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TAP can have positive effect on gas prices, says country manager

Oil&Gas Materials 11 December 2018 17:53 (UTC +04:00)
The Trans Adriatic Pipeline (TAP), which envisages transportation of Azerbaijani gas to Europe, can have a positive effect on gas prices.
TAP can have positive effect on gas prices, says country manager

Baku, Azerbaijan, Dec.11

By Leman Zeynalova – Trend:

The Trans Adriatic Pipeline (TAP), which envisages transportation of Azerbaijani gas to Europe, can have a positive effect on gas prices, Trend reports citing TAP’s Country Manager for Albania Michele Elia.

TAP, a project worth a total of 4.5 billion euros, is one of the most important infrastructure projects in the world, Elia said, according to a message from TAP AG consortium.

Elia pointed out that TAP project, which is now more than 80 percent complete, has ensured the creation of new jobs, investments in the countries through which it runs.

Unlike other large infrastructure projects that require public funding and have a high impact on the territory, TAP is financed entirely with private capital and is almost invisible, he added.

"TAP can also have a positive effect on prices. It is a simple law of economics: if there is only one tomato seller in the market, it will set the price. But if another seller comes with a more competitive price, it is good for the consumer,” noted Elia.

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.

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).

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Follow the author on Twitter: @Lyaman_Zeyn

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