TAP and BH-Gas Sign MOUC in Support of Security of Supply in the South Eastern European Region

The Trans Adriatic Pipeline AG and the Bosnian system operator BH-Gas have signed a Memorandum of Understanding and Cooperation (MOUC) to explore opportunities for developing natural gas markets and enhancing supply diversity in South East Europe (SEE).

Security of supply and diversification of gas sources, in particular in the SEE region, are important European objectives. This is the second initiative that TAP has undertaken during the last months to make a positive contribution to these objectives; in February 2011 TAP and Croatian system operator Plinacro Ltd entered into an MOUC aimed at establishing cooperation in a number of areas in order to ensure the coordinated development of their respective natural gas pipeline projects.

The TAP consortium, comprised of European energy leaders Statoil, E.ON Ruhrgas and EGL, is aimed at constructing a natural gas pipeline via Greece, Albania and Italy to bring Caspian gas to Europe. The pipeline will be a key component in opening the European Union-designated Southern Gas Corridor. TAP is envisaged with reverse-flow capabilities that will also facilitate reliability in the event of regional energy supply disruptions. Plinacro, together with BH-Gas, are promoting the Ionian Adriatic Pipeline (IAP), which intends to deliver gas to Croatia, Bosnia and Herzegovina, Montenegro and Albania. The IAP will bring major energy security and economic benefits to the region.

Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project, said: “With this signature, TAP has taken yet another step to respond to the strategic challenges of energy supply for Europe. While being a purely private sector project, not relying upon public finance, we still aim to contribute to meeting key national, regional and European energy policy objectives. We are delighted to have signed this agreement with this key additional partner and look forward to making real progress. We will now continue our work relentlessly to pave the way for gas supplies to the entire South Eastern European region.”