The Trans Adriatic Pipeline (TAP) AG has confirmed that following the completion of the first binding bidding phase of the 2021 Market Test, the Company will trigger the first level of capacity expansion, Report informs referring to the TAP website.
Following the closing of the binding bid submission window on January 22, 2023, TAP will now trigger the first level of expansion and allocate 1.2 billion cubic meters (bcm) of incremental capacity per year through long term contracts starting from 2026. TAP’s expansion capacity is offered through regular market tests in an open, transparent and non-discriminatory way.
TAP’s initial capacity can be expanded in steps to reach at least 20 bcm per year.
A second binding phase is expected during 2023 and interested parties will be able to submit their bids. As these regular open seasons are structured to test the market requirements in a gradual process, TAP aims at doubling the pipeline’s capacity by 2027.
“We are pleased to start expanding TAP’s capacity, which can incrementally be increased up to at least 20 bcm per year. Having now closed the first binding phase, we intend to launch the second binding phase in the second half of the year to further enhance Europe’s security of supply and market liquidity”, said Luca Schieppati, TAP’s Managing Director. “New volumes of hydrogen and other renewable gases could also be transported through TAP’s capacity expansion to foster long-term sustainability and enable energy transition in the region”, he added.
TAP reiterates its firm commitment to its role both within the RePowerEU plan, as well as the EU-Azerbaijan Memorandum of Understanding on a strategic partnership in the field of energy, whereby the Southern Gas Corridor capacity would be expanded to deliver at least 20 bcm to the EU annually by 2027.
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani 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 facilitates gas supplies to South Eastern 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, enhancing security of energy supplies in one more European country. 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 its decarbonization objectives.
TAP’s shareholding is comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
https://report.az/en/energy/tap-announces-first-binding-bidding-phase-results-for-gas-pipeline-expansion/