TRANS Adriatic pipeline (TAP), which began to build in Europe, will allow supplying from Azerbaijan, 10 billion cubic meters to the South of the EU, primarily to Italy. So the Europeans are trying to diversify sources of deliveries of blue fuel. As a result “Gazprom” can lose almost half of its share in the Italian market.
The European Union began to build the TRANS-Adriatic pipeline . On Tuesday said the official representative of the European Commission, Margaritis Schinas. According to him, Europe by 2019-2020 years, expects to receive on the pipe 10 billion cubic meters of gas per year.
TRANS Adriatic pipeline is a part of the so-called southern gas corridor, which unites several gas pipeline projects that are intended for supply from the Caspian region to Europe bypassing Russia. In particular, we are talking about the Azerbaijani gas field Shah Deniz stage 2 (Azerbaijan plans to supply Europe with 10 billion cubic meters). Earlier it was reported that these volumes will cover about 17% of consumption in Italy. For comparison, according to the statistics of “Gazprom export”, Russia last year put in Italy 24,42 billion cubic meters — more than a third of its needs.
TAP will be the last link in the chain of pipes of Baku – Tbilisi – Erzurum (South Caucasus pipeline) and the TRANS-Anatolian gas pipeline (TANAP), which will be held on the territory of Turkey. TAP needs to be laid from the Turkish-Greek border, through Albania and the Adriatic sea to southern Italy. The cost of TAP is estimated at €5.6 billion.
TAP is associated with some interesting points. Firstly, Azerbaijan intends to supply gas, he partially buys it from Russia. In September last year began delivery under the contract with Gazprom, according to which Azerbaijan will purchase 2 billion cubic meters. However, on 11 may 2016, the head of the state oil company of Azerbaijan (SOCAR SOCAR) Rovnag Abdullayev said that Azerbaijan is ready to buy from 3 to 5 billion cubic meters and the corresponding offer “to Gazprom” have already been sent.
Secondly, the EC in March recognised the TAP project with the relevant European legislation, although it is fundamentally no different from the Russian gas pipeline “South stream” (YUP) (it from Russia in late 2014 was forced to withdraw because of the claims of the European Commission). The fact that the UP did not meet the so-called Third energy package of the European Union, which prohibits gas market participants to engage in the transportation of gas.
Shareholders of TAP are the players of the market: 20% owned by SOCAR, British BP and the Italian Snam, 19% — Belgian Fluxus, 16% — Spanish Enagas and 5% of the Swiss Axpo.
However, the TRANS-Adriatic pipeline in contrast to the “South stream” from under the action of the Third energy package was launched at the request of shareholders.
Russia has also been asked to go in this respect towards her project, but the Commission refused. However, the EC explained earlier, an exception is made for TAP, the fact that the overall effect is to increase the level of competition and Europe’s energy security from this project will be higher than the risks (here we are talking about the possible competitive advantages that TAP can obtain due to the fact that he to 25 years will be given a floating rate of taxes).
The partner of company Rusenergy Mikhail Krutikhin pointed out that “Gazprom” in Europe is perceived as a political tool of Moscow, and in this regard, whenever possible, to diversify the supply to Europe is trying to do.
“Therefore, the Italian market is likely to be superseded by volume, supplied by “Gazprom”, or at least part of them”, says Krutikhin.
With regard to prices for Russian and Azerbaijani gas, to predict the difference between them, according to experts, it is difficult, with 64% of gas contracts in Europe are indexed on the spot (under single contract). However, according to Krutikhin, the price of supplies from Russia and Azerbaijan will be about the same.
In the reporting “Gazprom”, the company says that currently, the revision rates of supply require the division of British-Dutch Royal Dutch Shell, Shell Energy Europe (a division of British-Dutch Royal Dutch Shell), Danish DONG Naturgas A/S, PGNiG, Polish, Turkish BOTAS and the Dutch GasTerra. And demand in a judicial order, the hearing must take place in 2016-2018 (in addition to PGNiG the decision on which shall be made no later than 31 July of the following year).
