Baku, Azerbaijan, July 25
By Leman Zeynalova – Trend:
More than 1 billion euros will be required to increase the capacity of the Trans Adriatic Pipeline (TAP) from 10 billion cubic meters per year to 20 billion cubic meters per year, Trend reports citing estimates published in the context of TAP’s market test.
Table below reports a first indicative estimation of the costs. It should be noted that indicated capacities do not consider intermediate interconnection points along the pipeline.
|
Pipeline capacity (billion cubic meters per year) |
Estimated CAPEX (million euros) |
|
10.0 |
- |
|
11.8 |
180 |
|
14.4 |
505 |
|
16.4 |
705 |
|
20.0 |
1035 |
For an expansion from the current configuration to any of the expansion steps, a minimum implementation period of 3 years shall be considered. In case of pre-order of long lead items (i.e. compressors) implementation period could be reduced to minimum 2 years.
The pipeline expansion cost and timing figures provided in TAP’s document (Technical Description of TAP Transportation System for the 2019 Market Test) are estimates.
Firstly, TAP needs to analyse the expressed demand. Following this, the relevant tendering processes and technical design need to be completed.
Further details regarding the capacity expansion cost and timing will only be available once these phases have been concluded.
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