Greece, Italy, Albania sign gas pipeline deal

ATHENS: Greece, Italy and Albania signed an agreement in Athens on Wednesday to support a pipeline project expected to bring natural gas from the Caspian Sea to Europe.

"The importance of this project will go beyond the borders (of the three countries) to establish the safety of Europe's energy supply," said Greek Prime Minister Antonis Samaras who was present at the signing ceremony.

The inter-governmental agreement regarding the Trans Adriatic Pipeline (TAP) was signed by Greece's Foreign Minister, Italy's Economic Development Minister and Albania's Deputy Prime Minister and Minister of Economy, Trade and Energy.

Representatives from Azerbaijan and the TAP consortium were also present.

"The common interests of the three countries and the development of the opportunities that are on offer...can have very favourable consequences that will go beyond the region," Samaras said.

TAP is expected to boost Europe's energy security by creating a southern route for natural gas coming from the Caspian Sea and bypassing Russia.

In the last six years, Russia has twice blocked gas deliveries to Europe across Ukraine, because of disagreements over debts and gas prices.

TAP is expected to transport gas from Azerbaijan's Shah Deniz II field (operated by energy giant BP) to northern Greece and Albania, before making an underwater crossing of the Adriatic and reaching southern Italy.

The pipeline will be 800 kilometres (497 miles) long with 478 kilometres (297 miles) running on Greek soil.

The TAP consortium consists of Swiss power group Axpo, Norway's Statoil and Germany's E.ON Ruhrgas.

The project should attract 1.5-billion-euro ($2 billion) investments to Greece and create 2,000 job openings, Samaras said.