In May in Thessaloniki at a ceremony dedicated to the start of the construction of the Trans Adriatic Pipeline (TAP), the Greek Prime Minister Alexis Tsipras said that the construction begins at a crucial moment for the Greek economy and the region and, in a broader sense, coincides with the successful completion of the first assessment of progressing reforms and marks a new era for Greece. This is one of world’s largest projects. Greece becomes the energy hub of the region. Pipeline’s budget exceeds 1.5 billion euros. The implementation of the project will provide 8000 jobs. The total length of the pipeline will be 880 kilometres of which 550 kilometres in Greece.

From Azerbaijan to Europe (Italy) will supply the Trans Adriatic Pipeline natural gas produced in the second stage of development of the field “Shah Deniz” in the Caspian Sea with reserves of 1.2 trillion cubic meters. TAP is a continuation of TANAP which will come to Turkey from the said field. Starting in Turkey, TAP route goes on through Greece, crosses Albania and under the Adriatic Sea reaches the south of Italy (entering into the gas transportation network of Snam). One plans to start the operation of pipeline in 2020. Its capacity will be 10 billion with a possibility to increase throughput to 20 billion cubic metres (bcm) per year.

The design is important for Albania, where TAP will connect with the Ionian Adriatic pipeline which is expected to deliver gas to the local electricity network of the Western Balkans. Such plans also exist relating to Northern Greece. From there gas of Azerbaijan will go through a 180-kilometre long Greek-Bulgarian pipeline towards Bulgaria, Romania and Hungary.

Through the Trans Adriatic Pipeline Azerbaijan has access to attractive markets in Western Europe, and Turkey strengthens its position as a regional energy hub.

In any case the gas pipeline from Azerbaijan to the south of Italy can not seriously influence the Russian gas supplies to the EU, and the time of the appearance of this gas in the EU is shifting from year to year. By the way, Azerbaijan will be able to supply within TANAP and TAP only 10-20 bcm of gas while Russia will deliver at least 130 bcm.

June, 2016