BAKU, Azerbaijan, January 19. The "Trans Adriatic Pipeline AG" (TAP) consortium, Italian Snam (SRG), and Greek DESFA companies, which are transmission system operators (TSOs) of the TAP pipeline, have published a joint statement on the market tests conducted in 2021 and 2023, Trend reports via the TAP website.
The companies have notified all interested parties of the official closing of the market test for 2021, which includes necessary company submissions for possible TAP expansion.
According to an informed source, the 2021 market test was postponed because of the COVID-19 pandemic, and the second phase took place between October and December 2023. It entailed mandatory corporate applications for guaranteed gas volumes, which would provide TAP network operators with clarity on the extension of the pipeline's capacity - the European part of the Southern Gas Corridor.
"In line with Section D.1 of TAP, SRG, and DESFA Project Proposal for the second Binding Phase of the 2021 Market Test, as approved by the Italian, Greek, and Albanian National Regulatory Authorities and published in October 2023, the TSOs are hereby jointly informing the market that the 2021 Market Test is closed," the statement said.
According to the source, the second stage of this market test did not reveal guaranteed requests for gas transportation.
The official statement on the TAP website confirmed this.
"We are proceeding with the relevant projects required for making the 1.2 bcm/year incremental capacity, pursuant to the first binding phase of the 2021 market test," the statement explained.
The results of the first stage of the 2021 market test for mandatory applications were announced at the end of January 2023, indicating interest in expanding TAP's capacity by 1.2 billion cubic meters (bcm) per year.
"This first step of expansion reinforces the Southern Gas Corridor's significance for the EU's security of energy supply and paves the way for further expansions, which can be achieved through participation in the next market tests," noted the joint statement of the TSOs on January 18, 2024.
The publication reminded that TAP, SRG, and DESFA launched the 2023 market test in July last year, following the timeline of regulatory authorities in the countries through which TAP passes.
"The 2023 Market Test is still ongoing, and for the TSOs from January 19, 2024, until February 2, 2024, there is an open revision window for the non-binding phase of the 2023 Market Test between January 19 and February 2, 2024, to allow all interested parties to either submit new non-binding demand indications or revise the ones already submitted between July and August 2023 during the demand assessment phase of the 2023 Market Test," the statement pointed out.
According to an informed source, the market test for 2023 regarding mandatory applications for gas volumes in the planned expansion of the pipeline may be announced in the second half of 2024, and its results will be known at the end of this year.
"In this case, the deadline for expanding TAP's capacity in 2027, noted in the Memorandum on Energy Cooperation with the EU signed in July 2022, may be postponed indefinitely based on the volume of planned pipeline work," noted the source.
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea to Europe. The 878-kilometer-long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece, Albania, and the Adriatic Sea before coming ashore in southern Italy.
TAP facilitates gas supplies to Southeast European countries through existing and prospective interconnectors. TAP is connected to Interconnector Greece Bulgaria (IGB), which started its commercial operations in October 2022, providing Caspian gas to Bulgaria and enhancing the security of energy supplies in one more European country.
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, and decarbonization objectives.
