(MENAFN- Trend News Agency) Baku, Azerbaijan, Jan.29
By Leman Zeynalova – Trend:
Italy's Snam company, which is one of the shareholders of the Trans Adriatic Pipeline (TAP) project, has signed a 135 million euros financing with the European Investment Bank (EIB), Trend reports citing Snam.
The agreement envisages financing for various projects aimed at replacing and modernizing some pipelines and plants for natural gas transport and storage, said the Italian company.
'The goal is to make the Italian gas network safer and more efficient and flexible. The financing, with a fixed-rate of 1.372 percent and expiring in December 2038, is part of the company's strategy of optimizing its financial structure, as it is complementary to bonds and bank credit lines and has a longer duration and competitive cost,' reads the message.
Snam company is constructing an interconnection between the receiving terminal of TAP and its gas network.
The works for the construction of the Melendugno-Brindisi pipeline began on January 12, as scheduled.
TAP Interconnection is the gas pipeline (extending for round 55 Km) from TAP PRT (Pipeline Receiving Terminal) in Melendugno (LE) to the existing Snam Rete Gas network in Brindisi/Mesagne and crossing the municipalities of Melendugno, Vernole, Castrì, Lizzanello, Lecce, Surbo, Torchiarolo, San Pietro Vernotico, Brindisi.
TAP project, worth 4.5 billion euros, is one of the priority energy projects for the European Union (EU). The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.
Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy to connect to the Italian natural gas network.
The project is currently in its construction phase, which started in 2016.
Once built, TAP will offer a direct and cost-effective transportation route opening up the vital Southern Gas Corridor, a 3,500-kilometer long gas value chain stretching from the Caspian Sea to Europe.
TAP shareholders include BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).
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