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