TAP shareholder reveals pipeline revenues

Spanish gas grid operator Enagas, which has a 16 percent stake in the TAP AG consortium, has increased its revenues, Report informs via foreign media.

Profits of Enagas from its foreign units, mainly Tallgrass Energy in the US and Trans Adriatic Pipeline, rose 39% to EUR 164 million.

This is while its nine-month net profit fell 12% to EUR 307 million ($357.29 million) after a change of regulations in 2020 forced it to charge lower fees in its home market.

Enagas reiterated its full-year net profit target of EUR 380 million set early this year as it took into account the regulatory changes imposed by the government. The company's net profit had reached EUR 444 million in 2020.

The company said demand for gas in Spain rose 2.7% in the first nine months of the year compared with the same period in 2020, lifted by consumption from households and industries, even though demand from power plants fell 15%.

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan 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. 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 decarbonisation objectives. TAP’s shareholding is comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).