ENTSOG Southern Corridor (SC) Gas Regional Investment Plan (GRIP) 2014-2023 / Annex B: Infrastructure Projects

PROJECTED CAPACITY INCREASES Interconnection

Capacity (GWh/d)

From Zone

To Zone

Modelled Direction Yes exit No exit Yes entry Yes entry

Melendugno - IT / TAP

337.00 243.00 243.00 337.00

Trans-Adriatic Pipeline (Greece) Hub Italia Trans-Adriatic Pipeline (Greece) Hub Greece

Komotini (DESFA) - GR / TAP

Kipi (TR) / Kipi (TAP) Melendugno - IT / TAP

Trans-Anatolian Pipeline (Turkey) Trans-Adriatic Pipeline (Greece)

Hub Italia

Trans-Adriatic Pipeline (Greece)

DESCRIPTION OF THE PROJECT

The Trans Adriatic Pipeline (TAP) will transport natural gas from Kipoi in Greece near the Greek/Turkish border, via Albania and across the Adriatic Sea, to Italy’s southern Puglia region in Province of Lecce. In its upstream part, TAP will interconnect with TANAP which is linked further to the east with systems in Turkey, to secure access to the Shah Deniz natural gas field in Azerbaijan and tie into Italy’s gas transportation grid operated by Snam Rete Gas in the province of Lecce. EXPECTED BENEFITS Security of Supply, Market integration (Italy, Greece and Albania), with the potential to further integrate the Western Balkans (Croatia) and broader South Eastern Europe area (Bulgaria, FYROM, Serbia, Hungary, Romania, Slovenia, Austria)), Reverse Flows, Diversification of sources, Diversification of routes, Back-up for renewables, TAP represents the pipeline chosen to transport gas from the Shah Deniz 2 field to EU borders and beyond. TAP will directly support the development of competition in the Italian, Greek, Albania and European gas markets. In addition to promoting diversification of routes and supply sources, TAP will also support diversification of counterparts (and shippers), as new players enter the markets together with completely new sources of gas.

The entry of new counterparts in the Italian market will also directly contribute to the development of the Italian gas hub and overall liquidity of the Italian market, as well as to liquidity and development of markets in Greece and South Eastern Europe and the Balkans.

COMMENTS ABOUT THE PROJECT FINANCING Public financing

Private financing

Multilateral financing

External debt financing to amount to 70% of total project costs. The lenders group envisaged by TAP at this stage includes Multilaterals, ECAs and commercial banks.

Shareholders financing to amount to 30% of total project costs.

Southern Corridor GRIP 2014–2023 Annex B |

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ENTSOG TYNDP 2013-2013 - Annex A