TAP opens tender to buy gas for operational activities

By August 1, the Trans Adriatic Pipeline AG (TAP) will announce an Invitation to Tender (ITT) outline for the purchase of gas required for its operational activities, including the fueling of the compressor stations, Report informs referring to the TAP website.

The ITT outline will set out the terms of the tender process to which each bidder shall be deemed to have agreed to by their participation. A pro-forma Expression of Interest (EoI) form will also be available on TAP’s website, so that qualifying parties can register their interest in receiving the full ITT package.

A high-level overview of the tender process is included below:

- Supply period: from October 1, 2022, until September 30, 2023

- Delivery points:

The interconnection point of Melendugno, Italy

Snam Rete Gas redelivery point at Melendugno

The interconnection point of Nea Mesimvria, Greece

TAP Virtual Trading Point (VTP), accessible for TAP shippers owning forward firm transportation capacity for the relevant period.

This is the third time that TAP is running such a tender process; the first annual ITT for gas to be used for TAP’s own operations was launched in June 2020 and the second one in May 2021.

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani 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.

Since the start of commercial operation, the gas pipeline has already transported more than 12 billion cubic meters of gas to Europe (of which more than 10 billion cubic meters to Italy and more than 2 billion cubic meters to Greece and Bulgaria).

TAP will facilitate gas supplies to South Eastern European countries through prospective interconnectors. In particular, Bulgaria will be able to cover up to 33% of its total gas demand through TAP after the completion of the Interconnector Greece Bulgaria (IGB). TAP’s exits in Greece and Albania, together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.

As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as its decarbonization objectives.

TAP’s shareholding is comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).