Ital­ian na­tional plan says TAP to be put into op­er­a­tion by 2020

Azer News - - Front Page - By Le­man Mam­madova

The Trans Adri­atic Pipe­line (TAP), which en­vis­ages trans­porta­tion of the Azer­bai­jani gas to Europe, will be put into op­er­a­tion by 2020, Trend re­ports cit­ing the Pro­posal for an In­te­grated Na­tional Plan for En­ergy and Cli­mate (PNIEC) sent by Ital­ian Min­istry of Eco­nomic De­vel­op­ment to the Euro­pean Com­mis­sion.

“TAP, which will al­low the im­port of ap­prox­i­mately 8.8 bil­lion cu­bic me­ters of gas per year to Italy, with the pos­si­bil­ity of ex­pand­ing to 10 bil­lion cu­bic me­ters per year, will be put into op­er­a­tion by 2020,” reads the Na­tional Plan pub­lished on the min­istry's web­site.

The work on con­struct­ing in­ter­con­nec­tion be­tween TAP re­ceiv­ing ter­mi­nal and gas net­work of Italy’s Snam com­pany will start from Jan­uary 12, 2019.

In ad­di­tion, the phys­i­cal con­struc­tion of the in­ter­con­nec­tion will be­gin in Fe­bru­ary-March 2019.

Ital­ian Snam was re­im­bursed by TAP for an amount of 519 mil­lion eu­ros through a true-up mech­a­nism. Ac­cord­ing to Snam's in­vest­ment plan for 2017-2021, Snam will in­vest 4.7 bil­lion eu­ros in 2017-2021 to fur­ther de­velop the gas net­work in Italy and the in­fra­struc­ture sys­tem of Europe, and 270 mil­lion eu­ros in the TAP project.

Be­ing a Euro­pean leader in the con­struc­tion and in­te­grated man­age­ment of nat­u­ral gas in­fra­struc­ture, Snam op­er­ates and de­vel­ops Europe’s largest, most ac­ces­si­ble pipe­line net­work (more than 40,000 km), the largest stor­age in­fra­struc­ture (19 bcm ca­pac­ity) and one of the first LNG ter­mi­nals built in Europe.

TAP In­ter­con­nec­tion is the gas pipe­line (ex­tend­ing for round 55 Km) from TAP PRT (Pipe­line Re­ceiv­ing Ter­mi­nal) in Me­len­dugno (LE) to the ex­ist­ing Snam Rete Gas net­work in Italy.

The dis­cov­ery of the gi­ant Shah Deniz field and the suc­cess­ful im­ple­men­ta­tion of the project made Azer­bai­jan a coun­try that can ex­port a large amount of nat­u­ral gas to the world.

The project par­tic­i­pants are BP (op­er­a­tor - 28.8 per­cent), AzSD (10 per­cent), SGC Up­stream (6.7 per­cent), Petronas (15.5 per­cent), LUKOIL (10 per­cent), NİKO (10 per­cent) and TPAO (19 per­cent).

The State Oil Fund of Azer­bai­jan es­tab­lished in 1999 with the as­sets of $271 mil­lion aimed at ef­fi­cient ac­cu­mu­la­tion of re­sources and place­ment of as­sets abroad, as well as for the preser­va­tion and mul­ti­pli­ca­tion of funds re­ceived from the ef­fec­tive man­age­ment of oil rev­enues in or­der to min­i­mize the neg­a­tive ef­fect to the econ­omy, pre­ven­tion of "Dutch dis­ease" to some ex­tent, pro­mo­tion of re­source ac­cu­mu­la­tion for fu­ture gen­er­a­tions and sup­port of cur­rent so­cial and eco­nomic pro­cesses in Azer­bai­jan.

Based on SOFAZ's reg­u­la­tions, its funds may be used for the con­struc­tion and re­con­struc­tion of strate­gi­cally im­por­tant in­fra­struc­ture fa­cil­i­ties, as well as solv­ing im­por­tant na­tional prob­lems.

The rev­enues of the State Oil Fund are formed pri­mar­ily from rev­enues from the sale of oil, which re­mains at the dis­posal of Azer­bai­jan in ac­cor­dance with pro­duc­tion-shar­ing agree­ments.

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