TAP section of Southern Gas Corridor enters operational phase

The Trans Adriatic Pipeline (TAP), an 878 km gas transportation system crossing Greece, Albania, the Adriatic Sea and Italy, has begun commercial operations.

The European leg of the Southern Gas Corridor, TAP is a gateway project that will transport 10bn cm/y of new gas supplies from Azerbaijan to multiple markets in Europe. It has been designed with the potential to double its throughput capacity to 20bn cm/y.

Murad Heydarov, Chairman of TAP’s Board of Directors, says: ‘As a key component of the 3,500 km Southern Gas Corridor, TAP ensures that Europe can receive supplies from yet another source, while supporting the key EU objectives of achieving an integrated energy market, and a sustainable, secure and diversified energy mix, contributing to ongoing streams towards clean energy transition.’

TAP project partners comprise BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%). The pipeline transports natural gas from the giant Shah Deniz field in the Azeri 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.

Commenting on the news, Murray Douglas, Wood Mackenzie Research Director, says: ‘This is a long-awaited and impressive milestone for all stakeholders. It is the first delivery of contracted Azerbaijani gas beyond Turkey, it provides a fourth gas import pipeline corridor for the EU, it boosts diversification and energy security, and it is an inflection point for import-reliant gas markets in Italy, Bulgaria and Greece.’

He continues: ‘TAP's commissioning enhances Italy’s supply options as it forges ahead with plans to decarbonise. It represents the first major pipeline project not underpinned by contracts with Eni. It will also improve the liquidity of Italy’s PSV gas hub and open more opportunities for south-to-north flows in the country.’

‘For the Southern Gas Corridor project and its many stakeholders, TAP’s launch is the end of the beginning, not the end itself. A scenario without TAP expansion to 20bn cm/y would be a failure against the initial objectives, especially for European supply security. All eyes will be on the binding phase of TAP’s market test in summer 2021. This could be a bellwether for the post-lockdown recovery of European gas fundamentals.’

Douglas adds: ‘Despite the European Green Deal and current market uncertainty, Wood Mackenzie is positive on the outlook for TAP expansion. However, regional gas dynamics have shifted since TAP construction started in 2016, especially thanks to Turkey’s recent giant Black Sea gas discovery. More Azerbaijani gas had been the initial hope to fill TAP expansion, but this is looking increasingly unlikely because of challenging project economics and better-positioned supply alternatives, including Russian gas.’

Piping and isolation valves at cooling towers of Kipoi compressor station
Photo: TAP