TAP to ensure higher production capacity in Albania’s energy sector: S&P
Baku, Azerbaijan, Feb. 4
By Leman Zeynalova - Trend:
The Trans Adriatic Pipeline (TAP), which envisages transportation of Azerbaijani gas to Europe, will ensure higher production capacity in Albania’s energy sector, Trend reports citing Standard & Poor’s.
“TAP, as well as construction of a hydropower plant have raised the economic growth rates in recent years and will likely be completed in 2019. The completion of these projects will result in higher production capacity in the energy sector,” said a report released by S&P.
The rating agency considers that strong domestic demand, with rising consumption, will be a primary growth engine over the next years, also aided by rising employment levels.
“Stronger fiscal consolidation will lead the government’s net debt stock to decline to about 60 percent of GDP by the end of 2022. Albania’s real GDP will expand by nearly 4 percent on average through 2022.”
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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