Azerbaijani Minister of Energy Parviz Shahbazov has met with Luca Schieppati, managing director of TAP AG - Trans-Adriatic gas pipeline operator, report.az informs referring to the Azerbaijani Energy Ministry.
The participants in the meeting praised the timely completion of the work on the TAP project, noting that the commencement of the pipeline’s commercial operation was an essential step in the commissioning of the Southern Gas Corridor.
The sides stressed that TAP, as another energy link connecting Azerbaijan with Europe for a long time, will strengthen the country’s strategic role in energy security, cooperation, and sustainable development. They also underlined that project is of strategic and economic importance for Europe, provides reliable access to a new source of natural gas, plays an essential role in energy security, diversification of supplies, as well as in reducing carbon emissions.
The sides exchanged views on the expansion of the TAP project - the increase of the pipeline’s total capacity to 20 bcm, market tests that would allow expressing the interests of natural gas suppliers, the fight against climate change, the ‘Green Agreement’ on environmental protection and the restoration of energy markets.
The supply of Azerbaijan’s commercial gas to Europe through the Trans-Adriatic Pipeline started on December 31 last year.
For the first time since the construction of the pipeline network connecting all the old continent countries, Italy has exported gas to one of the neighboring countries.
The TAP will also supply North Macedonia with gas.
The TAP transports natural gas from the Caspian region to Europe by connecting to the Trans Anatolian Pipeline (TANAP). TAP travels through Greece and Albania, under the Adriatic Sea, and comes ashore in Italy.
The TAP may contribute to gas delivery to South East Europe thanks to interconnectors set to be built in the future, with Bulgaria intended to meet its 33% of needs. The TAP interconnectors will allow Azerbaijan to supply European countries with gas and enjoy new opportunities.
Since 31 December 2020, a total of 10,9 mln cubic meters of Azerbaijani gas has been transported to Europe.
TAP’s shareholders include BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
In 2021, Azerbaijan's giant Shah Deniz field gas started flowing to the EU. The Southern Gas Corridor (SGC) aims to develop gas supply routes passing through the Southern Caucasus and Turkey to supply gas from the region to Europe. The Georgian PM Giorgi Gakharia defined this fact as a tremendous step forward.
The SGC comprises the key components as follows: the South Caucasus Pipeline Expansion Project (SCPX), the Trans-Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP).
Georgia is a host country in the SGC, with this implying that following the corresponding agreements, Georgia will get the SGC gas at a considerably reduced rate. The options contract enables the country to get around 5% of gas passing through it annually. The deal is valid before 2066. The additional gas purchase and sale agreement is in force until 2026. In accordance with the agreement, Georgia will receive around 500 mln cubic meters of gas annually.
In 2021, Georgia is set to receive 1.014 bln cubic meters of gas in exchange for allowing Azerbaijani gas to pass through its territory. This year, the volume of additional gas for Georgia will amount to 508.7 mln cubic meters, with this surpassing the volume of gas (888.6 mln cubic meters) Georgia was supplied by in 2020 via the SGC by 126 mln cubic meters.
