Two-day international summit on Albania’s major developments and opportunities in the energy sector held in Tirana
TIRANA, March 18 – In an effort to diversify its energy sector, Albania has called on international investors to joint the country’s oil and gas projects, hoping to turn its market into an important crossing point for European energy corridors.
The call came from Prime Minister Edi Rama at an international summit organized in Tirana this week. Rama said Tirana considers the energy sector as the driving force behind its efforts to join the European Union and a “key to regional integration.”
The London-based International Research Networks organized a two-day international summit on Albania’s major developments and opportunities in the energy sector. It brought together interested international investors and key government officials to discuss on oil and gas opportunities, energy infrastructure projects and the Trans Adriatic Pipeline, part of Europe’s southern gas corridor.
In his keynote address at the summit, Rama said the Balkans’ strategic position favors it to turn into an interconnection link with Western Europe. But Balkan countries must first update their energy infrastructure, for which they are undertaking reforms to facilitate the attraction of investors with easier procedures.
Energy Minister Damian Gjiknuri said Albania is trying to diversify its energy market, now almost totally reliant the hydro-power stations.
Albania offers 13 free onshore and offshore oil and gas research blocks and is also part of the Southern Gas Corridor with the Trans-Adriatic Pipeline that will bring gas from Azerbaijan to Western Europe.
Its crude oil extraction, run mainly by Canada-based Bankers Petroleum and Petromanas Energy Inc., reached 1.4 million tons last year and estimated reserves in oil and gas reach 400 million tons.
“I invite all interested companies to become part of this process also exploiting the advantages offered from Albania in exploring hydrocarbons,” Gjiknuri said.
Rama also said his government is determined to conclude the troubled privatization of the state oil company, Albpetrol, by the end of the year, in an appeal to investors to seek opportunities in the country’s energy market.
He told the energy conference that his 18-month-old Socialist government preferred to act as regulator instead of outright owner of power infrastructure and oil and gas projects.
“To us, it is more important that the government becomes an active player in the market: It would serve as regulator and intervene, but only check competition and standards,” Rama said.
Albania, currently reliant on hydroelectric power for nearly all its electricity needs, is seeking to diversify its energy sector as part of an effort to modernize its economy and further its bid for European Union membership.
A previous bid to privatize Albpetrol was canceled in 2013 after the lead bidder failed to meet the conditions of the 850 million euro ($905 million) agreement.
Last year, the World Bank lent Albania $150 million (142 million euros) to improve power distribution network and management.
One of Europe’s poorest countries, Albania is hoping to put itself on Europe’s energy map as part of the planned Trans-Adriatic pipeline system, or TAP, to transport natural gas from the Caspian Sea to western Europe.
The project was chosen in 2013 over a rival route and will transport gas from Azerbaijan across Turkey, Greece and Albania and undersea to Italy, with completion scheduled for 2019.
(Tirana Times was a top media partner for the two-day summit held this week. More coverage on this topic is available in our business pages.)
