The Trans Adriatic Pipeline (TAP), a company established to plan, develop and build the Trans Adriatic Pipeline natural gas pipeline, has achieved financial close, with €3.9bn funding secured from public and private lenders.
The European Bank for Reconstruction and Development (EBRD), part of the consortium, has syndicated a loan of €1bn to a group of 16 commercial banks with €500m being provided on the bank’s own account.
Financing has been provided by a group of 17 commercial banks, alongside the EBRD, the European Investment Bank (EIB) and the export agencies France, Germany and Italy.
The pipeline is a priority project of the European Union (EU) and the Energy Community, a global organisation that brings together the EU and its neighbours to create a pan-European energy market.
The 878km pipeline will begin at the Greek/Turkish border, cross Albania and pass under the Adriatic Sea before terminating in southern Italy.
It will be the final segment of the Southern Gas Corridor, a supply route to transport gas from the Caspian Sea to Europe.
The pipeline will have an initial annual capacity of 10 billion cubic metres, equivalent to the energy consumption of approximately seven million households in Europe. Gas delivery is expected to commence in 2020.
By offering an alternative to polluting energy sources, the pipeline is expected to make energy supply for consumers more reliable and achieve significant reduction in CO2.
At the originating point in Turkey, the pipeline will connect to the Trans Anatolian Pipeline (TANAP) for which EBRD approved a $500m loan in 2017.
At the end point in Italy, TAP will connect to the Italian natural gas network and from there to European networks.
TAP will have exit points along the route to support new gas infrastructure, integrating markets across South-eastern Europe.
The EBRD is providing technical cooperation to support legal and regulatory capacity of the new natural gas TSO for Albania, Albgaz.
Estimated to cost $40bn, the Southern Gas Corridor includes gas infrastructure investments into a 3,500km network of pipelines crossing six countries.
EBRD sustainable infrastructure managing director Nandita Parshad said: “The Trans Adriatic Pipeline will set the foundation for an integrated gas market across south eastern Europe and enhance the region’s strategic status as an energy hub.
“We believe that gas remains an important transition fuel in this region that can help displace coal and facilitate penetration of renewables.”
Image: Trans Adriatic Pipeline secures €3.9bn funding for gas pipeline project. Photo: Courtesy of Trans Adriatic Pipeline.