Azerbaijan has turned on the tap for gas supplies to Europe via the Trans Adriatic Pipeline (TAP), the country's energy ministry has announced, heralding the start of its push into the lucrative, Russian-dominated energy market.
TAP - Kipoi compressor station
Photo: Trans Adriatic Pipeline
The European Commission backs the project as part of its own attempts to diversify its energy supply away from over-dependence on Russia.
Presently, Russia controls 34% of Europe's gas markets and plans to increase that through projects such as Nord Stream 2, which is still stalled following US sanctions imposed in December 2019.
Read more: Nord Stream 2: Construction resumes as Germany mulls sanctions loophole & US demands moratorium
TAP is a part of the $40 billion Southern Gas Corridor, stretching 3,500 km from Azerbaijan to Europe and drawing from Azerbaijan's giant Shah Deniz II field in the Caspian Sea.
Azerbaijan aims to supply European gas markets with 10 bcm of gas a year, including 8 bcm to Italy and a combined 2 bcm to Greece and Bulgaria. It already supplies gas to Turkey.
"The transportation of natural gas extracted from the Shah Deniz field, the main source of the Southern Gas Corridor, to the Turkish market from June 30, 2018; to the European market for the first time, opens a new page in the development of Azerbaijan as a gas country," said a statement released on the Azerbaijani ministry's website.
"The transport of natural gas to Europe will strengthen the energy security of our country by diversifying the supply markets and of consumer countries by diversifying the sources and routes. It will contribute to development and stability in the great geography," it added.
TAP Greece map
Read more: Trans Adriatic Pipeline begins commercial operations
Rovnag Abdullayev, head of state energy firm SOCAR, hailed the start of the gas sales to Europe as a "historic day".
Analysts have said Azeri gas is unlikely to change Russia's dominant position in Europe, but that it still poses some threat to Moscow's share of the region's gas market.
The TAP stakeholders are BP, SOCAR, and Snam, with a 20% holding each, plus Fluxys with a 19% stake, Enagas with 16%, and Axpo with 5%.
The first phase of the Shah Deniz field began production in 2006, delivering more than 10 bcm a year of gas to Azerbaijan, Georgia and Turkey.
The second phase started output in 2018, adding 16 bcm of gas production capacity at its peak to bring total capacity to 26 bcm.
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