The Shah Deniz II consortium has selected the Trans-Adriatic pipeline (TAP) to export its gas output to Europe, over Nabucco West. The TAP pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy. It will have a capacity of 10 bcm/year (to be later increased to 20 bcm/year).
Gazprom's decision not to bid for the acquisition of the Greek gas company DEPA could represent a positive signal for Azerbaijan, which does not want the Russian company to control transit through any of the countries along the export pipeline. SOCAR had the opportunity to acquire Greek gas transport network operator DESFA. Moreover, the cancellation of a potential southern branch (Greece-Italy) of Gazprom's South Stream helped clear the way for TAP to reach the Italian market.
This decision is very likely to stall the development of the 31 bcm/year Nabucco gas pipeline project, which was in direct competition with TAP to export Azerbaijan gas and with South Stream (parallel line through Bulgaria, Romania, Hungary and Austria).
The operator at Shah Deniz is BP (25.5%), with the remaining stakes held by Statoil (25.5%), the State Oil Company of Azerbaijan Republic (10%), Lukoil (10%), Nico (10%), Total (10%) and Turkish Petroleum Corp. (9%).
The shareholders in TAP are Axpo (42.5%), Statoil (42.5%) and E.ON (15%). Shareholders in Nabucco West are OMV (33.34%), Bulgarian Energy holding, Botas, FGSZ and Transgaz (each with 16.67%), with GDF SUEZ also recently announcing it had acquired a stake.