By Nuran Erkul Kaya
ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) approved a loan up to €500 million for the construction of the Trans Adriatic Pipeline (TAP) project, the Bank announced Wednesday.
According to the EBRD announcement, the project is a priority for the European Union and the energy community.
The 878-kilometer pipeline will start at the Greek/Turkish border, cross Albania, and after passing under the Adriatic Sea, will end in southern Italy.
It constitutes the final leg of the 3,500-kilometer-long Southern Gas Corridor, which has a $40 billion investment volume to transport gas from the Caspian region to Europe.
TAP will have an initial annual capacity of 10 billion cubic meters equivalent to the energy consumption of approximately seven million households in Europe.
"The pipeline will make a significant contribution to the diversification of Europe’s energy supply. It will also help make energy supply for consumers more reliable, as well as achieve significant CO2 reductions by providing a cleaner fuel, as compared to coal," according to the EBRD statement.
The total project cost is €4.5 billion and the first delivery of gas is expected by 2020.
The European Investment Bank’s board earlier this year approved TAP’s eligibility for a €1.5 billion loan. Further contributions from export credit agencies of France, Germany and Italy are currently under consideration, the EBRD said in the statement.
At the starting point in Turkey, TAP will connect to the Trans Anatolian Pipeline (TANAP) for which the EBRD approved a €500 million loan last October, the statement said.
The inauguration of TANAP took place in June in Turkey and first commercial gas was delivered on June 30.
"At the end point in Italy, TAP will connect to the Italian natural gas network and from there with wider European networks," the statement said.