Athens, 3 October 2011: The partnership between DEPA, the Public Gas Corporation of Greece, and Italian energy company Edison spa, submitted its technical proposal and commercial offer to transit gas through its ITGI system from the Shah Deniz II field in Azerbaijan, to markets in South Eastern, Central and Northern Europe via Italy.
“The ITGI system will deliver Azeri gas to Europe in the shortest possible time and at the lowest cost,” said Harry Sachinis, Chairman and CEO of DEPA. “The ITGI system is good for Azerbaijan as it brings their gas to market in the quickest possible time. And it is good for Europe as it will accelerate the development of the Southern Gas Corridor, increasing European energy security by providing alternative sources of imported gas, in the shortest timeframe,” he said.
The ITGI system can be operational as early as 2013 – sooner than any other pipeline option – and is the only project that can meet the timeline demanded by the Shah Deniz II full field.
“The ITGI system is the most compelling in every respect,” said Mr Sachinis. “From a commercial standpoint, we have many prospective buyers lined up to buy capacity rights, providing a ready-made customer base. Plus we have €145 million of co-financing in place from the European Commission through the EEPR framework for the construction of Poseidon and IGB.”
The ITGI system is being positioned in its bid as the ideal first step in a phased approach to opening the Southern gas Corridor. “The ITGI system is the right choice for now and for the future. Our 10 bcma capacity closely matches the volumes that will be available from Shah Deniz II, enabling Azeri gas to be delivered to European markets as soon as it becomes available. And because the ITGI system can be scaled up to a capacity of 24 bcma as additional gas becomes available, it is the ideal first step in opening the Southern gas Corridor as other large-scale infrastructure projects, such as Nabucco, come on stream,” explained Mr Sachinis.
As the IGI-Poseidon bid was submitted, it became clear that unlike other proposed pipeline projects, all the environmental licenses required by the Italian and Greek authorities have been issued for the ITGI system.
“Upstream and Downstream transit rights have been secured according to Greek and Italian regulatory regimes and we have gained Third Party Access exemption for 8 bcma, from the Greek and Italian Authorities as well as the EU, conforming to the EU’s Third Energy Package unbundling requirements,” said My Sachinis:
The IGI-Poseidon bid also confirmed the ITGI system as the most technically mature project of the Southern Corridor, with an independent eight month Detailed Marine Survey for IGI Poseidon, the offshore section of the project connecting Greece and Italy, having been successfully completed.