Axpo to maybe reduce its stake in the Trans Adriatic Pipeline (TAP) project

In a recent interview, Axpo has said it could reduce its stake in the newly selected Trans Adriatic Pipeline (TAP), which aims to carry Azeri gas to Europe, to limit the Swiss state-owned firm's exposure to risks in the gas market.

"We could lower our stake from currently 42.5% to a single-digit participation," Axpo Chief Executive Heinz Karrer said in an interview with a Swiss newspaper, adding limiting costs as the project is developed was the main reason for any cutback.

"The project will generate further costs now. Only a small part of them should occur at Axpo in order to keep the risks of our commitment at a manageable level even in an extreme case," he said.

Late last week, Azerbaijan's state energy company SOCAR, and its partners in the Shah Deniz II gas field including BP and Statoil formally selected the TAP project to deliver gas to Europe from 2019, defeating the rival Nabucco West pipeline project.

Last week when the pipeline project was formally selected, Karrer released a statement saying: "I am pleased that the TAP has been selected to transport gas from Shah Deniz II to Europe. This decision is the reward for ten years of project planning. It is an honour for Axpo to have been able to contribute to the successful initiation and development of such a geopolitically important project. I especially want to thank the Swiss government for supporting this important project through diplomatic channels together with European circles."

The company has said it wants to use the Azeri natural gas to power its own gas-fired combined-cycle power plants in Italy and for sales to selected markets in Europe.

Read the article online at: https://www.worldpipelines.com/business-news/01072013/axpo_to_maybe_reduce_its_stake_in_the_trans_adriatic_pipeline_project/