BP

TAP pipeline starts process to double its gas transport capacity

MILAN, Jan 30 (Reuters) - The Trans Adriatic Pipeline (TAP) has started the process to increase its capacity to 20 billion cubic metres by 2027, it said on Monday, helping Europe to enhance its energy security.

The 878-kilometre (546-mile) link, which transports gas from Azerbaijan to several European countries including Italy, said 1.2 billion cubic metres (bcm) of incremental gas capacity per year will be available to clients through contracts starting from 2026.

This is the first step in a plan that should lead the energy infrastructure to double its current capacity to 20 bcm, if the following market tests give positive feedbacks.

"We are pleased to start expanding TAP's capacity, which can incrementally be increased up to at least 20 bcm per year," TAP's Managing Director Luca Schieppati said.

The expanded capacity will also allow the infrastructure to transport hydrogen and other renewable gases, Schieppati said.

In July the European Commission signed a memorandum of understanding with Azerbaijan to double imports of Azeri natural gas to at least 20 billion cubic metres a year by 2027 as the bloc strives to replace Russian gas with alternative fuel supplies.

TAP's shareholders include oil and gas group BP BP.L and Italian gas grid operator Snam SRG.MI.

(Reporting by Francesca Landini Editing by David Goodman and Barbara Lewis)

((francesca.landini@thomsonreuters.com; +39 02 66129437; Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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