Brussels, Oct 10ؔhe European Union will support Albania in projects regarding gas and electric energy. The promise was given by the EU Commissioner of Energy, Mr. Andris Piebalgs, during a meeting Albanian Minister of Economy, Trade, and Energy (METE), as part of the Energy Assembly taking place in Brussels. Official sources from METE elaborate that the support of the European Union will aim at various projects, such as the construction of the Trans-Adriatic gas pipeline (TAP) and the gasification of liquid gas.
Mr. Prifti presented the main reforms in the energy sector aiming at the development and consolidation of the sector. A new law regarding renovated energy is a new step toward the intensification of reforms in the sector and boosting the production of clean energy.
On his part, Commissioner Piebalgs hailed the Albanian reforms as part of the development and integration policy and as a contribution toward the functionality of Energy Community between Balkan countries and the European Union.
Energy has become one of the most important sectors in the country’s economy. The government is focusing its energy projects in a regional perspective, in order to develop Albania into a Balkan factor. An often declared objective by Prime Minister Berisha is to make Albania an energy superpower in South East Europe. During the last three years, investments in the energy sector have amounted to 3 billion euro involving the constructions of new hydro & thermo powered plants, and of new interjection lines to connect Albania with the Balkan energy transmission network as part of its future export infrastructure.
Regional gas & oil projects
In regards to energy, Albania is trying to integrate itself in regional gas projects. The most important project is the Ionian Adriatic Pipeline (IAP), which will connect Albania, Montenegro, and Croatia. A ministerial agreement has been signed between METE and its counterparts of the involved countries in September 2007. Bosnia & Herzegovina joined the project in December 2008. “As part of the Gas Ring of the Energy Community, IAP has the support of both the Energy Community and the European Union,” METE declared upon signing the agreement. IAP will connect Europe with the Caspian Basin and its completion is expected between 2011 and 2012
Another regional project, where Albania is involved, is the Tran-Adriatic Gas Pipeline (TAP). “Efforts are being made to include TAP as part of the Western Balkans gas pipeline (part of the Energy Community Gas Ring),” METE has stated.
Two companies will be responsible for the implementation of TAP, the Norwegian Statoil Hydro ASA and the Swiss EGL Group. Each company has a 50% stake on the project
The 520-kilometre long pipeline will transport gas via Greece and Albania and across the Adriatic Sea to Italy’s southern Puglia region and further into Western Europe. TAP’s offshore length will measure about 115 kilometers. In its upstream part TAP will interconnect with Greece’s existing pipeline system that is linked further to the east with systems in Turkey.
The gas transport capacity of the TAP pipeline will be around 10 billion cubic meters annually, with the option to expand to 20 billion cubic meters. TAP is expected to be operational at the earliest in 2011, depending on the gas shipment needs.
Implementation of the TAP project is subject to a final investment decision planned for the second half of 2009. EGL, which started the project, estimates it will cost 1.5 billion euro to build the pipeline. The final cost will depend on several factors at the time of construction, such as international steel prices and other pipeline equipment-related costs.
A third project, being the oldest one, involves the AMBO (Albanian Macedonian Bulgarian Oil Corporation) pipeline. The pipeline will pump Caspian oil from the Bulgarian port of Burgas via the Former Yugoslav Republic of Macedonia to the Bay of Vlora in the Adriatic Sea for transport to European countries and the United States. Four pump stations — two in Bulgaria and one each in FYROM and Albania — will be constructed along the route.
The pipeline will be 894km long. It is expected to have a capacity of 750,000 barrels of oil per day. The annual transit of crude oil will be 30m-40m tons and the whole investment will amount to $1.2 billion. About 80% of the funds have been provided so far. Ted Ferguson, AMBO CEO has said no difficulties are expected in ensuring the rest of the financing. Construction of the pipeline has been delayed several times with the latest starting date set this October.
Electric Energy
Electric energy production remains the most ambitious goal of the current Berisha government. Currently, 90% of the electric energy is hydro powered. About 200 concessions have been given in the last 4 years for the construction of major, medium, and small hydro power plants all over Albania, a country with abundant hydro resources. Other investments are being done to improve the transmission network, which right now is guilty of wasting some 35% of the produced energy.
A thermo powered plant in Vlora started its production in September 2009. A second one is planned to be built close to the city of Durres by the Italian ENEL, despite several environmental concerns by local environmental groups.
Dritan Prifti, Minister of Energy has declared that the government’s goals are to increase electric energy production by 50% by the end of 2011 and turn Albania into a net electricity exporter, and ultimately become a super energy producer in the South East Region.
In order to achieve such the government plans they must triple the amount of current investments.
Albania started a successful export of electric energy to Kosovo and Greece from January to August 2009. However, still dependant on hydro resources (rains), the country might be forced to import some electricity the remainder of the year since weather forecasts predict a dry winter.
