Debating Eurasia’s energy future with other leading industry and government figures at the Atlantic Council forum, Mr Tungland said that with an investment of 20bn Euros in projects such as Shah Deniz phase II, investors would want to see these substantial sums secured by ensuring the most cost-efficient access to a sizeable market.
Mr Tungland pointed out that TAP’s contribution to Shah Deniz II provides the shortest route in the Southern Gas Corridor that will bring 10bcm per annum of Caspian gas to Europe. The TAP pipeline is designed to expand to 20bcm as more gas comes on stream in the future, he added. TAP is also happy to accommodate interconnectors in the Balkan region and offers an underground storage option and significant reverse flow capability that will allow gas to flow not only from East to West but in the opposite direction. “TAP’s reverse flow capability will ensure that countries in the Balkan region will be in a position to secure the energy they require” he said.
“Due to the sheer size and scale of development needed for energy projects in Eurasia, the region’s energy future – and by this I mean in particular the Southern Gas Corridor – will need to be built step by step in phases that are based on sound and commercially viable projects that can be ready as and when gas comes on stream,” he continued. “I am convinced that TAP is the best option to fit the availability of gas in the Caspian today and will be the first phase in opening up the Southern Gas Corridor.”
Mr Tungland was speaking at the Atlantic Council’s Black Sea Energy and Economic Forum during a session on Moving Energy to Market. Chaired by retired United States Ambassador Steven Mann, the discussion heard contributions from several senior industry and government representatives including Prime Minister Erdogan of Turkey.