TAP announces the 2nd phase of the market test

On 17 March 2014 09.00 CET TAP AG will start the Booking Phase by sending the Booking Phase Notice to all registered participants.

Trans Adriatic Pipeline AG (TAP AG) is the exclusive provider of transportation services and related marketing rights on the Trans Adriatic Pipeline (TAP). The current shareholders in TAP AG are BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).

TAP is a pipeline that will transport gas via Greece and Albania and across the Adriatic Sea to Italy’s southern Puglia region which will then allow further transportation to Western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European market. TAP will open a new so-called Southern Gas Corridor to Europe and will provide a market outlet for natural gas, from sources including, but not exclusively, the Shah Deniz gas field (SD) in Azerbaijan.

On 31 August 2011 TAP AG filed an application for an exemption of the TAP Project from certain provisions related to third party access, regulated tariffs and unbundling under Article 36 of the Gas Directive. Before granting the exemption, the Authorities decided upon rules and mechanisms for management and allocation of capacity. These rules require a Market Test to be implemented.

In April 2012, the Authorities issued the Market Test Guidelines according to which TAP AG’s first market test has to be conducted in two phases:

1) non-binding Expression of Interest (EoI) Phase, and
2) a subsequent binding Booking Phase.

The Expression of Interest Phase took place from 15 June 2012 until 15 August 2012 on the basis of the Expression of Interest Phase Notice, issued by TAP AG and approved by the Authorities in May/June 2012. In the EoI phase all potential users, institutions and TSOs were invited to express their interest in contracting capacity or in connecting to the TAP Pipeline and were asked to submit data and information in order for the Authorities to assess the criteria set in Article 36.1 of the Gas Directive.

The EoI Phase neither bound participants to book the capacity for which they had expressed their interest, nor bound TAP AG to offer it.

Following the conclusion of the EoI Phase, the Authorities assessed whether the criteria set by Article 36.1 of the Gas Directive were fulfilled and issued a Final Joint Opinion (FJO) on TAP AG’s exemption application, dated 6 June 2013 imposing various conditions on TAP AG. While the Initial Capacity of the pipeline is exempted from third party access, the Expansion Capacity is offered to the market through this Booking Phase. Should the capacity up to TAP’s Total Capacity not be fully allocated, it will be offered by means of subsequent market tests. Expansion beyond the Total Capacity is subject to a technical and economic viability test.

Section 4.1.5 of the FJO imposes the obligation upon TAP AG to launch the Booking Phase not later than three months after the date of the Final Investment Decision according to the principles of the guidelines for the Booking Phase as approved by the Authorities.

On 17 December 2013, following the announcement by the Shah Deniz consortium that the Final Investment Decision for the Stage 2 development of the Shah Deniz gas field had been taken, TAP AG’s shareholders confirmed that they have passed the Resolution to Construct on the development and construction of the Trans Adriatic Pipeline project.

Subsequently, on 17 March 2014 09.00 CET TAP AG will start the Booking Phase by sending the Booking Phase Notice to all registered participants.

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energjia.al 19.02.2014