Shaping Europe's energy landscape with Azerbaijan's strategic partnership

By Ulviyya Shahin

The Trans Adriatic Pipeline (TAP) has emerged as a pivotal infrastructure project, linking the energy-rich Caspian Sea region to key markets in Europe. Since its inception, TAP has been instrumental in establishing a direct route for natural gas from the Southern Gas Corridor to Italy, Central Europe, and the Balkans. This strategic connection was emphasized by Marija Savova, Commercial Director of TAP AG, during her address at the Flame 2024 Conference in Amsterdam, as reported by Azernews.

Savova highlighted TAP's significant contributions since the commencement of its operations at the end of 2020. Notably, the gas transported through TAP accounted for a substantial portion of total gas imports in Italy and Greece in 2023, demonstrating the pipeline's crucial role in meeting energy demand in these markets.

Looking ahead, Savova emphasized the potential for TAP's expansion to double its capacity in stages. This expansion plan is envisioned to address challenges related to the security of gas supply while also aligning with the European Union's ambitious decarbonization targets. By facilitating the transportation of hydrogen and other renewable gases from countries along the Southern Gas Corridor to Europe, TAP could further contribute to the continent's transition towards cleaner energy sources.

Azerbaijan's entry into the European gas market on December 31, 2020, marked a significant milestone in the region's energy landscape. Under the agreement between Azerbaijan and the EU, Azerbaijani gas exports are expected to reach a minimum of 20 billion cubic meters annually by 2027.

In line with these developments, the first stage of expansion for TAP is scheduled for completion by the end of 2025. This expansion will enable TAP to accept an additional 1.2 billion cubic meters of Azerbaijani gas, further enhancing energy flows to key destinations. Italy and Albania are poised to benefit significantly from this expanded capacity, with Italy set to receive 1 billion cubic meters and Albania receiving another 200 million cubic meters of Azerbaijani gas starting from 2026.

The ongoing expansion and operations of TAP underscore its crucial role in shaping Europe's energy landscape, fostering regional cooperation, and driving sustainable energy transitions in line with global climate objectives.

Azerbaijan plays a pivotal role in the Trans Adriatic Pipeline (TAP) project, contributing significantly to its success and providing various benefits to both Azerbaijan and the wider region:

Energy Export Diversification: Azerbaijan's participation in the TAP project enables the country to diversify its energy export routes and markets. By connecting Azerbaijani gas fields to European consumers via TAP, Azerbaijan reduces its dependence on traditional export routes and expands its reach into lucrative European markets.

Economic Benefits: The TAP project generates substantial economic benefits for Azerbaijan. It creates employment opportunities during the construction phase and generates revenue through transit fees and gas sales. Additionally, increased gas exports contribute to Azerbaijan's GDP growth and overall economic development.

Strategic Importance: TAP enhances Azerbaijan's strategic importance as a reliable energy supplier in the European market. By providing a direct and secure route for Azerbaijani gas to reach Europe, TAP strengthens Azerbaijan's position as a key player in the global energy landscape and enhances its geopolitical influence.

Infrastructure Development: Participation in the TAP project necessitates the development of essential energy infrastructure within Azerbaijan. This includes the construction and expansion of gas extraction, processing, and transportation facilities, which not only support the TAP project but also contribute to the overall modernization of Azerbaijan's energy infrastructure.

International Cooperation: The TAP project fosters international cooperation and partnerships between Azerbaijan and European countries involved in the project. Collaborating on such a large-scale energy infrastructure project strengthens diplomatic ties, promotes regional stability, and enhances Azerbaijan's reputation as a reliable partner in the international energy market.

Contribution to Energy Security: By diversifying Europe's energy supply sources, TAP enhances energy security for both Azerbaijan and European countries. Azerbaijan's participation in TAP helps to stabilize energy markets, reduce supply vulnerabilities, and mitigate geopolitical risks associated with reliance on a single energy supplier or transit route.

Azerbaijan's involvement in the TAP project brings significant economic, strategic, and diplomatic benefits. It positions Azerbaijan as a key player in the European energy market, strengthens its ties with European partners, and contributes to regional stability and prosperity.