TAP getting ready for new market test to expand capacity

TAP getting ready for new market test to expand capacity

The Trans Adriatic Pipeline (TAP) consortium will launch a new market test (the 2023 market test), starting with a non-binding Phase in July 2023, Luca Schieppati, TAP managing director, said in an exclusive interview, according to Azerbaijan in Focus, reporting Trend News.

“While TAP’s initial long-term capacity has been allocated to shippers based on the long-term agreements signed for the initial project for 25 years to underpin the investment, we could support Europe’s energy security of supply even more as TAP is designed for capacity expansion up to approximately 20 bcm per year,” he said.

Schieppati noted that TAP’s expansion capacity is offered to the market through regular market tests in an open, transparent, and non-discriminatory way.

“Market tests are initiated at least every odd year. The market tests are structured in two phases: the non-binding phase and the binding phase. The binding bidding phase of the 2021 Market Test closed in January 2023, resulting in TAP being able to trigger the first level of capacity expansion and allocating ca. 1.2 bcm/a of incremental capacity through long-term contracts starting from 2026. Extraordinary, in order to accommodate the market needs, a second binding phase of the market test is expected to be launched in December 2023. In parallel, in line with regulation, a new market test (the 2023 market test) will be launched, starting with a non-binding Phase in July 2023,” he added.

The Trans Adriatic Pipeline serves as a conduit for transporting natural gas from the vast Shah Deniz field located in the Azerbaijani sector of the Caspian Sea to Europe. Spanning an impressive length of 878 kilometers, the pipeline begins at the Turkish-Greek border in Kipoi, where it interconnects with the Trans Anatolian Pipeline (TANAP). From there, TAP traverses through Greece and Albania, crossing the Adriatic Sea before reaching the southern shores of Italy.

TAP plays a vital role in facilitating the delivery of gas supplies to countries in South Eastern Europe, utilizing existing interconnectors while also paving the way for future connections. Notably, TAP is linked to the Interconnector Greece Bulgaria (IGB), which commenced commercial operations in October 2022. This connection enables the transportation of Caspian gas to Bulgaria, further enhancing the energy security of another European nation.

Moreover, TAP’s presence in Greece and Albania, along with its landfall in Italy, creates numerous opportunities for expanding the transportation of gas from Azerbaijan to broader European markets. This infrastructure provides a gateway for delivering Azerbaijani gas to various destinations, contributing to the diversification of energy sources and bolstering the security of energy supplies in Europe.