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Snam reveals volume of equity investments in TAP AG

Oil&Gas Materials 8 November 2018 12:44 (UTC +04:00)

Baku, Azerbaijan, Nov.8

By Leman Zeynalova – Trend:

The volume of equity investments made by Italy’s Snam S.p.A. company in TAP AG, the consortium for construction of the Trans Adriatic Pipeline (TAP) project, envisaging transportation of Azerbaijani gas to Europe stood at 244 million euros in the first nine months of 2018, Snam said in its report.

“The item equity investments (€1,612 million) essentially comprises: (i) the valuation of equity investments using the equity method referring to the companies Trans Austria Gasleitung GmbH-TAG (€495 million), Teréga Holding S.A.S.17 (€485 million), Trans Adriatic Pipeline AG (TAP) (€244 million), Italgas S.p.A. (€168 million), AS Gasinfrastruktur Beteiligung GmbH (€120 million) and Interconnector UK (€60 million)18; (ii) the fair value measurement of the minority interests in the company Terminale GNL Adriatico S.r.l. (€40 million),” said the report.

Snam confirms a significant investment plan of around €5.7 billion in the period 2018-2022, of which €0.9 billion has been invested in 2018.

“The Plan facilitates the strengthening of the transportation network, aiding the completion of the creation of additional reverse flow capacity towards other European countries, and opening new flows from the Caspian region through the TAP gas pipeline,” said the Italian company.

TAP worth 4.5 billion euros 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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