Trans Adriatic Pipeline (TAP) AG launches the binding phase of its market test with an information phase, which provides two months lead time until actual bids may be submitted, starting 17 July 2021.

The binding phase opens following the approval of the Project Proposal of TAP, the Italian transmission system operator (TSO) Snam Rete Gas (SRG) and the Greek TSO DESFA by the national regulatory authorities of Greece, Albania and Italy, in May 2021.

The binding phase documents, including the Project Proposal, the Joint Notice of TAP, SRG and DESFA, the Binding Phase Notice of TAP and the supporting documentation and relevant forms, are available here. Stakeholders and interested parties can submit bids to market.test@tap-ag.com between 17 July and 20 July 2021.

Luca Schieppati, TAP Managing Director, said: “After four and a half months since gas flow via TAP started, we transported more than 2 billion cubic meters of gas and provided safe and reliable transmission services to our shippers.The possibility to expand TAP’s capacity in stages, in line with the relevant demand and supply, is a significant opportunity, especially for the countries in the South Eastern Europe region, which could enable them to reach their decarbonisation targets.”

Marija Savova, TAP Head of Commercial, added: “TAP is currently offering three expansion scenarios: a limited expansion (approx. 14.4bcm/a), a partial expansion (approx. 17.1bcm/a) and a full expansion (approx. 20bcm/a). Through the open, transparent and non-discriminatory market test process, TAP offers forward firm long-term capacity to the market and we look forward to receiving bids during the summer period.”

Background

The market test is the regulated process through which shippers can get access to new, long-term capacity in TAP, thereby enabling the expansion of TAP’s capacity up to 20 bcm/a.

In line with the rules and procedures specified in the Guidelines for the 2019 Market Test of Trans Adriatic Pipeline, approved by the national regulatory authorities of Greece, Albania and Italy, the market test is conducted in two main phases:

  - a non-binding phase, which started on 1 July 2019, now completed, followed by

  - a binding phase, starting on 17 May 2021.

The binding phase of the 2019 Market Test is structured as follows:

  - 17 May 2021 – opening of the information phase, during which any interested party may get accustomed with the documentation published and comply with necessary requirements for participation in the binding bidding phase.
17 July 2021 – opening of the binding bidding phase, during which bids may be submitted, and any capacity may be allocated, following a positive economic viability test.

The details regarding the offer levels and commercial rules applicable to the binding phase are included in the Project Proposal, available here.

Further information on participating in the binding phase is available in the Joint Notice of TAP, SRG and DESFA, in the specific Binding Phase Notice of TAP and in the supporting documentation, available here.

For more details and the procedure to follow for submitting bids at interconnection point (IP) Nea Mesimvria, please consult the website of DESFA (link), while for IP Melendugno, please consult the website of Snam Rete Gas (link).

About the Trans Adriatic Pipeline (TAP)

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan 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 decarbonisation objectives.

TAP’s shareholding is comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).