The Memorandum of Understanding (MoU) accelerates the completion of the ITGI Project (Interconnection Turkey-Greece-Italy) as a first phase of the Southern Gas Corridor, a strategic infrastructure for Europe’s energy security
Ankara, 17 June, 2010 – Edison, the Italian leading power and gas company, Depa, the Greek state gas company, and Botas, the Turkish state gas and oil transportation and gas trade company have signed today the MoU which draws the framework for the transit through Turkey of the natural gas for the ITGI pipeline (Interconnection Turkey-Greece-Italy), the first European realization of the so called “Southern Corridor” recognized by the EU as “Project of European Interest” in the European Recovery Plan with a proposed financing of 100 million Euro.
The MoU defines the general terms and conditions for the gas transit for the ITGI Project through Turkey. This includes usage of Botas existing capacity up to the Greek border for the gas requested by the ITGI pipeline.
The MoU strengthens the partnership among Edison, Depa and Botas in many ways including the evaluation of participation of Botas in IGI Poseidon SA, a company equally owned by Edison and Depa and responsible for the construction of the offshore pipeline between Greece and Italy (namely the Poseidon pipeline), and, together and in parallel, the evaluation of participation by Edison and Depa in the necessary upgrades on the Turkish grid to enable the transit of gas volumes for ITGI.
“Today’s agreement is a big step forward for ITGI because it completes the framework for the transit in Turkey and enables us to speed up the finalization of the gas contract with Azerbaijan”, said Roberto Potì, Executive Vice President in Edison. “ITGI is able to open in short term the Southern Corridor, thus enabling the export of Azeri gas production to Europe. The pipeline represents a strategic infrastructure which will significantly increase the European energy security as it will be the first link with the Caspian area where about 20% of world’s gas reserves are located.”
“This agreement extends and deepens our relationship with BOTAS and EDISON, further leverages the existing Turkey-Greece Interconnector, and creates the immediate opportunity to bring Caspian and Middle East gas to Europe through the existing infrastructure as well as through the planned ITGI Pipeline, thus enhancing European energy security” said Harry Sachinis, Chairman and CEO of DEPA.
“With the signing of today’s MoU we once more underlined Turkey’s unique role for the interconnection of Eastern rich gas reserves with Europe’s growing demand”, stated Fazıl Şenel Chairman of Board and General Manager of BOTAŞ. “With this MoU our companies will go on developing possible transit options for Southern Europe within the framework of the Intergovernmental Agreement signed by Turkey, Greece and Italy in June 2007. We give utmost importance to all such projects including the ITGI aiming to transit Turkey and we always stress the fact that Europe will be in need of all the gas to be carried by these complementary projects in the coming future”
Background information on the Southern Corridor ITGI (Interconnector Turkey-Greece-Italy)
ITGI pipeline comprises the following sections:
– the national Turkish gas grid which will be upgraded in order to enable the transit of the volumes to Greece and Italy;
– the Interconnection Turkey-Greece (ITG), a 36″ pipeline completed in 2007;
– the Interconnection Greece-Italy (IGI), to be built. It will have a transport capacity of 8 billion cubic meters of gas a year and 800 km long. The pipeline includes two sections: IGI Poseidon (200 km offshore pipeline across the Ionian Sea under development by IGI Poseidon SA, a Joint Venture by Edison and Depa) and IGI Onshore (600 km onshore, under development by Desfa, a company controlled by Depa and owner of the Greek Transmission System)
The ITGI represents a new route of supply for the European energy system, able to enhance security and increase the competition on the EU’s gas market. The EU acknowledged the strategic relevance of the ITGI as a Project of European Interest and included it among the Southern Gas Corridor Projects of the announced European Recovery Plan with a proposal of 100 million Euro of financing.