Head of TAP AG: Work on Stage 1 of TAP's capacity expansion nearing completion

TAP AG, the operator of the Trans Adriatic Pipeline (TAP), has begun the mandatory 2023 market test phase to expand the pipeline's capacity, TAP AG Managing Director Luca Schieppati said at the Italian Energy Summit, Report informs.

"Today (October 2) marks the beginning of the mandatory 2023 market test phase, while the optional 2025 market test phase is also open. These processes allow the market to request additional capacity, which could pave the way for further expansion of the pipeline," he noted.

Schieppati emphasized that in less than five years, TAP has delivered over 50 billion cubic meters of gas to Europe thanks to "a proactive commercial offering, robust infrastructure and operations, and stable gas supplies from the Caspian Sea."

"TAP currently enjoys the trust of 46 registered customers, for whom we maximize available capacity on a daily basis," he added.

He also announced that work on the first phase of TAP's expansion, which envisages an increase in capacity by 1.2 billion cubic meters per year from 2026, is nearing completion.

"In the medium and long term, our strategy is to strengthen TAP's resilience and adaptability by enhancing operational and commercial quality, driving innovation, developing new products for the market, and supporting the energy transition and long-term sustainability," the TAP CEO concluded.

Following the 2021 market testing, commitments were made to increase the pipeline's capacity by 1.2 billion cubic meters per year by January 1, 2026, from 10 billion cubic meters per year. Of these volumes, 1 billion cubic meters will go to Italy starting in 2026, and an additional 200 million cubic meters to Albania.

This is the first phase of the expansion project, financed by TAP's own funds. The project budget is approximately €132 million. As part of this phase, an additional compressor unit will be installed at the existing compressor station in Kipoi, and equipment will be modernized.

The Trans Adriatic Pipeline, the final component of the Southern Gas Corridor, designed to transport Azerbaijani gas from the Caspian Sea to Europe, entered commercial operation on November 15, 2020. The 878-kilometer pipeline runs through Greece, Albania, the Adriatic Sea, and Italy.

Azerbaijan began exporting gas to Europe on December 31, 2020. According to the agreement between Azerbaijan and the EU, Azerbaijani gas supplies are expected to reach at least 16 billion cubic meters per year by 2027. As part of the first phase of the pipeline expansion, Italy will receive 1 billion cubic meters of Azerbaijani gas, and Albania 200 million cubic meters.