PFI is the leading publisher of global energy and infrastructure finance news, data and analysis. Among the winners of prestigious award was the Trans Adriatic Pipeline (TAP) project which received Europe Oil & Gas Deal of the Year award for the EUR 3.9 billion project financing that it closed in late 2018. The event was attended by hundreds of senior professionals from the commercial banks, international financial institutions (IFIs), project companies and sponsors, including those of Southern Gas Corridor CJSC (SGC CJSC).

EUR 3.9 billion project financing of TAP was the largest project finance agreed for a European infrastructure project in 2018. The financing is provided by a large group of commercial banks and IFIs. Part of the financing is covered by the export credit agencies. SGC CJSC acts as one of the guarantors of the loan in the transaction (counter-guaranteed by a guarantee from the Republic of Azerbaijan) for the 20% share that it holds in Trans Adriatic Pipeline AG (TAP AG) and continues to provide required equity financing to TAP AG pro-rata to its equity share.

TAP will connect directly to TANAP on the Turkish-Greek border and transport natural gas via Greece and Albania, across the Adriatic Sea to southern Italy. TAP is expected to play a key role in the EU’s strategic goal of energy security and diversification of energy sources as it will be the shortest and most direct method of exporting gas from Azerbaijan to European markets. TAP is also expected to have ‘‘physical reverse flow’’ features, which will allow gas from Italy to be diverted to Southeast Europe, if required. The “Intergovernmental Agreement” on TAP project was signed among Albania, Italy and Greece in February 2013. TAP groundbreaking ceremony was held on 17 May 2016. The pipeline will be 878 km long and is expected to become operational in 2020. Initial transportation capacity will be 10 bcma (expandable to 20 bcma). Overall progress in the construction of TAP was circa 84.1% as of the end 2018.

TAP AG’s shareholders are: SGC CJSC (20%), BP (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

The purpose of Southern Gas Corridor value chain is the implementation of the 2^nd Stage of the development of Shah Deniz gas-condensate field (SD2 project) and subsequent delivery of the gas to be produced under the project via expanded South Caucasus Pipeline (SCPX), Trans-Anatolian Pipeline (TANAP) and TAP to Turkey and Southern Europe. The Projects have an estimated investment cost of approximately US$40 billion. Upon completion, the SD2 project will add a further 16 bcm of natural gas per annum to 10.9 bcma (maximum production capacity) already produced under the 1^st Stage of the development of Shah Deniz gas-condensate field (SD1 project). Total length of the newly constructed SCPX, TANAP and TAP pipelines will be more than 3,200 kilometres.