BAKU, Azerbaijan, July 7. Azerbaijan Gas Supply Company Limited has signed new contracts with the Trans Adriatic Pipeline (TAP) AG consortium and SNAM company of Italy for increased gas supplies via TAP, Trend reports.
As part of the binding phase of the 2021 incremental capacity process announced by TAP AG and in accordance with the project proposal published by TAP AG, SNAM and DESFA on 14 November 2022, TAP AG triggered the first level of expansion in January 2023 and will allocate 1.2 billion cubic meters (bcm) of incremental capacity per year through long term contracts starting from 2026.
In connection with this, AGSC entered into new Gas Transportation Agreements with TAP AG and SNAM for 1 bcma each, for the period 2026-2028.
Azerbaijan Gas Supply Company Limited is a special structured entity established for marketing, accounting, billing, payment and reporting of other administrative activities related to the sales of SD gas and operates on a no gain, no loss basis.
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. Its initial capacity is 10 billion cubic meters per year, expandable to 20 billion cubic meters.
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