Trans Adriatic Pipeline and the government of Montenegro sign MOUC on energy cooperation

Date

20 May 2011

Sections

Energy

TAP and the Ministry of Economy of Montenegro have entered into a Memorandum of Understanding and Cooperation (MOUC) to explore opportunities for developing natural gas markets and enhancing supply diversity in South East Europe (SEE).

Baar, Switzerland. Trans Adriatic Pipeline continues to develop the framework that will enable increased security of supply and diversification of gas resources in the SEE region. This new MOUC is the third 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 concluded an MOUC aimed at establishing cooperation in a number of areas and in April 2011 TAP and Bosnian gas system operator BH-Gas entered into a similar agreement.

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 and the Ministry of Economy of Montenegro, are promoting the Ionian Adriatic Pipeline (IAP), which intends to deliver gas to Croatia, Bosnia and Herzegovina, Montenegro and Albania. The IAP, which would connect to the TAP system at a tie-in point in Albania, will bring major energy security and economic benefits to the region.

Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project, said: “The signature of this MOUC is another significant step towards increased security of supply and diversification of gas resources in South Eastern Europe. TAP’s route and design features place it in an optimal position to ensure the realisation of these two strategic objectives. TAP will continue to work diligently with its partners in South Eastern Europe to bring gas supplies and promote economic development in the region.”

Vladan Dubljević, Deputy Minister of the Ministry of Economy of Montenegro said: ”The Govern-ment of Montenegro welcomes the signature of this MOUC as it lays the foundation for the future gasification of the country. Natural gas has applications in various fields and can be used to un-derpin the further development of our economy in line with today’s environmental requirements. Furthermore, our cooperation with TAP and IAP will enable Montenegro to diversify its portfolio of energy resources and to improve its security of supply. This is also of particular importance given that Montenegro has begun the comprehensive preparation for the publication of the first public tender for award of Concession Contract for Production of Hydrocarbons / Exploration Concession Contract in the offshore area of Montenegro. This MOUC will only increase the interest of potential companies, because it opens up additional possibilities for companies in case of the commercial discovery of gas in the offshore area of Montenegro”.

-ENDS

Trans Adriatic Pipeline and the government of Montenegro sign MOUC on energy cooperation

TAP and the Ministry of Economy of Montenegro have entered into a Memorandum of Understanding and Cooperation (MOUC) to explore opportunities for developing natural gas markets and enhancing supply diversity in South East Europe (SEE).
Baar, Switzerland. Trans Adriatic Pipeline continues to develop the framework that will enable increased security of supply and diversification of gas resources in the SEE region. This new MOUC is the third 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 concluded an MOUC aimed at establishing cooperation in a number of areas and in April 2011 TAP and Bosnian gas system operator BH-Gas entered into a similar agreement.

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 and the Ministry of Economy of Montenegro, are promoting the Ionian Adriatic Pipeline (IAP), which intends to deliver gas to Croatia, Bosnia and Herzegovina, Montenegro and Albania. The IAP, which would connect to the TAP system at a tie-in point in Albania, will bring major energy security and economic benefits to the region.

Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline project, said: “The signature of this MOUC is another significant step towards increased security of supply and diversification of gas resources in South Eastern Europe. TAP’s route and design features place it in an optimal position to ensure the realisation of these two strategic objectives. TAP will continue to work diligently with its partners in South Eastern Europe to bring gas supplies and promote economic development in the region.”

Vladan Dubljević, Deputy Minister of the Ministry of Economy of Montenegro said: ”The Govern-ment of Montenegro welcomes the signature of this MOUC as it lays the foundation for the future gasification of the country. Natural gas has applications in various fields and can be used to un-derpin the further development of our economy in line with today’s environmental requirements. Furthermore, our cooperation with TAP and IAP will enable Montenegro to diversify its portfolio of energy resources and to improve its security of supply. This is also of particular importance given that Montenegro has begun the comprehensive preparation for the publication of the first public tender for award of Concession Contract for Production of Hydrocarbons / Exploration Concession Contract in the offshore area of Montenegro. This MOUC will only increase the interest of potential companies, because it opens up additional possibilities for companies in case of the commercial discovery of gas in the offshore area of Montenegro”.

-ENDS