BP will invest in two pipelines to move Caspian gas to Europe
(Wall Street Journal; June 27) - BP is set to invest in two pipeline projects aimed at carrying Caspian natural gas to Europe, in a sign that the oil giant is doubling-down on its involvement in the Shah Deniz project despite a projected 25 percent rise in costs. BP leads Shah Deniz 2, a consortium developing a giant gas field in Azerbaijan's chunk of the Caspian basin, a project that the European Union sees as key to its energy security because it will start relieving the bloc's dependence on Russian imports.
BP's moves show it is keen to ensure control over the whole length of the project, from wells to end markets. They also suggest a clearer picture of how the so-called Southern Corridor - the gas route from Azerbaijan to Europe - could look. Al Cook, BP's Shah Deniz development vice president, told Dow Jones Newswires the company is set to soon get a stake in the Trans-Adriatic Pipeline, or TAP, which would take gas to Italy, rather than through central Europe.
Cook also said BP is negotiating the acquisition of a stake in the Trans-Anatolian Pipeline, known as TANAP, which would transport gas across Turkey to Europe, and it plans to sign an agreement in the next few months.