Enagás pays 168 million for 4% of the gas pipeline that connects Azerbaijan with the EU and reaches 20%

The CEO of Enagás, Arturo Gonzalo, at the beginning of January in Madrid.efe

Enagás continues with its growth strategy in Europe in the midst of the energy crisis.

If in mid-January it took over 20% of the gas pipeline that connects the United Kingdom with the Netherlands for 75 million euros, this Friday the manager of the Spanish gas system announced the purchase of 4% of the Trans Adriatic Pipeline (TAP, the tube that connects Azerbaijan with Italy, Greece and Bulgaria) to the Swiss Axpo change of 168 million.

This operation, subject to the usual regulatory conditions, will allow it to increase its stake from the previous 16% to 20%.

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Enagás pays 75 million for 20% of the gas pipeline that connects the United Kingdom and the Netherlands

After this transaction, the shareholders of the company that operates the main route of entry into the EU for gas from Azerbaijan is made up of five major partners: the Spanish Enagás, the British BP, the Azeri Socar, the Italian Snam and the Belgian Fluxys. — with an aliquot participation: 20% each.

"The role of the European TSOs (gas system operators, for its acronym in English) is reinforced in this strategic infrastructure for the European Union, which facilitates progress in its supply and decarbonization objectives," Enagás stated in the statement. sent first thing in the morning to the National Securities Market Commission (CNMV).

After Russia turned off the tap, gas from Azerbaijan, like that from Norway or Algeria, is essential.

The Trans Adriatic Pipeline is a gas pipeline almost 880 kilometers long, which runs through Greece, Albania, the Adriatic Sea and Italy.

It is the European section of the Southern Gas Corridor and transports natural gas from Azerbaijan to Italy, Greece and Bulgaria.

Since it began commercial operation in November 2020, this infrastructure has had 100% availability and has transported 18 billion cubic meters (bcm) of natural gas to Europe, almost 5% of what the EU consumed before the Russian invasion of Ukraine.

"TAP's transportation capacity could be increased as a result of the testing process currently underway," adds Enagás in the note.

The tube between Azerbaijan and the EU is included in the map of the European Hydrogen Backbone (EHB) —the initiative that involves 31 community gas operators to shape the future hydrogen transport network in the EU— “and could be adapted for the transport of green hydrogen, linking the points of production and consumption along its route, and thus contributing to the decarbonisation objectives of Europe”.