The transformation of the European energy architecture is entering a decisive phase, and the Southern Gas Corridor (SGC) is becoming a key element of the EU energy security system. Ahead of the SGC Advisory Council meeting, issues of further capacity expansion and adapting infrastructure to Europe's climate goals are taking center stage.
In an exclusive interview with Report, TAP AG Managing Director Luca Schieppati summarized the first five years of TAP's commercial operation, discussed the implementation of the first expansion phase, which will provide additional gas supplies to Europe from January 2026, and discussed the prospects for hydrogen adaptation, decarbonization, and the pipeline's role in the REPowerEU initiative.
Report presents the interview:
- Do you plan to participate in the March meetings of the Southern Gas Corridor Advisory Council? If so, which priority issues does TAP intend to place on the agenda this year?
- Yes, we are going to participate in the meetings of the Southern Gas Corridor Advisory Council in Baku, which remains an important forum bringing together governments, international organisations, financial institutions and companies like TAP, and underline the strategic role of the Southern Gas Corridor as critical energy infrastructure for Europe.
Building on the milestones achieved in 2025 - including reaching the 50 billion cubic metres (bcm) of gas transported to Europe, completing five years of commercial operations, and delivering the first level of capacity expansion on time and without interrupting gas flows, TAP intends to contribute to discussions focused on operational reliability, infrastructure resilience and the coordinated development of the Corridor.
We see value in exchanging views on cooperation across the wider gas network, including coordination with national regulatory authorities, host governments, EU institutions, adjacent TSOs and upstream partners, as well as on the role of existing infrastructure in supporting Europe"s energy security and diversification objectives going forward.
- As of January 1, TAP officially has an additional capacity of 1.2 bcm per year. Could you clarify the timeline for the start of actual deliveries using this capacity? Is full utilization possible already in the first half of 2026?
- Since the start of the year, TAP has been making available additional long-term capacity of 1.2 bcm per year (bcm/a) as allocated to Shippers during the 2021 Market Test as well as short-term capacity for auctions on PRISMA. This additional capacity has been enabled through the successful completion of project works at TAP's compressor station in Greece, delivering the first level of expansion. Initiated in January 2024, the project was completed ahead of schedule, on budget, safely, and without interrupting ongoing gas flows, demonstrating TAP"s operational resilience, strong planning discipline, and execution excellence.
- It was previously reported that around 1 bcm of the additional volumes would be allocated to Italy and 200 mcm to Albania. Do you confirm these parameters for the Albanian market? How ready is Albania's infrastructure to receive pipeline natural gas for the first time in its history?
- Most of the additional long-term capacity (ca. 1.04 bcm/a) was booked with the start date of 1 January 2026 for capacity from our entry point at Kipoi on the Turkish-Greek border all the way to Italy. The remaining allocated capacity 0.16 bcm/a was booked with a later start date of 1 October 2026 from Greece to a new exit point to be built in Albania. TAP intends to have its exit point Roskovec ready in line with the timeline of the Long-Term Gas Transportation Agreements.
TAP cannot comment on the progress of works outside its responsibility or control.
We, however, remain fully committed to supporting the development of Albania's natural gas infrastructure.
- Following the 2023 Market Tests, a final investment decision (FID) was expected in January 2026. What is the current status: is the TAP consortium ready to move to the next stage and proceed toward increasing capacity to 20 bcm per year?
- Provided there is interest from the market, TAP has the potential to further increase its capacity, with the ability to reach a total capacity of over 20 bcm/a.
Any further expansion would be initiated through an open, transparent and non-discriminatory market test process, held at least every two years. The scale and timing of any additional expansion will depend on the level of accumulated binding capacity requests received during a market test and their economic viability.
The 2023 Market Test closed in December 2025 with no capacity allocated. In the meantime, the non-binding phase of the 2025 Market Test, launched in July 2025, is currently ongoing.
- Last year, a key phase of pipeline material testing in international laboratories was completed. What were the main conclusions? Do the results confirm that the existing infrastructure is capable of transporting a hydrogen blend of 10-20% without large-scale reconstruction? In parallel, TAP conducted a gap analysis of onshore equipment-compressor stations and metering units. Does hydrogen operation require the replacement of certain components, and what is the approximate scale of investment needed for such modernization?
- Our ambition is to develop the asset to enable the transportation of hydrogen blended with natural gas and we are currently assessing the technical feasibility of this. A roadmap has been outlined to prepare for medium- to long-term transport. In 2021, an initial hydrogen readiness study confirmed TAP's potential in this area.
Following this, TAP has conducted material tests in an international laboratory and tests related to the suitability of our above the ground installations required for hydrogen transport. Results of those tests are currently under thorough assessment. The investment in the facilities upgrade and hydrogen percentage to be transported will likely be developed incrementally over time to match the hydrogen market demands and in line with the related market regulations.
