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FAQ

  1. Who is developing TAP?
  2. Who will build the pipeline?
  3. WHAT is TAP?
  4. What are the key data for the TAP Project?
  5. What are the main risks associated with this pipeline project?
  6. Are there any options for additional storage or LNG developments linked to TAP?
  7. Why is TAP being developed?
  8. What are the main opportunities associated with this pipeline project?
  9. Is there really a need for another pipeline? Won't this create surplus capacities?
  10. Are EGL and/or StatoilHydro interested to bring more partners on board in this project?
  11. How much is it going to cost to build TAP?
  12. How does TAP respond to EU policies concerning gas transportation matters?
  13. Does the project represent any special technical challenges?
  14. How will the affected land owners along the pipeline be compensated?
  15. How will you handle the pipeline crossing of sensitive areas
  16. Are there any earthquake risks along the pipeline?
  17. When will construction begin?
  18. Where will TAP be located?


Who is developing TAP?

StatoilHydro ASA and Swiss-based EGL have established an equally-owned joint venture company to develop and operate the Trans Adriatic Pipeline.
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Who will build the pipeline?

Invitations to a competitive tender for the pipeline construction will be published in due time. The tender will be called upon completion of the planning work, likely in winter 2009.

Invitations to tender are expected to be issued on completion of the front-end engineering and design phase of the work .
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WHAT is TAP?

TAP is the abbreviation for Trans Adriatic Pipeline, a natural gas pipeline project that is being jointly developed by EGL Group and StatoilHydro ASA.
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What are the key data for the TAP Project?

Total length
Length off-shore
520 kilometres
115 kilometres

of which:

Greece 186 kilometres
Albania 200 kilometres
Italy 19 kilometres
Diameter onshore 48 inches (1,2 metres)
offshore 36 inches (0.9 metres)
Capacity 10 BCM/year expandable to 20 BCM/year
Highest elevation 1800 metres (in Albania's mountainous area)
Lowest depth off-shore 820 metres (on the Adriatic Sea bed)
Feasibility study concluded in 2006
Basic engineering concluded in 2007
Front-End Engineering running
Final investment decision 2nd half of 2009
Operational in 2012, depending on gas shipment needs


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What are the main risks associated with this pipeline project?

A project of this magnitude is challenging and complex; but there are considered to be no substantial or extraordinary risks associated with the project that cannot be effectively managed.

The risks traditionally associated with such projects can be minimised through professional project management.
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Are there any options for additional storage or LNG developments linked to TAP?

The TAP project also includes the option to develop natural gas storage facilities and a Liquiefied Natural Gas (LNG) terminal in Albania, which in turn would further contribute to increasing security of supply in southeast Europe.
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Why is TAP being developed?

TAP's aim is to provide sustainable solutions for gas supply infrastructure designed to promote diversification and security of supply, as well as generate economic growth and political stability by opening the Eurasia Gas Corridor.
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What are the main opportunities associated with this pipeline project?

With an initial annual capacity of around 10 billion cubic meters of natural gas, the pipeline will put gas supplies to Europe on a broader footing opening a new corridor from Caspian Sea and Middle East regions.

TAP can expand its transport capacity to 20 BCM a year. The project also includes the option to develop natural gas storage facilities and a Liquiefied Natural Gas (LNG) terminal in Albania, which in turn would further contribute to increasing security of supply in southeast Europe.

TAP's path from Greece through Albania will also enable future development of gas distribution and deliveries to countries in Southeast Europe, especially in places where it is urgently needed as a means to supply energy security. top
Is there really a need for another pipeline? Won't this create surplus capacities?

New gas pipelines tapping into the gas reserves of the Middle East and Caspian regions will add yet another gas supply corridor to Europe besides similar ones originating in Russia, Africa and the North Sea, thus contributing to diversification and security of supply. TAP will make an important contribution to face this challenge along the fourth gas supply corridor to Europe: the Eurasian gas corridor.
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Are EGL and/or StatoilHydro interested to bring more partners on board in this project?

We are happy about any strong partner that can contribute to the success of TAP, especially if new partners add value to the whole chain of the project, for the distribution, construction and delivery of gas. The widening of the TAP partnership is an issue that will be considered continuously.
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How much is it going to cost to build TAP?

EGL, which initiated the TAP Project, estimates that construction of the pipeline will cost about 1.5 billion euros. The final cost will depend on a series of factors at the time of construction, such as international steel prices and other pipeline equipment-related costs.
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How does TAP respond to EU policies concerning gas transportation matters?

Expansion and diversification of natural gas transport capacities to and within Europe are important objectives of the EU's energy policy (Trans European Networks – Energy, TEN-E).

The new pipeline is supported by the EU as a TEN-E project, and is in conformity with its energy policy. It is the intention that TAP will continue to be developed in compliance with all EU policies regarding gas transportation matters.
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Does the project represent any special technical challenges?

Any project of this size poses a number of challenges within all disciplines. Constructing a pipeline in rugged mountainous terrain up to 1800 m and with no infrastructure is in itself quite a challenge, but there is relevant experience from other projects like BTC (Baku-Tbilisi-Ceyhan - for oil ) and SCP (South Caucasus Pipeline – for gas.)

Laying a 36-inch pipeline in water as deep as 820 metres is also a challenge, but here contractors and StatoilHydro have the required expertise.
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How will the affected land owners along the pipeline be compensated?

A specific procedure has been developed for obtaining the Right-of-Way (RoW) and land acquisition in the respective host countries. A specialised service company, in cooperation with local authorities, will be employed for this task, supervised and monitored by the TAP Project team.

It is in our intention, as the TAP Project company, to negotiate the RoW through direct negotiations with landowners, and only use legal actions and potential expropriation as a final effort if negotiations are not possible.

TAP will also develop a social investment scheme to compensate the communities along the pipeline's route rather than just individuals. All such compensations will follow strict rules of transparency.
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How will you handle the pipeline crossing of sensitive areas?

The TAP project has very high ambition for Health, Safety and Environment (HSE.) We aim at entirely reconstructing the environment along the routing of the TAP pipeline. Any activities affecting the environment shall be carefully minimized, and any adverse effects shall be mitigated appropriately. We have already performed studies of alternative landfall locations and construction methods in close understanding with the local authorities. We are confident that ongoing engineering efforts will prove a sustainable and acceptable solution to this challenge.
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Are there any earthquake risks along the pipeline?

Parts of the pipeline pass through areas of a certain seismic activity. However pipeline design through such areas is considered “stat-of-the-art” within the pipeline industry and the TAP pipeline will meet the highest requirements in that respect.
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When will construction begin?

The investment decision will be reached in the second half of 2009. The pipeline will be commissioned in 2012 and will be operational depending on gas shipment needs.
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Where will TAP be located?

The new pipeline will start in Greece, near Thessaloniki, cross the territory of Albania from East to West, then stretch across the Adriatic Sea further west to link with pipelines in Italy’s southern region of Puglia (the heel of the Italian boot.) TAP will link to pipeline systems in Greece, east of Albania. TAP will use the shortest route via existing systems in Turkey and Greece to convey natural gas from the Caspian Sea and the Middle East, which so far never has reached Europe through pipelines.
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