013 Shah Deniz 2 Final Investment Decision

End 2015 Final Contract Award

2020 First Gas / TAP starts operations

Q2 2013 TAP selected by SDC


Pre-qualification ongoing

Pre-qualification (PQ) process for interested suppliers checks capability, capacity and availability of goods and services in the market:

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Status

• Construction and rehabilitation of access roads and bridges in Albania

PQ completed, ITT issued April

2014

• Line pipes, casing pipes and bends (onshore and offshore)

PQ (onshore) launched Dec 2014

PQ (offshore) launched Feb 2015

• Large diameter ball valves PQ complete, ITT issued Dec 2014

• SCADA systems PQ to be launched

• Turbo compressors PQ complete, ITT issued Dec 2014

• Fibre optic cable PQ to be launched

• Onshore pipeline construction PQ complete, ITT issued Oct 2014

• Compressor stations PQ complete, ITT issued Nov 2014

• Offshore pipeline construction PQ launched Feb 2015

• Pipeline receiving terminal (PRT) and pipeline construction

PQ to be launched

Early works contracts

Company Provided Items (CPI)

Engineering, Procurement and Construction (EPC)


LEA (Land Easement & Acquisition) process

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Transparent, Auditable, Compliant

LEA

preparation

Secure

land access Audit and

closure

2012 – 2015

– Determine social and environmental

baseline

– Define compensations framework

and methodology

– Disbursement to landowners

2016 – 2019

– Monitoring

– Implement Right of Way

– Compensate for unforeseen damages

2020

– Land restoration process monitoring

– Audit & Close-out


Construction & Land restauration

Key elements for successful construction


Reputation

Legacy

Schedule Safety

Cost

Thank you

www.tap-ag.com