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TAP confirms first level of capacity expansion

The transmission system operator, Trans Adriatic Pipeline (TAP) AG, has confirmed that it will trigger the first level of capacity expansion, following the completion of the first binding bidding phase of the 2021 Market Test, the company announced on 30 January.

Following the closing of the binding bid submission window on 22 January, TAP will now trigger the first level of expansion and allocate 1.2 billion cubic metres (bcm) of incremental capacity per year through long-term contracts starting from 2026, the company said.

“We are pleased to start expanding TAP’s capacity, which can incrementally be increased up to at least 20 bcm per year. Having now closed the first binding phase, we intend to launch the second binding phase in the second half of the year to further enhance Europe’s security of supply and market liquidity”, said Luca Schieppati, TAP’s Managing Director. “New volumes of hydrogen and other renewable gases could also be transported through TAP’s capacity expansion to foster long-term sustainability and enable energy transition in the region,” he added.

TAP’s expansion capacity is offered through regular market tests in an “open, transparent and non-discriminatory way,” according to TAP’s press release. The company’s initial capacity can be expanded in steps to reach at least 20 bcm per year.

A second binding phase is expected during 2023 and interested parties will be able to submit their bids. As these regular open seasons are structured to test the market requirements in a gradual process, TAP aims at doubling the pipeline’s capacity by 2027.  

TAP reiterated its “firm commitment” to its role both within the RePowerEU plan, as well as the EU-Azerbaijan Memorandum of Understanding on a strategic partnership in the area of energy in July 2022, whereby the Southern Gas Corridor capacity would be expanded to deliver at least 20 bcm to the EU annually by 2027, the press release added. 

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