Baku, Azerbaijan, June 5
By Leman Zeynalova – Trend:
The consortium for construction of the Trans Adriatic Pipeline (TAP) remains confident that it will secure external funding for the project, TAP President Walter Peeraer said in an interview with Trend.
“There is a strong market rationale for our project. Europe needs new sources of natural gas to meet its long-term demand, fuel economic recovery and diversify energy supply. Gas – as the cleanest fossil fuels – will continue to play a key, strategic role in the energy mix for decades to come. Therefore, we remain confident that TAP will secure external funding for the project,” he said.
Peeraer pointed out that as a highly strategic energy project for the European Union, TAP is recognized as a Project of Common Interest (PCI) by the EU Commission and EU member states.
He recalled that in February 2018, the European Investment Bank (EIB) decided to grant TAP a loan of 1.5 billion euros. This is in line with TAP’s project financing strategy, added TAP president.
“Additionally, TAP expects to secure funding from a number of multilateral institutions, such as the European Bank for Reconstruction and Development, as well as Export Credit Guarantee Agencies of a number of OECD (Organization of Economic Co-operation and Development) countries involved in the supply of goods and services. In addition, a large proportion of TAP’s financing is foreseen to include commercial lenders,” said Peeraer.
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).
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