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TAP says new contracts signed for capacity allocation from 2026

Oil&Gas Materials 23 February 2023 11:54 (UTC +04:00)
TAP says new contracts signed for capacity allocation from 2026
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, Feb.23. New contracts have already been signed for allocation of the Trans Adriatic Pipeline’s (TAP) capacity from 2026, TAP AG consortium told Trend.

“Following the closing of the binding bid submission window on 22 January 2023, TAP has now triggered the first level of expansion and allocated 1.2 billion cubic meters (bcm) of incremental capacity per year through long term contracts starting from 2026. TAP will add one compressor unit (ca 15MW) to the existing compressor station at Kipoi, Greece and upgrade the facilities there,” said the consortium.

The table below shows the exact capacity allocation and start and end of bookings per interconnection points. New contracts have already been signed accordingly.

Following the completion of the first binding bidding phase of the 2021 Market Test, the TAP consortium will trigger the first level of capacity expansion.

Following the closing of the binding bid submission window on 22 January 2023, TAP will now trigger the first level of expansion and allocate 1.2 billion cubic meters (bcm) of incremental capacity per year through long term contracts starting from 2026. TAP’s expansion capacity is offered through regular market tests in an open, transparent and non-discriminatory way. TAP’s initial capacity can be expanded in steps to reach at least 20 bcm per year.

A second binding phase is expected during 2023 and interested parties will be able to submit their bids. As these regular open seasons are structured to test the market requirements in a gradual process, TAP aims at doubling the pipeline’s capacity by 2027.

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP facilitates gas supplies to South Eastern European countries through existing and prospective interconnectors. TAP is connected to Interconnector Greece Bulgaria (IGB) which started its commercial operations in October 2022, providing Caspian gas to Bulgaria, enhancing security of energy supplies in one more European country. TAP’s exits in Greece and Albania, together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.

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