TIRANA, March 2 – A Swiss-funded project will be looking at ways of connecting the non-operational Vlora thermal power plant to the Trans Adratic Pipeline due its cheaper operation with natural gas.
A feasibility study has already begun and the chances are that a Fier-Vlora pipeline can serve to revive Vlora’s thermo plant thus securing a cleaner and more economical source of energy.
“For many years this project has been a failure, designed to operate both on diesel and gas but there has been no gas. Its connection to the gas system is vital for this project,” Energy Minister Damian Gjiknuri said.
TAP scheduled to bring Caspian gas to Europe through Albania, Greece and Italy is the only hope for the costly Vlora thermal power plant, a new 97 MW USD 112 millions low-sulphur distillate oil fuelled power plant, available for use since 2010, but which has not been put to use because of high fuel costs.
The power plant has not been taken over by Albanian power utility KESH yet as it faces an arbitration trial with an Italian company that built it due to financial disputes and problems in the plant’s cooling system.
The thermal power plant in the coastal city of Vlora could produce electricity at a lower cost of up to 40 percent if operated on liquefied natural gas instead of D2 diesel, according to a study carried out by the Albanian energy regulator. Last year the Swiss government provided €6 million to build capacities, to enable more benefits from the TAP line, and to manage a new gas market in Albania. For the long-term, the project will work to establish an Oil and Gas Institute, the first of its kind in Albania. The project will run till the end of 2019 and is expected to contribute in the sector of energy security and diversity.
According to international experts, developing a gas infrastructure and market and implementing the TAP pipeline will provide Albania with stronger ties to the EU, a greater political influence in the Balkans, stronger economic growth, more jobs, and energy security and diversity.
“TAP, the Trans Adriatic Gas Pipeline, will connect Albania with the main international gas corridors and networks. It is a great chance for increased energy security and economic development. I call on all the actors interested in the gas sector: tap into TAP!” said Swiss Ambassador to Albania Christoph Graf.
TAP has already launched its works in the Albanian section with the construction of access roads and bridges. Its route through Albania is approximately 215 km onshore and 37 km offshore in the Albanian section of the Adriatic Sea.
TAP which is expected to bring gas to Europe through Greece, Albania and Italy will generate one of that Albania’s largest FDI projects, with important benefits for a number of industries, including manufacturing, utilities and transport, experts say.
