TODAY.AZ / Business

Albania set to buy Azerbaijani gas as part of TAP stage 2

25 October 2019 [10:51] - TODAY.AZ

By Azernews

By Leman Mammadova

Albania plans to buy Azerbaijani gas as part of the second phase of the Trans Adriatic Pipeline (TAP) gas pipeline project, Deputy Minister of Energy and Industry of Albania Ilir Bejtja, told reporters in Baku, on October 24.

Bejtja stressed that the construction work on both the onshore and offshore segments of the TAP pipeline in Albania has been completed.

“The construction of compressor stations was also completed. In general, small works remained on the project in our territory. Completion works are underway on the territory of Albania within the established schedule,” he added.

He also noted that Albania will not purchase gas as part of the first phase of the TAP project. “If a decision is made to expand the project, then Albania expressed a desire to acquire gas in the framework of the second phase of the TAP.”

In his words, gas consumption in the country by that time will reach 1.2 billion cubic meters a year.

Bejtja further stressed that a master plan for gasification of Albania has been prepared jointly with SOCAR.

“The parties have not yet agreed on the establishment of gas distribution networks by SOCAR in Albania,” he added.

Azerbaijani and Albanian governments signed a memorandum of understanding on cooperation in the development of the master plan for the gasification of Albania in late 2014. The sides agreed to create a special working group to prepare a feasibility study for the master plan in 2015.

The key dimension in bilateral economic relations between Azerbaijan and Albania is considered to be cooperation in the energy sector.

Two countries closely cooperate in the framework of the Ionian-Adriatic Pipeline (IAP) project, which is expected to be connected to the TAP.

IAP, as a branch of TAP, is a proposed natural gas pipeline in Southeastern Europe (SEE) that will stretch from Albania through Montenegro, and Bosnia and Herzegovina, to Split in Croatia. The capacity of the pipeline will amount to five billion cubic meters of gas per year.

In 2013, a mutual memorandum of understanding on construction of Trans-Adriatic and Ion-Adriatic gas lines were signed among Azerbaijan, Montenegro, Albania, Croatia, Bosnia and Herzegovina, as well as a memorandum of understanding on South Gas Corridor and South-East European Corridor projects were signed among Azerbaijan, Albania, Croatia and Montenegro.

Worth 4.5 billion euros, TAP is a part of Southern Gas Corridor project that envisages transportation of gas from Azerbaijani Shah Deniz-2 gas field to Greece and southern Italy across the Adriatic Sea through Greece and Albania, and involves designing, construction and operation of the natural gas pipeline.

Once built, TAP will offer a direct and cost-effective transportation route opening up the vital Southern Gas Corridor, a 3,500-kilometer long gas value chain stretching from the Caspian Sea to Europe.

The initial capacity of TAP will be 10 billion cubic meters of gas per year with the possibility of doubling it. About 90 percent of TAP pipeline construction works were implemented.

TAP may bring a net profit of 238 million euros after the first year of operation, that is, in 2021, according to the estimates of one of the partners of the TAP AG consortium. TAP shareholders include BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).


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