BAKU, Azerbaijan, Jan.12
By Leman Zeynalova – Trend:
Russian gas may supply the possible expansion of the Trans Adriatic Pipeline (TAP), which was launched on December 31, 2020, Trend reports with reference to Wood Mackenzie.
On 15 November 2020, the Trans Adriatic Pipeline (TAP) began commercial operations. TAP – the final section of Southern Gas Corridor from Azerbaijan – will ultimately deliver 10 bcm per year from BP’s Shah Deniz Phase Two megaproject in the Caspian Sea.
Commissioning of TAP’s initial capacity follows four and a half years of construction, EUR 4.5 billion of capex.
“This is a long-awaited milestone for all stakeholders – investors, upstream source of supply, host governments and offtakers alike. TAP has launched in a turbulent European market environment. But it is a long-term project with expansion plans and wide-ranging significance,” said Wood Mackenzie.
The company believes that the project’s upstream value, at least initially, is driven by condensate sales.
Regarding the dividends that TAP will bring to Europe, Wood Mackenzie says that TAP carves out a distinctive path, with a diverse group of offtakers.
“For Italy, it is a milestone for the PSV hub and south-to-north flows. For Bulgaria and Greece, it is a major shift for concentrated gas markets. TAP expansion outlook will be confirmed in 2021. Russian gas may supply expansion. TAP expansion should be attractive, including for its initial shipper.”
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP will facilitate gas supplies to South Eastern European countries through prospective interconnectors. In particular, Bulgaria will be able to cover up to 33% of its total gas demand through TAP after the completion of the Interconnector Greece Bulgaria (IGB). TAP’s exits in Greece and Albania together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.
As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.
TAP’s shareholding is comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
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