EIB Approves €1.5bn TAP Loan

The European Investment Bank (EIB) has approved a loan of €1.5bn ($1.9bn) for the Trans-Adriatic Pipeline (TAP) project, the last stage of the $40bn Southern Gas Corridor (SGC) project to bring new gas supplies to Europe.

The decision was made at the meeting of the Board of Directors of the bank and announced February 6.

The European Union is trying to reduce its dependence on Russian gas by developing the Southern Gas Corridor. SGC, composed of BP-led SD2, South Caucasus pipeline extension (SCPX), Trans Anatolian Pipeline (Tanap) as well as the Trans Adriatic pipeline (TAP), is to carry 16.18bn m³/yr gas to Turkey (6bn m³/yr) and the EU by early 2020.

(Credit: TAP)

Azerbaijan’s Southern Gas Corridor company (SGCC) has spent $8.6bn of its $11.5bn share of the giant pipeline project, including Shah Deniz stage 2, and will spend a further $1.3bn this year. 

A BP source told NGW earlier that in 2019 SD2 is expected to produce 2bn m³ which would all go to Turkey. “Azerbaijan’s total gas export to Turkey (SD1&2) is expected to reach 8.5bn m³ in 2019, compared with 6.5bn m³ in 2017 and to reach its contractual 12.5bn m³ in 2021."

The TAP project is now on schedule for early 2020 start up, according to its president, Walter Peeraer. 

The length of the pipeline is 878 km, of which 550 km will be in Greece, 215 km in Albania, 105 km across the Adriatic Sea and 8 km in Italy. These last have been the most contentious as the local mayor has tried to stop the pipeline landing there, despite the project's strong support in Rome. Farmers in Greece have also held out for better wayleave terms.

Shareholders of TAP are: BP, Socar, Snam (20% each), Fluxys (19%), Enagas (16%) and Axpo (5%).