Axpo Solutions AG to continue to market for long-term gas volumes secured from Shah Deniz consortium, said Axpo Group CFO Joris Gröflin, as today the company has decided to sell its 5-percent stake in the Trans Adriatic Pipeline (TAP).
Under the sale and purchase agreement, Belgium’s Fluxys will acquire 1% and Spain’s Enagás 4% of Axpo’s 5% equity stake. Both companies will thus reach 20% ownership of TAP, which includes UK shareholder bp (20%), Azerbaijan’s SOCAR (20%), and Italy’s Snam (20%).
"Axpo continues to pursue its three-pillar business strategy, focusing on our Swiss business, renewable energies and trading & origination. While the company has decided to transfer its stake in the project, TAP will remain a strategic partner for us, as Axpo Solutions AG will continue to market for the long-term gas volumes secured from the Shah Deniz consortium. In the current international context and considering the historically tight market conditions during the summer of 2022, supply security and diversification across gas supply chains remain key priorities for Switzerland and Europe as a whole. Gas transported via TAP provides a much-needed new energy source for households and businesses alike, also boosting security of supply for Swiss consumers," Axpo Group CFO Joris Gröflin said.
As the European section of the Southern Gas Corridor, TAP has the capacity to transport approximately 10 billion cubic meters of gas per annum (bcm/a) to several markets in Europe. The pipeline is also designed with the potential to expand its throughput capacity up to 20 bcm/a.
TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.