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TAP is roadmap for further large-scale investments in Greece

Oil&Gas Materials 10 July 2020 16:07
TAP is roadmap for further large-scale investments in Greece

BAKU, Azerbaijan, July 10

By Leman Zeynalova – Trend:

The Trans Adriatic Pipeline (TAP), which envisages transportation of Azerbaijani gas to Europe, is a roadmap for further large-scale investments in Greece, said TAP Director of Corporate Services Jonathan Collingwood, Trend reports.

“TAP is a project of major significance for its host countries, for the region of southeastern Europe, and for the entire continent. TAP contributes to the diversification and security of energy supply as well as decarbonisation. Furthermore, new gas supplies will increase gas-to-gas competition, offering a more competitive environment for industry and end-consumers. As well as addressing energy poverty, this offers a cleaner environment across Europe; for example, through improved air quality,” he told Greece Investor Guide.

In Greece, TAP’s impact is both extensive and multifaceted, according to Collingwood.

“It brings strategic, geopolitical, financial, and social benefits, while also serving as a roadmap for further large-scale investments in the country. By offering exit points along its route, it additionally accommodates and supports efforts to expand the domestic pipeline network,” he added.

Collingwood pointed out that the financial benefits of TAP are clear.

“TAP is one of the largest foreign direct investments currently implemented in Greece. It contributes to the national economy in many ways. To date, the project has directly invested more than €1.4 billion in the procurement of local goods and services in the country. During construction, major supply and engineering procurement construction (EPC) contracts were awarded to Greek companies or joint ventures that included Greek companies. Additionally, we collaborated with approximately 800 domestic small and medium enterprises (SMEs), offering them both financial benefits and significant expertise. At the peak of construction activities more than 3,500 people were employed for the project, the majority of whom were locally recruited, while TAP also generated indirect employment,” he said.

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

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