Baku, Azerbaijan, July 26
By Elena Kosolapova - Trend:
The item equity investments of Italian Snam company referring to Trans Adriatic Pipeline AG (TAP) hit €193 million in the first part of 2017, the company said in consolidated half-year report published July 26.
It includes the increase of approximately €20 million, relating to the future share capital increase of TAP, which Snam is obliged to invest in in proportion to the shareholding owned, by virtue of the agreements signed during the acquisition of the equity investment.
Snam organized the payment for 7 July 2017.
Financial receivables of the company rose by €96 million to €309 million compared with 31 December, 2016. Financial receivables held for operations relate to Snam's share of the shareholders' loan granted to the associate company Trans Adriatic Pipeline AG (TAP).
According to the contractual agreements drawn up, the shareholders are responsible for the funding of the project, by way of the percentage shareholding, until the gas pipeline comes into service.
Any expansion of the capacity is subject to an economic feasibility study and therefore the verification of the benefits for TAP, also in conformity with the decision of the regulatory authorities to opt out, Snam said.
TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.
The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.
TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).
TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).