Apollo Global Management’s recent agreement to acquire a stake in the Trans-Adriatic Pipeline (TAP) for $1 billion marks a significant move in the energy sector. By purchasing a share in BP’s pipeline assets, Apollo will become a minority stakeholder in BP Pipelines TAP Limited, which itself holds a 20% share in TAP. This deal aligns with BP’s strategy to divest assets, aiming to raise between $2 and $3 billion by the end of the year. The transaction is expected to be finalized in the fourth quarter, pending regulatory approvals.
The TAP, a crucial part of the Southern Gas Corridor, transports natural gas from the Shah Deniz II field in Azerbaijan through Turkey, Greece and Albania, reaching Italy. The pipeline was completed in October 2020 with a total project value of $3.9 billion. The pipeline’s annual capacity is currently 10 billion cubic meters of gas, with potential to double this capacity in the future. The infrastructure involves multiple stakeholders: BP, SOCAR, Snam, Fluxys, Enagas and Axpo, reflecting a broad European and international investment in energy diversification and security.
