Caspian Report - Issue: 07 - Spring 2014

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Davide Tabarelli 48 evaluate potential environmental and cultural heritage risks. According to Article 21 of the same Decree, an EIA procedure may be preceded by a period of consultation (so called “scoping”), in which the proposers of the project agree with relevant authorities on the documents to be submitted for the following procedural steps. This phase is expected to take up to 60 days; for the TAP project, it took more than 11 months. In fact, the TAP consortium began consultation with the MINBAC in May 2011; the Ministry issued an opinion only 9 months later (February 2012). Meanwhile, the TAP consortium begun to prepare the Environmental Impact Study, which was presented on March 15 th 2012. In the period leading up to this first submission, a total of five alternative route options were investigated: the San Foca route was concluded to represent the optimal solution in environmental, technical, socioeconomic and safety terms. This solution brings the pipeline ashore near San Foca, and places the Pipeline Receiving Terminal (PRT), the facility to connect TAP into the Italian gas network, in Melodugno. This route was presented by the TAP consortium to the Italian authorities as the optimal solution. Inevitably, the TAP consortium had to revise its study in order to account for Ministry views, issued as part of the scoping phase. In December 2012, MINBAC gave the TAP Consortium 9 months to consult with local authorities and local NGOs on the potential environmental and social impacts of the project. In September 2013, the Consortium came up with a new document, which addressed some of the comments received during the new consultation period. Under the revised plan, the pipeline still comes ashore at San Foca, but the landfall site was shifted slightly to diminish the impact on the seashore, to further prevent any damage to the area’s protected Posidonia sea grass, and to avoid any visual impact. A 1500 m micro tunnel 10 meters underground was also proposed. Furthermore, the Consortium decided to reduce the size and to optimize the location of the PRT in Melendugno, in order for it to conform with the typical configuration of local structures such as farm buildings, thereby reducing its visual impact. the TAP consortium made it clear that San Foca remained the best option for the pipeline to come ashore. The documents prepared by the TAP Consortium were considered by the main national (MATTM, Ministry of Tourism) and local (Apulia Region, Lecce Province, Melendugno Municipality) authorities. In January 2014, Apulia Region issued a negative (non-binding) opinion on the EIA procedure, as it had already done in September 2012. This decision was based on “landscape-issues”, and the regional authorities requested the Consortium to consider another landfall site for the pipeline. In March 2014, MINBAC and MATTM requested some integration to the Consortium submission of September 2013: the Ministries required the company to

Signing ceremony of host government agreement in Athens on June 26, 2013. submit an in depth evaluation of alternative routes for the pipeline. In particular, some suggested that given that another pipeline (ITGI) is coming ashore near Otranto, around 20 km south of San Foca, and that it has already obtained the relevant authorisations, the TAP pipeline landfall site could be moved near Otranto. However, in its April 2014 delivery, the TAP consortium made it clear that San Foca remained the best option for the pipeline to come ashore; in the same document, the consortium provided a reasoned reply to the criticisms made by the Apulia Region authorities and other stakeholders. The difficulties faced by the consortium in obtaining the relevant authorisations and in rallying support for the project from local and national authorities are in contrast to the relevance of the infrastructure. In fact, the Italian government and the EU have repeatedly declared the TAP gas line to be of “strategic importance”. The reason is quite simple: it adds a new supply route to Europe, different from the traditional ones, like Russia, North Africa or even the North Sea, where reserves are falling very quickly. There is no need for any expertise in energy strategy or economics to understand that when you are highly dependent on an imported commodity, it makes sense to diversify supply sources in order to lower the risks of a sudden interruption, and also to generate lower prices through competition. It would be also the first time that gas from the former Soviet Union, from the Azerbaijani part of the Caspian Sea, is delivered to Europe without being absorbed into the Russian system of transport grids and, more importantly, commercial contacts. It is also important to note that the project is competing with future supply from Russia without posing any real threatening to Moscow. Europe is likely to need, if its economy recov- 49 CASPIAN REPORT, SPRING 2014

Signing<br />

ceremony of<br />

host government<br />

agreement in<br />

Athens on June<br />

26, 2013.<br />

submit an in depth evaluation of alternative<br />

routes for the pipeline. In<br />

particular, some suggested that given<br />

that another pipeline (ITGI) is coming<br />

ashore near Otranto, around 20 km<br />

south of San Foca, and that it has already<br />

obtained the relevant authorisations,<br />

the TAP pipeline landfall site<br />

could be moved near Otranto. However,<br />

in its April <strong>2014</strong> delivery, the<br />

TAP consortium made it clear that San<br />

Foca remained the best option for the<br />

pipeline to come ashore; in the same<br />

document, the consortium provided a<br />

reasoned reply to the criticisms made<br />

by the Apulia Region authorities and<br />

other stakeholders.<br />

The difficulties faced by the consortium<br />

in obtaining the relevant<br />

authorisations and in rallying support<br />

for the project from local and<br />

national authorities are in contrast<br />

to the relevance of the infrastructure.<br />

In fact, the Italian government and<br />

the EU have repeatedly declared the<br />

TAP gas line to be of “strategic importance”.<br />

The reason is quite simple: it<br />

adds a new supply route to Europe,<br />

different from the traditional ones,<br />

like Russia, North Africa or even the<br />

North Sea, where reserves are falling<br />

very quickly. There is no need for any<br />

expertise in energy strategy or economics<br />

to understand that when you<br />

are highly dependent on an imported<br />

commodity, it makes sense to diversify<br />

supply sources in order to lower<br />

the risks of a sudden interruption,<br />

and also to generate lower prices<br />

through competition. It would be also<br />

the first time that gas from the former<br />

Soviet Union, from the Azerbaijani<br />

part of the <strong>Caspian</strong> Sea, is delivered to<br />

Europe without being absorbed into<br />

the Russian system of transport grids<br />

and, more importantly, commercial<br />

contacts.<br />

It is also important to note that the<br />

project is competing with future supply<br />

from Russia without posing any<br />

real threatening to Moscow. Europe<br />

is likely to need, if its economy recov-<br />

49<br />

CASPIAN REPORT, SPRING <strong>2014</strong>

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