TAP-ping the gas market

摘要

Selection of the Trans-Adriatic Pipeline (TAP)* to transport Shakh Deniz Phase 2 gas marks another step towards delivering Azerbaijani gas to the heart of Europe, according to Wood Mackenzie, also stating that the BP-led Shakh Deniz consortium 'preferred the greater commercial attractiveness of the TAP option over the strategic benefits of the Nabucco West project'. Commenting on the decision, Massimo Di-Odoardo, Senior European Gas & Power research analyst for Wood Mackenzie, says: 'The decision concludes a lengthy selection process. The shorter TAP option will have been able to propose a more attractive tariff, overcoming long-held strategic support for the Nabucco project. Nabucco West is a downsized version of the original Nabucco pipeline, and a means of diversifying supply to south-east Europe, which is dominated by Russian gas. The decision has been driven by commercial considerations, including the financial robustness of the pipeline consortia and expected prices in target markets.'