TAP and Greece Start Talks on Host Government Agreement.
BAKE[pounds sterling] (CyHAN)- The Trans Adriatic Pipeline (TAP) and the Greek government formally initiated the process to conclude the Host Government Agreement that will govern the group's investment, TAP reported.
"At 1.5 billion Euros, this is expected to be the single largest current Foreign Direct Investment (FDI FDI
See: Foreign direct investment ) in Greece," TAP's report said.
TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea Adriatic Sea (ādrēă`tĭk), arm of the Mediterranean Sea, between Italy and the Balkan Peninsula. It extends c.500 mi (800 km) from the Gulf of Venice, at its head, SE to the Strait of Otranto, which leads to the Ionian Sea. to southern Italy and further into Western Europe. Gas to be produced within the second phase of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for TAP.
TAP's initial pipeline capacity will be 10 billion cubic metres per year, but is easily expandable to 20 billion cubic metres per year. TAP's shareholders are AXPO of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).
Shah Deniz consortium will make its final decision on a pipeline route in 2013.
The construction of TAP would start, should the Shah Deniz consortium select the pipeline as the preferred gas transportation solution.
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