Contents What is TAP? 02 Our commitment 22 Environment 24 The big picture 04 Community 25 Health and safety 25 Southern Gas Corridor 06 Our responsibilities 26 European Union support 07 Strategic partnerships 08 Securing the future 28 Benefits for host countries 09 The pipeline 10 About us 30 TAP’s route 12 Our company 31 Pipeline construction 14 Our values 31 Code of Conduct 31 Paving the way 16 Contact us 32 Procurement 18 Land access 20 Contents 01 TAP’s shareholders take environmental protection, corporate social responsibility and safety very seriously, implementing best industry practice. 02 Trans Adriatic Pipeline What is TAP? The Trans Adriatic Pipeline (TAP) will transport natural gas from the Caspian region to Europe. Connecting with the Trans Anatolian High standards A better deal Pipeline (TANAP) at the Greek-Turkish TAP’s shareholders are major By helping to improve the liquidity border, TAP will cross Northern energy companies with significant and competitiveness of European Greece, Albania and the Adriatic experience in delivering complex energy markets, TAP will also Sea before coming ashore in international projects. encourage a better deal for both Southern Italy to connect to energy producers and consumers. the Italian natural gas network. They take environmental protection, corporate social responsibility and In addition to the stimulus to Once built, TAP will offer a direct safety very seriously, implementing economic development that new transportation route to open up the best industry practice. In addition, energy supplies bring, construction of vital Southern Gas Corridor, a 3,500km TAP complies voluntarily with the high the pipeline will attract direct foreign long gas value chain stretching from standards of the European Bank for investment to TAP’s host countries. the Caspian Sea to Europe. Reconstruction and Development (EBRD) and international financing Independent experts estimate that institutions. new jobs will be created, directly and indirectly, in manufacturing, The pipeline’s design has been utilities, transport, communications, developed in accordance with financial and business services. recognised national and international safety standards. All of this expertise At a regional level, TAP will also equips TAP to deliver the project help realise the European Union’s on time and to specification. objective of facilitating gas supplies Furthermore, TAP is not dependent on to the growing energy markets of public subsidies and will bring benefits South East Europe, some of which to its host countries. currently have no access to gas at all. Anticipating future needs, the TAP is a project for the future, helping project’s developers integrated ensure the security of Europe’s energy flexibility into the pipeline design to supply for decades to come. accommodate future gas volumes. TAP’s initial capacity of 10 billion cubic metres (bcm) of gas per year is equivalent to the energy consumption of approximately seven million households in Europe. In future, the addition of two extra compressor stations could double throughput to more than 20 bcm as additional energy supplies come on stream in the wider Caspian region. What is TAP? 03 The big picture Once built, TAP will become a centrepiece of the Southern Gas Corridor, contributing to Europe’s energy future. One of the most important energy infrastructure projects, the pipeline will allow Caspian natural gas to flow into Europe’s growing energy markets. 04 Trans Adriatic Pipeline The big picture 05 Southern Gas Corridor TAP’s design offers various connection The Southern Gas Corridor (SGC) options to a number of existing and is a term used to describe planned proposed pipelines along its route. infrastructure projects aimed at This will enable the possible delivery improving the security and diversity of Caspian gas to destinations of the EU’s energy supply by bringing throughout Europe: natural gas from the Caspian region to Europe. – G reece and Albania: TAP will transit directly through Greece and Albania. Greece’s public gas supply corporation DEPA signed a TAP’s design offers various connection gas sales agreement with the Shah Deniz Consortium in September options to a number of existing and 2013. Albania could also potentially receive access to Caspian gas from proposed pipelines along its route. Shah Deniz in the future. – B ulgaria: TAP can provide a new source of gas by linking to existing and planned pipeline infrastructure, including reverse flow through Complex gas value chain an interconnector to the Kula- The Southern Gas Corridor is one of Sidirokastro line, and/or a proposed the most complex gas value chains connection with the planned ever developed in the world. Interconnector Greece Bulgaria (IGB) pipeline. Stretching approximately 3,500kms – S outh Eastern Europe: Caspian in length, crossing seven countries gas could flow to the region’s and involving more than a dozen growing markets and contribute major energy companies, it is to the establishment of new energy comprised of several separate markets in the Balkans and South energy projects representing a East Europe that are currently total investment of approximately dependent on a single gas US$45 billion: supplier. TAP is cooperating with the developers of the planned – The Shah Deniz 2 development, Ionian Adriatic Pipeline (IAP) to drilling wells and producing gas discuss connection possibilities offshore in the Caspian Sea. to markets in Southern Croatia, – Expansion of the natural gas Albania, Montenegro, and Bosnia processing plant at the Sangachal and Herzegovina. Terminal on the Caspian Sea coast – I taly: TAP will connect to the Italian in Azerbaijan. natural gas grid operated by Snam – Three pipeline projects: Rete Gas from which all Italian gas • South Caucasus Pipeline exit points to European destinations (SCPX) – Azerbaijan, Georgia may be reached. • Trans Anatolian Pipeline – A ustria and Central Europe: natural (TANAP) – Turkey gas transported via TAP can reach • Trans Adriatic Pipeline the Central European gas hub in (TAP) – Greece, Albania, Italy Baumgarten, Austria via the Trans – Expansion of the Italian gas