Azernews.Az

By Mirsaid Ibahimzade

The Trans Adriatic Pipeline (TAP), which envisages transportation of Azerbaijani gas to Europe, has received Project Finance International (PFI) award, Trend reports citing the Southern Gas Corridor CJSC.

On 6 February 2019, Project Finance International (PFI) hosted an annual gala dinner in London, UK to celebrate the announcement of 2018 PFI Award winners.

PFI is the leading publisher of global energy and infrastructure finance news, data and analysis. Among the winners of prestigious award was the Trans Adriatic Pipeline (TAP) project which received Europe Oil & Gas Deal of the Year award for the EUR 3.9 billion project financing that it closed in late 2018.

EUR 3.9 billion project financing of TAP was the largest project finance agreed for a European infrastructure project in 2018. The financing is provided by a large group of commercial banks and IFIs. Part of the financing is covered by the export credit agencies. SGC CJSC acts as one of the guarantors of the loan in the transaction (counter-guaranteed by a guarantee from the Republic of Azerbaijan) for the 20 percent share that it holds in Trans Adriatic Pipeline AG (TAP AG) and continues to provide required equity financing to TAP AG pro-rata to its equity share.

TAP project, worth 4.5 billion euros, is one of the priority energy projects for the European Union (EU). The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy to connect to the Italian natural gas network.

The project is currently in its construction phase, which started in 2016.

Once built, TAP will offer a direct and cost-effective transportation route opening up the vital Southern Gas Corridor, a 3,500-kilometer long gas value chain stretching from the Caspian Sea to Europe.

The pipeline would be supplied by natural gas from the second stage of the Shah Deniz (Azerbaijan) gas field development in the Azerbaijani section of Caspian Sea through the South Caucasus Pipeline and the Trans Anatolian Pipeline (TANAP). Since it will enhance energy security and diversify gas supplies for several European markets, the TAP project is supported by the European institutions and seen as a "Project of Common Interest" and a part of the Southern Gas Corridor.

In June 2013, the project was chosen as a route for gas from Shah Deniz 2 over the competing Nabucco West project. Later in 2013, BP, SOCAR, Total, and Fluxys became shareholders of the project.

Trans Adriatic Pipeline AG is a joint venture company registered in Baar, canton Zug, Switzerland, with a purpose of planning, developing and building the TAP pipeline. The Managing Director of the company is Luca Schieppati.

TAP shareholders include BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

---

Follow us on Twitter @AzerNewsAz