The Trans Adriatic Pipeline (TAP), which began operations in November, allows more flexibility in prices and may reduce costs for Italian businesses, TAP External Affairs head Vugar Veysalov told Euractiv in an interview published on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 08th December, 2020) The Trans Adriatic Pipeline (TAP), which began operations in November, allows more flexibility in prices and may reduce costs for Italian businesses, TAP External Affairs head Vugar Veysalov told Euractiv in an interview published on Tuesday.
The new pipeline supplies Azerbaijani gas to Italy, Greece and Bulgaria, and meets 12, 20 and 30 percent of their gas requirements respectively, according to Veysalov.
"Natural gas flowing through TAP is priced without fixed link to the oil price as is usually the case with 'take-or-pay' contracts. In Italy for example, this could bring greater flexibility and a faster response to changes in market fundamentals with respect to current contracts feeding the Italian gas system, thus enabling a quicker recovery of businesses which still pay a higher cost of energy than their European peers," Veysalov said.
Veysalov also said that the TAP brings security of gas supplies to Europe and that the project can scale up to double its initial capacity of 10 billion cubic meters per year (353 billion cubic feet).
The TAP is linked to the Trans-Anatolian Natural Gas Pipeline (TANAP) at a Greek-Turkish border, while TANAP is connected to the South Caucasus Pipeline at the Turkey-Georgia border, which transports gas from Azerbaijan's Shah Deniz field. The pipelines aim to carry 16 billion cubic meters of gas a year, 6 billion of which is intended for the Turkish market.