Austria Gas (TAG) pipeline, using transmission network. swaps and reverse flow. – Possibilities for further connection – Germany and France via to gas networks in South Eastern, Switzerland: using reverse flow Central and Western Europe. through the Transitgas pipeline. – U nited Kingdom: grid operators Taking Caspian gas to Europe Snam Rete Gas and Fluxys have To ensure that the Southern agreed to develop physical reverse Gas Corridor fulfils its purpose, flow capabilities between Italy it is essential that Caspian gas and the UK by interconnecting reaches many different European the gas markets of Italy, Switzerland, markets and consumers. Germany, the Netherlands and Belgium, enabling Caspian gas to reach the UK. 06 Trans Adriatic Pipeline The Southern Gas Corridor is a major TAP was selected as a PCI for its role component of EU energy policy. in opening up the Southern Gas TAP’s role in realising that vision will Corridor, one of 12 so-called energy not only provide economic benefits. corridors identified by the EU as It will also ensure that one of the priorities for the achievement continent’s vital energy routes of its energy policy objectives. 3,500km remains viable for decades to come. PCI status is reserved for key Total distance of the Southern European Union support infrastructure projects and is intended Gas Corridor gas value chain The European Union recognises to accelerate the granting of the role of TAP in helping to contribute necessary licences and permits and to the security and diversity to improve regulatory processes. of Europe’s energy supply. PCIs help member states to integrate One of the most important energy their energy markets, enable them to infrastructure projects in many years, diversify their energy sources, and aim once built TAP will allow Caspian to bring an end to the energy isolation US$45 billion natural gas to flow into Europe’s of some member states. growing energy markets. The approximate total investment Eligible projects must: of the Southern Gas Corridor and In doing so, the pipeline will open its associated projects up the Southern Gas Corridor at – H ave significant benefits for at least the heart of the EU’s energy strategy. two EU member states. This new route will add to the number – C ontribute to market integration of different sources from which and the fostering of competition. Europe receives its natural gas, – E nhance security and making its energy supplies safer, diversification of supply. more flexible and more reliable. – R educe CO emissions. 2 Project of Common Interest The identification of TAP as a PCI The European Commission, European formalises the high level of political Parliament and European Council support from the EU for the project have given TAP Project of Common and its implementation. Interest (PCI) status under the new guidelines for trans-European energy infrastructure (TEN-E). Black Sea Adriatic Caspian Sea Georgia Sea Rome Albania Tbilisi Tirana Italy Istanbul Ankara SCP TAP Baku Greece TANAP Azerbaijan Turkey Athens Map of the Southern Gas Corridor The big picture 07 Individual Host Government Agreements (HGAs) have also been signed with the governments of Albania and Greece. They set out the framework in which TAP will be realised and operated in each country. In Albania, where it has been designated a ‘Project of National Importance’, TAP is also supporting the government in developing a domestic gas market plan. Ionian Adriatic Pipeline In South East Europe, one of the regions that will benefit most from the Southern Gas Corridor, TAP has entered into several Memoranda of Understanding and Cooperation (MoUC) with the developers of the proposed Ionian Adriatic Pipeline (IAP). This pipeline aims to take Caspian gas into markets including Albania, Montenegro, Southern Croatia and Bosnia and Herzegovina. The Croatian gas system operator Plinacro, Bosnian-Herzegovinian gas company BH-Gas, Slovenian Geoplin Plinovodi and the energy ministries of Albania and Montenegro are working Project of Energy Community Interest Strategic partnerships with TAP on the interconnection and In addition to its PCI status, the Building a pipeline across a continent alignment of the two projects. Energy Community has named requires substantial resources, TAP as a Project of Energy Community outstanding technical expertise, Further support for the TAP-IAP Interest (PECI). the highest environmental and safety connection came in May 2013 standards, sound financing and, when the governments of Albania, A task force chaired by the European above all, strong partnerships. Bosnia and Herzegovina, Croatia Commission assessed one hundred and Montenegro signed an MoU different projects before finally During the past few years, TAP has in support of both pipelines, as well selecting 35 PECIs, including TAP. successfully established several as a declaration of support by the strategic partnerships with various Adriatic Ionian Initiative Council. This designation is only given to governments and companies. projects which, in the words of the Additionally, in June 2013 the foreign Energy Community Secretariat, European Union ministers of six countries – Albania, “have the highest positive impact At the geo-political level, TAP’s Bosnia and Herzegovina, Croatia, in the largest possible number of strategic partnership with the Greece, Italy and Montenegro – Contracting Parties”. European Union has been evidenced met in Dubrovnik, Croatia, to once by the strong support of EU bodies again confirm high level political such as the Commission, Parliament support of TAP and IAP. and Council. Interconnector Greece Bulgaria At the national government level, In Bulgaria, the developers of the the three countries through which the planned Interconnector Greece- pipeline will pass – Greece, Albania Bulgaria (IGB) signed a technical and Italy – confirmed their joint MoUC with TAP in January 2014. commitment to TAP with the signing The IGB could enable Caspian gas of a trilateral Intergovernmental to flow into the Bulgarian network Agreement, since ratified by each and further into South East Europe. country’s parliament. 08 Trans Adriatic Pipeline