The European Investment Bank approved a 1.5 billion euro loan for the Trans-Adriatic Pipeline (TAP), part of a $40 billion project to bring new gas supplies to Europe.
The European Union is trying to reduce its dependence on Russian gas by developing the so-called Southern Gas Corridor which is expected to bring around 16 billion cubic metres of gas per year to Europe by 2020, Reuters writes.
The gas would come from the Shah Deniz 2 field in Azerbaijan via several routes, including the Trans-Adriatic Pipeline (TAP) to Greece, Albania and Italy.
TAP is slated to bring up to 10 billion cubic metres of gas to Italy from Shah Deniz 2 - one of the world’s largest gas fields developed by a BP-led consortium.
TAP would be the first non-Russian gas pipeline to supply Europe since Algeria’s Medgaz link nearly a decade ago, helping to dilute Gazprom’s one-third share of Europe’s gas market.
The 870-km pipeline will join up with the Trans Anatolian Pipeline (TANAP) at the Turkish border, crossing Greece, Albania and the Adriatic Sea. Its shareholders include Azerbaijan energy group Socar, oil major BP and Italian gas group Snam.
