TAP – game changer from supplier diversification perspective

At present, only 10 billion cubic meters per year of gas reaches Europe via TAP, which is ‘modest’ volume measured against overall European gas demand, Elshad Nasirov, SOCAR vice president or investment and marketing, said on an Atlantic Council webinar, Report informs, referring to the S&P Global Platts.

"It’s not a game changer from a volume point of view, but it is a game changer from a supplier diversification perspective. This is its unique energy security and geopolitical contribution," he said.

He noted that it had helped to increase liquidity on the Italian Virtual Trading Points (PSV) market.

"The Italian market had long been illiquid, and prices at PSV were higher than at other hubs in continental Europe," he said.

"Liquidity is improved, meaning PSV assessments are now a more reliable guide to the Italian price," he said.

TAP accounted for just 3.4 percent of the Italian gas supply mix in January, according to data from S&P Global Platts Analytics.

In the future, SGC could also flow gas to the Balkan region.

The Western Balkans covers countries such as Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Kosovo.