TRANS ADRIATIC PIPELINE: €3.9 BLN

EBRD - The Trans Adriatic Pipeline (TAP) is announcing financial close today, with €3.9 billion secured from public and private lenders.

The EBRD is part of this consortium with a €1 billion loan syndicated to a group of 16 commercial banks with €500 million being provided on the Bank's own account.

TAP is a priority project of the European Union (EU) and the Energy Community, an international organisation which brings together the EU and its neighbours to create an integrated pan-European energy market.

The 878-kilometre pipeline will start at the Greek/Turkish border, cross Albania and, after passing under the Adriatic Sea, terminate in southern Italy. It constitutes the final segment of the Southern Gas Corridor, a supply route to transport gas from the Caspian Sea to Europe.

With an initial annual capacity of 10 billion cubic meters – 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. The first delivery of gas is expected in 2020.

It will also make energy supply for consumers more reliable and achieve significant CO2 reductions by offering an alternative to more polluting energy sources, supporting the transition to low-carbon economies in line with the EBRD's new energy sector strategy.

Nandita Parshad, EBRD Managing Director Sustainable Infrastructure, said: "The Trans Adriatic Pipeline will set the foundation for an integrated gas market across south eastern Europe and enhance the region's strategic status as an energy hub. We believe that gas remains an important transition fuel in this region that can help displace coal and facilitate penetration of renewables."

Financing is provided by a group of 17 commercial banks, alongside the EBRD, the European Investment Bank and the export agencies France, Germany and Italy.

At its start point in Turkey, TAP will connect to the Trans Anatolian Pipeline (TANAP) for which the EBRD approved a US$ 500 million loan in 2017. At the end point in Italy, TAP will connect to the Italian natural gas network and from there to wider European networks.

With exit points along the route, TAP has the potential to support new gas infrastructures, integrating markets across Southeastern Europe and enhancing the region's strategic status as energy gateway. For example, TAP's interconnectivity will be the foundation of the Albanian gas market and connect the country to one of the most innovative and important infrastructure corridors in Europe.

The EBRD is providing support for the development of institutions and regulations of the Albanian gas market through technical cooperation to support legal and regulatory capacity of the new natural gas TSO for Albania, Albgaz.

TAP has been designed in accordance with international best practice, including route selection, completion of environmental and social impact assessments, the implementation of robust contractor management controls and ongoing engagement and dialogue with the local population. This includes national environmental requirements, relevant EU legislation and EBRD performance requirements under its environmental and social policy. The EBRD will continue to monitor the project during construction and operations to ensure the continued compliance with these commitments.

The Southern Gas Corridor has a total estimated cost of US$ 40 billion and includes gas infrastructure investments into a 3,500-kilometre network of pipelines crossing six countries. Key components are the Shah Deniz offshore gas field in Azerbaijan, the Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP in Turkey and TAP. The inauguration of TANAP took place in June in Turkey.

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Earlier:

2018, August, 24, 11:10:00 AZERBAIJAN'S GAS FOR ITALY: 8.6 BCM/Y PLATTS - Azerbaijan's Shah Deniz 2 natural gas field producers have booked around 8.6 Bcm/year of long-term capacity to Italy in the planned 10 Bcm/year Trans-Adriatic Pipeline, developer TAP's head of communication, Lisa Givert, told

2018, July, 6, 11:35:00 €500 MLN FOR TRANS ADRIATIC PIPELINE EBRD - The EBRD Board of Directors has approved an up to €500 million loan for the construction of the Trans Adriatic Pipeline (TAP), a priority project of the European Union (EU) and the Energy Community. The 878 kilometre 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.

2016, September, 26, 18:40:00 SOUTHERN GAS CORRIDOR DIFFICULTIES The $45bn complex pipeline project running from Azerbaijan to Italy and consisting of four mega projects – Shah Deniz 2, South Caucasus Pipeline expansion (SCPX), Trans-Anatolian Pipeline (Tanap), and the Trans-Adriatic Pipeline (TAP) – would be delivered and will come in under budget, eventually delivering 16-32bn m³/yr.

2016, July, 27, 18:55:00 TAP WILL RUN The so-called TAP, which formally started construction in May, will run for 878 kilometers (550 miles) from Greece's border with Turkey, through Albania and to southern Italy, including a 105-kilometer (65-mile) stretch under the Adriatic Sea. First deliveries to Europe are expected in 2020.

2014, October, 2, 20:20:00 TAP IN EUROPE The EU’s long term goal regarding energy security is to become independent from one single gas supplier, increasing competition by having diverse energy suppliers. For these reasons, the EU promotes the Southern Gas Corridor, a strategically important gas value-chain passing through Azerbaijan, Georgia, Turkey, Greece, and Albania, linking Caspian gas to Europe.