BAKU, Azerbaijan, Sept.30
By Leman Zeynalova - Trend:
The Trans Adriatic Pipeline (TAP), which supplies Azerbaijani gas to Europe, makes Italy less vulnerable to gas price hike, Luca Schieppati, TAP Managing Director, said at the Italian Energy Summit, Trend reports.
The gas price in Europe yet again break historic record during the September 30 trading session and rose over $1100 per 1,000 cubic meters, according to the ICE data on Thursday morning. The cost of November futures on the TTF hub in the Netherlands reached $ 1101.6 per 1,000 cubic meters or 91.845 euros per MWh (based on the current exchange rate of the euro to the dollar, prices for ICE are presented in euros per MWh).
“Since the end of 2020, the gas in Italy has risen by 330-350 percent due to the imbalance between supply and demand. However, Italy is less vulnerable to higher gas prices than other EU countries thanks to the diversified sources, including TAP and storage. Gas must help support the energy transition. We must avoid ideological approaches that can paradoxically slow down the transition to the advantage of more polluting fuels: every element that helps decarbonize must be considered,” he said.
Schieppati noted that renewables have not yet grown enough and unfortunately a lot of coal continues to be used.
“It is still necessary to invest in all renewables and to adopt a transition strategy that does not affect businesses and weak sections of the population. We have launched a study to evaluate the feasibility of transporting hydrogen mixed with gas and have undertaken campaigns to make TAP even more sustainable,” he added.
As the European section of the Southern Gas Corridor, TAP has the capacity to transport approximately 10 billion cubic meters of gas per annum (bcm/a) to several markets in Europe. The pipeline is also designed with the potential to expand its throughput capacity up to 20 bcm/a.
TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.
TAP’s shareholding is comprised of bp (20 percent), SOCAR (20 percent), Snam (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).
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