Axpo has agreed the sale of its 5% stake in the Trans Adriatic Pipeline AG (TAP) to TAP shareholders Fluxys and Enagás S.A, it was announced today. Under the sale and purchase agreement, Belgium’s Fluxys will acquire 1% and Spain’s Enagás 4% of Axpo’s 5% equity stake. Both companies will thus reach 20% ownership of TAP, which includes UK shareholder bp (20%), Azerbaijan’s SOCAR (20%), and Italy’s Snam (20%).

The value of the transaction amounts to EUR 210 million. The transaction is subject to customary conditions and closing is expected in the second half of 2023.

Axpo Group CFO Joris Gröflin said: “Axpo continues to pursue its three-pillar business strategy, focusing on our Swiss business, renewable energies and trading & origination. While the company has decided to transfer its stake in the project, TAP will remain a strategic partner for us, as Axpo Solutions AG will continue to market for the long-term gas volumes secured from the Shah Deniz consortium. In the current international context and considering the historically tight market conditions during the summer of 2022, supply security and diversification across gas supply chains remain key priorities for Switzerland and Europe as a whole. Gas transported via TAP provides a much-needed new energy source for households and businesses alike, also boosting security of supply for Swiss consumers.”

Gas trading remains a central international business for Axpo, an area in which hydrogen and other low carbon gases are becoming increasingly important, especially when it comes to making a relevant contribution to achieving a carbon neutral future.

The Trans Adriatic Pipeline operates the natural gas transportation infrastructure from the Greek border with Turkey through Greece, Albania and the Adriatic Sea to Southern Italy. The 878 km pipeline is part of the 3,500 km Southern Gas Corridor, transporting natural gas to Europe from the Shah Deniz II field in Azerbaijan. TAP has a capacity of approximately 10 billion cubic metres annually (bcm/a) and started transporting first Caspian gas at the end of 2020. In the future, TAP could double its capacity to 20 bcm/a.

Axpo was the initiator of this geo-strategic project. Shortly after the turn of the millennium, the Swiss energy company EGL – today Axpo Solutions AG – began considering the development of a new, fourth corridor for natural gas to Europe. At that time the vision was to procure natural gas at competitive conditions and develop new supply sources. Today, this vision is a reality.

About Axpo

Axpo is driven by a single purpose – to enable a sustainable future through innovative energy solutions. As Switzerland's largest producer of renewable energy and an international leader in energy trading and the marketing of solar and wind power, we combine the experience and expertise of more than 5000 employees driven by a passion for innovation, collaboration and impactful change. Through cutting-edge technologies, we innovate to meet the evolving needs of our customers in over 30 countries across Europe, the US and Asia.

About Fluxys

Headquartered in Belgium, we are a fully independent energy infrastructure group with 1,300 employees active in gas transmission & storage and liquefied natural gas terminalling. We operate in Europe and are developing activities in South America and Southeast Asia. Where the market is ready, as a gas infrastructure company we are also ready for the transition to a hybrid energy future in which carbon-neutral molecules and renewable electricity complement one another in the energy system.

About Enagás

Enagás is a TSO (Transmission System Operator) with 50 years of experience in the development, operation and maintenance of energy infrastructures. It has more than 12,000 kilometres of gas pipelines, three strategic storage facilities, eight regasification plants and operates in seven countries: Spain, the United States, Mexico, Peru, Albania, Greece and Italy. In Spain, it is the main natural gas transporter and the Technical Manager of the Gas System.

In accordance with its commitment to the energy transition, Enagás has nnounced that it is bringing forward its goal of becoming carbon neutral to 2040. The company is committed to the development of renewable gases (such as biomethane or green hydrogen), sustainable mobility and energy efficiency, among other areas. The company is a world leader in its sector in the main sustainability indices, as the Dow Jones Sustainability Index World, is included in the CDP Climate Change A List 2021, and has obtained the highest ESG rating in its sector in the FTSE4Good sustainability index.

About the Trans Adriatic Pipeline (TAP)

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP will facilitate gas supplies to South Eastern European countries through prospective interconnectors. In particular, Bulgaria will be able to cover up to 33% of its total gas demand through TAP after the completion of the Interconnector Greece Bulgaria (IGB). TAP’s exits in Greece and Albania, together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.

As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as its decarbonisation objectives.