TIRANA, July 7 – Two years after it was announced the winning project to bring Caspian gas to Europe, the Trans Adriatic Pipeline has officially launched its works in the Albanian section with the construction of access roads and bridges.
Speaking at the inauguration ceremony last weekend in Skrapar, southern Albania, TAP’s managing director Ian Bradshaw described the first construction stage in Albania as critical to the project’s progress.
“The construction of access roads and bridges in Albania is critical to our project’s progress. We are committed to zero harm to affected communities and minimum impact to the environment with safety remaining one of our highest priorities,” he said, adding that TAP was on track to safely deliver Caspian gas to Europe in early 2020.
“The rehabilitated roads and bridges will contribute not only to the modernization of the transport infrastructure but also to transport safety. They will boost access to markets and services, thus contributing to the long-term economic growth of many Albanian regions,” added Bradshaw.
Albania’s Prime Minister Edi Rama described TAP as a milestone project which will turn Albania into an energy hub in the region.
“For Albania, TAP does not only mean energy supply, but above all a consolidated establishment of Albania into a very important position as far as energy security is concerned in Albania and beyond. TAP is not simply a gas pipeline, but turns Albania into a hub of energy supply from East to West,” said Rama.
An Albanian-Italian joint venture has been selected for the construction and rehabilitation of access roads and bridges in Albania for the landmark Trans Adriatic Pipeline project bringing Caspian gas to Europe through Albania, Greece and Italy.
Works are being carried out by Albania’s Gener 2 and Italy’s Sicilsaldo and involve the construction and rehabilitation of over 100 km of road along the pipeline’s route in the Albanian section and 52 bridges in the regions of Korçe, Berat and Fier.
The building of Albanian access roads and bridges is a crucial step in TAP’s preparations for pipeline construction, to begin in 2016, TAP said.
The pipeline in Albania will be approximately 211 km long, starting at Bilisht Qendër in the Korça region, on the border with Greece. TAP’s landfall in Albania will be located 17 km north-west of Fier, up to 400 metres inland from the shoreline. The offshore section in Albanian territorial waters will be about 37 km.
TAP’s route across the Adriatic Sea will take the pipeline approximately 105 km along the seabed from the Albanian to the Italian coast.
Economic benefits
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.
The pipeline which is expected to carry the first gas by 2020 will transport natural gas from the giant Shah Deniz II development in Azerbaijan through Greece and Albania to Italy, from which it can be transported farther into Western and Central Europe.
Findings by an Oxford Economics study show that during its four years of construction (2015-18), inclusive of direct, indirect and induced effects, TAP will contribute a total of Euro 370 million to Albanian GDP, create an average of 9,900 jobs per year and generate Euro 90 million for the Albanian treasury.
Albanian experts have described TAP as an opportunity that would benefit Albania both economically and politically, making the country an important hub of the international gas pipeline for the Western Balkans.
The European Union and the Azerbaijani government are assisting Albania in the country’s gasification ahead of the first gas flows in 2020.
With domestic electricity generation 100 percent dependent on hydropower plants and rainfall, TAP would be another opportunity to diversify generation especially in the newly-built Vlora thermal power plant which although made available for use since more than one year has not been made operational because of its high cost on fuel operation. TAP would also help the country’s gasification by offering gas, already massively used as a cheaper alternative to electricity for cooking and heating, although the country’s buildings lack gas infrastructure. The passing of the oil pipeline through Albania would also pave the way for the construction of the Ionian-Adriatic pipeline making Albania a gas hub to other Balkan regional countries, experts say.
“Albania should not lose its chance and the country should not suffice with the fact that a gas pipeline passes through which is very important strategically. We are working to get huge economic benefits from gas,” Energy Minister Damian Gjiknuri has earlier noted.
TAP’s shareholding is comprised of UK’s BP (20 percent), Azerbaijan’s SOCAR (20 percent), Norway’s Statoil (20 percent), Belgium’s Fluxys (19 percent), Spain’s Enagás (16 percent) and Switzerland’s Axpo (5 percent).