TAP ensures cash flow item for Enagás of 415 million euros

Oil&Gas Materials 27 February 2019 13:56 (UTC +04:00)

Baku, Azerbaijan, Feb.27

By Leman Zeynalova – Trend:

The return of investments made after the close of financing of the Trans Adriatic Pipeline (TAP) project in December 2018 resulted in a cash flow item for Spanish Enagás, one of the project’s shareholders, of 415 million euros, Trend reports with reference to the company’s message.

“This underscores the trust shown by financial institutions in a key infrastructure project for the development of European energy, considered a Project of Common Interest by the European Union,” said the company.

In line with its strategy of asset rotation, Enagas said it sold its 50 percent stake in the Swedish operator Swedegas in 2018. This sale resulted in a cash flow item for Enagás of more than 100 million euros, reads the report released by Enagas.

“One of the main investments made by Enagás in 2018 was the company’s contribution to the construction of the Trans Adriatic Pipeline (TAP), a project in which Enagás holds a 16 percent stake, and which is key to guaranteeing the security of Europe’s energy supply. Construction currently exceeds 85 percent,” said the Spanish company.

Other significant investments were the acquisition by the consortium comprising Enagás, Snam and Fluxys of a 66 percent stake in the Greek natural gas transmission operator DESFA, and the investments made in the Quintero LNG regasification plant in Chile, said the company.

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).