TAP funding schedule will be named in 2017

Baku. 31 January. REPORT.AZ/ Overall construction of Trans-Adriatic Pipeline (TAP), which will deliver Azerbaijani gas to Europe, will cost 4.5 billion EUR.

Report informs, referring to Anadolu agency, TAP executive director Ian Bradshaw told.

He noted that they couldn’t indicate exact figure, as some agreements hadn’t been signed: “But now we can tell. After signing SCADA agreement, the total cost of the project has been shaped. TAP will cost 4.5 billion EUR. This also includes projecting and engineering works carried out since 2009”, he added.

Notably, previous estimates reflected total value as 6.2 billion EUR.

I.Bradshaw noted that construction within the project goes in accordance with the schedule. According to him, construction of compressor station will start in first quarter of this year: “Shahdeniz” consortium will sell first portion of gas within “Shahdeniz-2” project by late 2018 in Turkey and Georgia. First delivery to Europe is scheduled to early 2020. This project is of a great importance in terms of diversification of natural gas supply to Europe”.

TAP executive director told that TAP’s sea phase will be implemented in 2018-2019 years.

Talking about project’s funding, he noted that, besides European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB), they expect financial inflow from export credit guarantee institutions of several countries for products and services. TAP’s funding schedule will be determined during this year.

TAP executive director told over 8 million working hours have been spent for project’s implementation so far.

Notably, being a part of Southern Gas Corridor project, TAP will connect to Trans Anatolian Pipeline (TANAP) in Kipoy at Turkish-Greek border to deliver natural gas produced within “Shahdeniz-2” project to Southern Italy, passing through Greece, Albania and Adriatic Sea.

“Shahdeniz” consortium, after examining various options, on June 28, 2013 announced its decision to connect to TAP. The total length of the pipeline will be 878 kilometers, of which 550 kilometers in Greece, 215 kilometers in Albania, 105 kilometers in Adriatic Sea, and 8 kilometers in Italy. The highest point is in Albanian mountains (800 m), the lowest in bottom of Adriatic Sea (-820 m).

At the initial stage, the pipeline will transfer 10 billion cubic meters of gas to Europe. TAP groundbreaking ceremony was held in Saloniki, Greece on May 17, 2016. First delivery of Azerbaijani gas to Europe is scheduled to 2020. TAP’s shareholding is comprised of BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).