Government of Greece and TAP agree Host Government Agreement

Government of Greece and TAP agree Host Government Agreement

Athens, June 21, 2013

The Greek Government (the Ministry of Energy, Environment and Climate Change – MEECC) and the Trans Adriatic Pipeline (TAP) project have today agreed the Host Government Agreement (HGA) in Athens (photos).

The HGA sets out the framework by which the project will be realized and operated on Greek territory. This includes processes related to land easement and acquisition, the implementation of technical, safety, environmental and social standards and permitting.

TAP will be one of the largest sources of foreign direct investment in Greece, and is estimated to cost approximately Euro 1.5 bn for the Greek section. During construction, TAP is anticipated to create some 2,000 direct, and up to 10,000 indirect, new jobs across a number of industries including manufacturing and utilities, transport, communications and financial and business services. The project already collaborates with a number of Greek businesses and experts, and will seek to expand such cooperation in line with its commitment to Local Content.

TAP will enhance Europe’s energy security and diversity by providing a new source of gas. The pipeline will transport natural gas from the giant Shah Deniz II development in Azerbaijan, through Greece and Albania to Italy, from where it can be transported further into Western and Central Europe.

The longest section of the TAP pipeline will be in Greece. The pipeline will start at Kipoi at the Turkish-Greek border, and will cover some 550km entering Albania northwest of Dipotamia. As such, the project will support Greece’s ambition of becoming an important “Energy Highway.” Furthermore, the planned interconnection points and reverse flow capability of TAP will also support security of supply for other countries in the region.

Kjetil Tungland, TAP’s Managing Director, stated: “We have now all necessary political agreements in place for the Shah Deniz decision. I remain absolutely confident that our proposal is the strongest from the technical, commercial and political points of view, with the overwhelming support of the host governments.  I would like to also thank the Greek Government in particular for making this incredible achievement possible and also for their continuing political support to TAP.”

Rikard Scoufias, TAP’s Country Director for Greece, added: “Concluding on the contents of this agreement has required a significant amount of work from both parties. This achievement has resulted not only in an important component for securing Greece’s and TAP’s bid for the Southern Gas Corridor, but also constitutes an international benchmark for expediency in terms of establishing a positive investment climate. With the support provided by the Greek Government, as well as the Greek Parliament, I feel that we are well on our way to deliver a project that will have notable positive impact on Greece, the region as well as European energy objectives.” /ibna/