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The European Commission Grants State Aid Clearance for Greek Host Government Agreement with TAP

03 March 2016

 

Baar, Switzerland. The Trans Adriatic Pipeline AG (TAP) today received confirmation that the European Commission granted state aid clearance for the Host Government Agreement concluded between the Hellenic Republic and TAP. The decision (link to European Commission press release) confirms that the HGA is compliant with European Union internal market rules and solidifies the legal framework by which the TAP project is realised and will be operated on Greek territory.

Ian Bradshaw, Managing Director at TAP, said: “Today’s announcement is another important step towards the completion of TAP. It reinforces that the terms put forward for our project realisation in Greece – including technical, safety, environment and social standards, permitting and land easement and acquisition – are entirely in line with level playing field principles.”

“TAP continues towards construction and implementation of the project, benefiting from robust collaboration with the Hellenic Republic. We want to thank the current administration for their excellent work in concluding the state aid clearance process.” Bradshaw added.

The Greek Ministry of Energy, Environment and Climate Change (MEECC) and the Greek Ministry of Finance on the one hand and TAP on the other hand signed the HGA in Athens, in June 2013 (see press release). The HGA was then ratified by the Greek Parliament in December 2013 (see press release). Subsequently, the Hellenic Republic submitted the HGA to the European Commission, in accordance with EU regulation requirements.

 

ENDS

About the Trans Adriatic Pipeline (TAP)

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The 878 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.

TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on grants or subsidies. With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately in early 2020.

TAP’s shareholding is comprised of BP (20%), SOCAR (20%), Snam S.p.A. (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

Media enquiries: media@tap-ag.com  

More about TAP: www.tap-ag.com | www.twitter.com/tap_pipeline