Greece signed the host government agreement for the Trans Adriatic Pipeline (TAP) natural gas project on Wednesday, as an official announcement on Azerbaijan's choice for the path to transport natural gas to Western Europe is due on Friday.

Finance Minister Yannis Stournaras and Environment, Energy and Climate Change Deputy Minister Asimakis Papageorgiou on behalf of the Greek side and TAP Managing Director Kjetil Tungland signed the deal in Athens.

The agreement was signed amidst local media reports that members of a visiting delegation of Azerbaijan's Shah Deniz Consortium told Greek Prime Minister Antonis Samaras during a meeting in Athens on Wednesday that Azerbaijan has chosen TAP for carrying its natural gas to Western Europe via Greece, Albania and Italy, over the rival Nabucco West project which would pass through Bulgaria, Romania and Hungary to reach Austria.

"Greece becomes an energy junction for the wider region," Stournaras said, addressing the event.

Greek officials expect that TAP's choice by Baku will boost Greece's energy profile, attracting further investments which will help the country counter recession and exit sooner the debt crisis which brought it at the brink of bankruptcy.

The Greek Foundation for Economic and Industrial Research (IOBE) has estimated that the construction of the 800-kilometer TAP pipeline which could deliver some 10 billion cubic meters of Azeri gas per year to Italy via Greece will attract some 1.5 billion euros worth ($1.96 billion) investments and create up to 12,000 job positions over the next five years.

According to the IOBE survey, TAP could generate further 18 billion euros of added value to Greece's economy during the course of its operation.