EIB: Financing TAP remains conditional upon complying with environmental standards (Exclusive)
Baku, Azerbaijan, Feb.8
By Leman Zeynalova – Trend:
Any financing by the European Investment Bank for the Trans Adriatic Pipeline (TAP) remains conditional upon TAP being built and operated in line with the EIB’s environmental and social standards, the Bank spokesperson told Trend.
The spokesperson noted that the Southern Gas Corridor (SGC) is a key project for the EU energy security policy.
“TAP and TANAP are about developing a new source of competitively priced gas for the EU market to increase supply diversity and security of supply. This is necessary in an environment where the dependency of the EU on gas imports is growing,” he said.
The spokesperson pointed out that the EIB is following the lead of the EU Member States and the European Commission by supporting TAP and TANAP.
“MDBs (multilateral development banks) like the World Bank, the EBRD and the AIIB have approved loans for the SGC. All Member States have approved EU financial assistance to the preparation and development of the projects under the Connecting Europe Facility. Gas demand in the EU is projected to decline over the coming decades. Domestic gas resources, however, are projected to decline even faster. Accordingly, the EU is committed to secure energy supply through diversification projects, such as the SGC.”
In February 2018, the European Investment Bank approved a 1.5 billion euro loan for the Trans-Adriatic Pipeline.
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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