EBRD approves up to €500mn loan for Trans Adriatic Pipeline

The EBRD (European Bank of Reconstruction and Development) has approved a loan up to €500mn for the construction of the Trans Adriatic Pipeline (TAP). The 878 km pipeline will start at the Greek/Turkish border, cross Albania and, after passing under the Adriatic Sea, will end in southern Italy. It constitutes the final leg of the Southern Gas Corridor and will transport gas from the Caspian region to Europe.

With an initial annual capacity of 10bn cm – equivalent to the energy consumption of approximately seven million households in Europe – the pipeline will make a significant contribution to the diversification of Europe’s energy supply. It will also help make energy supply for consumers more reliable, as well as achieve significant CO₂ reductions by providing a cleaner fuel, compared to coal. The first delivery of gas is expected by 2020. The total project cost is €4.5bn.

The European Investment Bank earlier this year approved TAP’s eligibility for a €1.5bn loan, and further contributions from the export credit agencies of France, Germany and Italy are currently under consideration.

At the start point in Turkey, TAP will connect to the Trans Anatolian Pipeline (TANAP) for which the EBRD approved a €500mn loan last October. At the end point in Italy, TAP will connect to the Italian natural gas network and, from there, link with wider European networks.

The Southern Gas Corridor value chain has a total estimated cost of $40bn and includes gas infrastructure investments into a 3,500 km network of pipelines crossing six countries. Key project components components include the Shah Deniz gas field offshore Azerbaijan, the Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP in Turkey and TAP. 

Map source: BP