- How does TAP AG align its hydrogen sector development strategies with shareholders and key partners in the Caspian region, including government agencies and energy companies? Is TAP considering transforming into a universal energy bridge between the region and the European Union? In this regard, what are the current achievements in decarbonization, specifically in terms of reducing emissions, upgrading compressor equipment, and potential electricity supply?
- We are constantly in coordination with all our shareholders to gauge hydrogen and other green-gases" developments and intend to act in accordance with upcoming industry trends, constantly being guided by increasing the asset value and return on our shareholders' investments.
TAP fully recognises its role in supporting Europe's energy transition, alongside its contribution to energy security, and is progressing along a structured decarbonisation pathway for its own operations.
As part of TAP's Long-Term Energy Transition Strategy towards 2050, the Company implemented a Carbon Management Plan covering the period 2022–2025. This plan comprised more than 50 initiatives aimed at reducing TAP"s carbon footprint by 5%, methane emissions by 8% compared to forecast levels, and fugitive emissions by 54% compared to LDAR baselines over the same period.
These initiatives focused primarily on the reduction of direct CO₂ emissions through optimisation methods and energy-efficiency measures, electrification studies, the promotion of hydrogen and biomethane readiness, and the implementation of a Methane Emissions Reduction Plan supported by enhanced leak detection and repair activities.
By 2025, TAP achieved an overall reduction of more than 25% in greenhouse gas emissions and over 50% in methane emissions compared to forecast, as well as a reduction of more than 85% in fugitive emissions compared to the baseline data.
Internal assessments indicate that over 95% of TAP's CO₂ emissions originate from the operation of gas-powered compressors. In this context, and subject to future expansion being triggered, TAP is assessing the installation of electro-compressors at both existing and new compressor stations. This work includes the identification of grid connection points, evaluation of grid reliability, and assessment of the availability of low-carbon electricity to meet operational power requirements.
In parallel, TAP has put in place the tools and systems required for robust greenhouse gas data collection and reporting across all facilities. In Greece, EU Emissions Trading System (ETS) compliance verification was successfully completed at the Kipoi Compressor Station in February 2026.
- TAP has declared its ambition to achieve the "gold standard" of methane emissions reporting under OGMP 2.0. At what stage is the certification process today, and how does it affect the project's investment attractiveness for European banks and institutional investors?
- Indeed, TAP joined the OGMP 2.0 initiative in 2023. OGMP 2.0 is the flagship oil and gas reporting and mitigation programme of the United Nations Environment Programme (UNEP). The Programme defines five levels of reporting and performance that companies can achieve based on their methane monitoring, reporting, and reduction efforts. In line with the OGMP 2.0 objectives, in 2025 TAP has maintained the Gold Standard Pathway Certificate.
This important recognition reflects TAP's commitment to better understand, quantify, and reduce methane emissions across its operations. The certification confirms that TAP has developed a detailed roadmap for measuring and reporting methane emissions in line with the OGMP 2.0's strict standards, which serve as the global benchmark for transparency and performance in the oil and gas sector.
The Gold Standard Pathway is a key step towards obtaining the Gold Standard Reporting Certificate, which TAP expects to achieve during the current year, once full implementation of all measurement-based reporting requirements is completed.
- How do you assess TAP's role in shaping the EU's new energy architecture - in the context of REPowerEU, decarbonization, and strengthened links with the Caspian region and the Middle Corridor?
- Now in its sixth year of operations, TAP has established itself as a reliable, resilient and sustainable Transmission System Operator. Since the start of commercial operations, it has delivered almost 56 billion cubic metres of natural gas to Europe, contributing to the continent's energy security during a period of heightened uncertainty.
Beyond volumes, TAP has strengthened the integration of its host countries into Europe's energy system by enhancing regional connectivity and diversification. By physically linking the Caspian region with EU markets, the pipeline has reinforced supply diversification at a time when Europe is restructuring its energy architecture.
The REPowerEU agenda reflects a dual objective: accelerating decarbonisation while reducing structural dependencies on single suppliers and routes. Recent EU policy and legislation underline the importance of diversified and well-interconnected infrastructure in supporting a secure and orderly energy transition and safeguarding security of supply.
Within this framework, the Southern Gas Corridor - and TAP as its European segment - continues to be recognised as a strategic energy infrastructure. The European Commission has noted that scaling up TAP"s capacity could further strengthen gas supplies to the EU and the Western Balkans, a perspective also reflected in the EU–Azerbaijan strategic energy partnership.
At the same time, TAP's role is evolving alongside Europe's decarbonisation pathway. While natural gas retains an enabling role in the near term, TAP is progressively improving the efficiency and emissions performance of its operations and assessing long-term infrastructure readiness, in line with EU climate objectives.
Overall, TAP contributes to the EU's emerging energy architecture by strengthening resilience and diversification today, while preserving flexibility for a progressively decarbonised energy system.