Rystad Energy: TAP to ensure gas competitive market in Europe

13 October 2020 18:00 (UTC+04:00)

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The Trans Adriatic Pipeline (TAP) will ensure a gas competitive market in Europe, Rystad Energy’s upstream analyst Swapnil Babele told Trend.

TAP will play an important role in Europe’s energy security, it will provide south European countries with a reliable and stable gas supplies, the additional gas coming to Europe will make the gas market competitive, noted the analyst.

“Italy, which imports majority of its gas from Russia, Algeria followed by Qatar, Libya and Norway, for some time has been planning to diversify its energy sources and be less reliant on Russian gas. Azerbaijani gas through TAP will not only diversify Italy’s gas sources but will also provide security against other gas exporters. It will give leverage to Italy to bargain a better gas price from other suppliers, resulting in a gas competitive market,” said the expert.

Babele noted that TAP pipeline can also allow gas from Italy to be diverted to southeast Europe, making Italy a regional gas hub for south European countries (Greece, Bulgaria …)

“Feed of gas into the European market from a non-Russian source is of interest as Europe would need all the gas it can get, and cheap piped gas is a lucrative alternative,” he added.

After almost four and a half years since the start of construction, the Trans Adriatic Pipeline is substantially complete.

The TAP pipeline has been filled with natural gas from the Greek-Turkish border up to the pipeline receiving terminal in Southern Italy.

TAP is currently finalizing preparations for launching the commercial operations and offering capacity to the market in alignment with the adjacent TSOs.

The Interconnection Point between TAP pipeline and the natural gas transmission system of Snam Rete Gas in Puglia (Italy) is expected to be completed and ready to transport gas by mid-November 2020.

TAP will transport natural gas from the giant Shah Deniz II 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’s routing can facilitate gas supply to several South Eastern European countries. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian gas 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 percent), SOCAR (20 percent), Snam (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).