The EBRD Board of Directors has approved an up to €500 million loan for the construction of the Trans Adriatic Pipeline (TAP).
The 878-kilometer pipeline will start at the Greek/Turkish border, cross Albania and, after passing under the Adriatic Sea, will end in southern Italy. It constitutes the final leg of the Southern Gas Corridor and will transport gas from the Caspian region to Europe.
With a capacity of 10 billion cubic meters, the pipeline will contribute to the diversification of Europe’s energy supply.
It will help make energy supply for consumers more reliable as well as achieve significant CO2 reductions by providing a cleaner fuel. The first delivery of gas is expected by 2020.
The total project cost is €4.5 billion. EBRD loan for Trans Adriatic Pipeline earlier this year was a 1.5 billion €, and further contributions from the export credit agencies of France, Germany, and Italy are currently under consideration.
At the start point in Turkey TAP will connect to the Trans Anatolian Pipeline for which EBRD approved €500 million. At the endpoint in Italy TAP will connect to the Italian natural gas network and with wider European networks.
The Southern Gas Corridor value chain has a total estimated cost of US$ 40 billion and includes gas infrastructure investments. The components are the Shah Deniz offshore gas field, Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP Turkey and TAP. The inauguration of TANAP took place in June in Turkey. Furthermore, the Bank will continue to monitor the project during construction to ensure the continued compliance with these commitments.
Original source: EBRD
Published on 4 July 2018