Baku, Azerbaijan, April 26
By Leman Zeynalova – Trend:
The Trans Adriatic Pipeline (TAP) is a new supply route and source of gas, which in turn enhance diversification of supplies for Europe, Vugar Veysalov, TAP Head of External Affairs told Trend in response to a question whether the renewal of gas supply contract between Italy and Algeria will somehow affect TAP’s significance.
“We do not comment on other pipeline systems. TAP is a highly strategic gas infrastructure project, which contributes to Europe’s energy diversification and decarbonization objectives. TAP represents both a new supply route and source of gas, which in turn enhance diversification of supplies and strengthen the continent’s overall energy security,” he added.
Eni and Sonatrach signed a Memorandum of Understanding (MoU) to confirm their willingness to come soon to the renewal of the gas supply contract and the transportation arrangements through the pipeline crossing the Mediterranean Sea (Transmed) for the forthcoming years. Capacity on the Transmed pipeline is largely controlled by Eni.
This MoU represents a further step towards the strengthening of the long term relationship between the two companies and set the basis of a new contractual framework taking into account the changes in the market conditions.
Around 90 percent of natural gas consumption in Italy comes from imports.
Earlier, TAP AG said that Italy’s gas supply contracts with Algeria, the Netherlands and Russia will expire by 2020 and therefore, delivery of gas via TAP to Italy will be timely.
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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