The three-year agreement will enable both organisations to co-ordinate their activities and exchange technical information. Trans Adriatic Pipeline AG (TAP) and Plinacro already individually support the security of supply and diversification of gas resources in the region.

TAP is planning to construct a natural gas pipeline that will connect Greece with Italy, via Albania and the Adriatic Sea. The pipeline is part of the European Union-designated Southern Gas Corridor, which will link Caspian gas sources to Europe and provide significant reverse flow capacities. At 520 km, TAP is the shortest and more cost-efficient of the proposed pipelines in this corridor.

Plinacro operates the Croatian national natural gas pipeline system. It plans to enter new South European markets and is promoting the 516 km Ionic Adriatic Pipeline, which aims to bring major energy security and economic benefits to the region.

Under the terms of the MOUC, a joint working group will be established immediately to further evaluate areas of potential co-operation, ranging from the alignment of overall schedules and sharing of best practice, to facilitating the mutual understanding of each project’s technical requirements. This will include capacity needs, new construction and upgrades of existing infrastructure, the co-ordination of maintenance, and environmental and social impact assessments.

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Plinacro’s President of the Board, Jerko Jelić-Balta, said “Improving the reliability and diversification of gas supplies in South East Europe is a major strategic imperative for the region. To realise such an ambition requires mutual understanding, co-operation and support. This MOUC is an important milestone in that process, providing a framework and forum for co-ordinating our activities and exchanges of information with TAP, to the benefit of both parties.”

TAP shareholders include Switzerland’s EGL with a 42.5 per cent interest, Norway’s Statoil with a 42.5 per cent interest, and Germany’ E.ON Ruhrgas with a 15 per cent interest.