The war in Ukraine made clear the urgency of Europe's independence from Russian gas.

Albania aims to become in the future a transit country for gas transit in the Western Balkans and Europe.

Russian aggression against Ukraine, international sanctions against Russia and the urgency of Europe's independence from Russian gas are making energy projects a priority in Albania as well.

In this context, the strategic project for the transformation of Albania into a transit country for gas transit in the Western Balkans (WB) and in Europe, as well as for the diversification of the gas market in the region, is coming to life.

Overgaz Company, a leader in Bulgaria in the gas sector, to which the American company Linden Energy bought a 50 per cent stake last year, signed a Memorandum of Understanding with the Albanian state-owned company Albgas in Tirana earlier this week (16.05).

The memorandum concerns the bilateral cooperation for the realization of projects that diversify the supply of natural gas in BP and in Europe, including the supply of the company Overgas with Liquefied Gas (LNG) in the port of Vlora.

Official sources told DW that this cooperation has strong support from the US and Albanian governments.

The signing ceremony was attended by former US Secretary of State Mike Pompeu, currently Chairman of the Advisory Board of Linden Energy, as well as Prime Minister Rama.

A new energy corridor to BP and Europe

The cooperation between the American-Bulgarian company Overgas and the state-owned company Albgas will focus on the realization of a new LNG passage corridor from the port of Vlora to BP and Europe.

The project, which will be implemented for this purpose, envisages the construction in the bay of Vlora of a new floating terminal for the import of LNG, its storage and regasification, which will enable the gas supply of the existing TPP in Vlora.

A new pipeline, Vlore-Fier, to be built will enable the transport of quantities of gas to the Trans-Adriatic Pipeline (TAP), which has a key role in the EU energy security and its independence from Russian gas.

Lying at 878 km, TAP starts on the border between Turkey and Greece, crosses Northern Greece, passes through Albania and through the Adriatic Sea enters the south of Italy, where it is connected to the Italian gas network.

Since November 2020, when TAP became operational, TAP has been transporting 10 billion cubic meters of gas a year from Azerbaijan to Europe.

The American-Bulgarian company Overgas will be supplied with LNG from the floating terminal in the Gulf of Vlora and through the Vlora-Fier pipeline and TAP will transport it to the Western Balkans, thus reducing the region's dependence on Russian gas.

The potential of Albania

Official sources from Overgas claim that the gas supply of this company through this new corridor will go, in addition to BP, to Ukraine and Moldova.

Arbër Avrami, Executive Director of Albgas, tells DW that the new terminal for the floating LNG port in Vlora will be built by the American companies ExxonMobil and Excelerate Energy, leaders in the global LNG market.

"This terminal will also be connected to the Vlora Power Plant (TEC) which will be transformed by the American company Excelerate Energy from the operation of oil to gas.

The floating port, the new LNG terminal and the commissioning of the Vlora Thermal Power Plant (TEC) will create an ensemble important for Albania's potential to become a regional LNG distribution hub,

The commissioning of the Vlora TPP with gas takes on a special value in the conditions when since its construction, 20 years ago, with a loan of 129 million dollars from the World Bank and the Bank for Reconstruction and Development has not produced energy electricity due to a technical defect.

Shkëlqim Bozgo, a well-known expert in the field of energy, says for DW, that “the circumstances created by the war in Ukraine, the geographical position of Albania and the fact that TAP is already functional, enable Albania to become a transit point for gas flows natural gas through the construction of a liquefied gas terminal in Vlora and its connection to the TAP gas pipeline. ”

"Albania is already a transit country for natural gas through the TAP pipeline.

The construction of the liquefied gas plant in Vlora will contribute to the increase of the quantities that can be transited through Albania, to the operation of the Vlora TPP, the construction of new gas TPPs and the development of the gas sector in Albania. ", Shkëlqim Bozgo emphasizes for DW.

He says that in the floating port of LNG in Vlora "gas can come from all its producers in the world, but most likely it will come from the US, Algeria and Qatar."

Ionian-Adriatic Pipeline and independence from Russian gas

The Albanian authorities consider the LNG terminal and the gas operation of the TPP in Vlora as an integral part of another regional project: the construction of the Ionian-Adriatic Pipeline (IAP), which is designed to extend 520 km , mainly along the Adriatic coast.

The OIK aims to connect TAP with the existing gas infrastructure in Croatia, with the possibility of building connecting pipelines with Kosovo and Bosnia and Herzegovina, enabling gas supplies from the Caspian and Middle East region to reach the Croatian gas market. as well as to contribute to the gasification of Albania and Montenegro.

According to the project, the OIK will start in Albania at the TAP exit point in Seman, Fier, to continue to Montenegro, then to Bosnia and Herzegovina and end in Split, Croatia, where it will be connected to the Croatian system. gas.

“Thus, the OIK opens another new gas corridor for the region, which envisages a mechanism in the direction of two directions, entry-exit, of gas flows and includes the LNG terminal in the bay of Vlora.

Recent developments in the world geo-political arena are producing consequences in the field of energy security.

"At the same time, they have channeled more than ever the will and energy towards the materialization of projects such as the OIK, which contribute to Europe's independence from Russian gas," Arbër Avrami told DW.

According to energy expert Shkëlqim Bozgo, “Circumstances favor the OIK to consider increasing its capacity from 5 billion cubic meters of gas per year, which was initially planned, to 10 billion.

It can supply not only the BP countries but also the Central European gas market, which is already seeking to replace Russian gas with gas from other sources.

In the long run it can easily be converted into a transmitter of hydrogen that can be produced from abundant renewable energy in the BP region. ”

The geopolitical situation after the Russian aggression against Ukraine is increasing the interest to start the construction of the OI, hitherto hindered by the COVID-19 pandemic and difficulties in combining the operators of gas transportation systems in 4 countries from where the OI will pass.

Gasification of Albania

TAP provides Albania with the infrastructure to be supplied with natural gas from the gas sources of the Caspian Sea, Greece, Italy and all other gas markets connected through this pipeline.

It seems paradoxical that in these conditions, Albania can not get gas from TAP for the needs of the economy and citizens, because there is a complete lack of pipeline infrastructure that according to experts has a high cost: one million euros per km of pipeline.

"In the conditions of the lack of pipeline infrastructure, liquefied gas from the terminal in Vlora, offers a real opportunity for the supply of liquefied gas in small quantities by means of special autobots for this purpose, for an initial period.

The state-owned company Albgaz, which is the Transmission System Operator (OST) of gas in Albania, is cooperating with international companies for the development of gas infrastructure, including liquefied gas.

Meanwhile, TAP has started in Seman, Fier, the construction of the connection point with the future gas system in Albania, from where gas can be taken or introduced in the TAP pipeline system ", says for DW, Shkëlqim Bozgo.

He points to another possibility for Albania's gas supply: the discovery of oil and gas in the Shpirag area of ​​Berat.

"SHELL company has found oil and gas in the Shpirag area in a deep underground structure at the level of 5 thousand meters, which is currently in the evaluation process.

Being Shpiragu near the TAP crossing, there is a real advantage for the trade of this gas in Albania, BP markets and in those of Europe ", says for DW Shkëlqim Bozgo.

Albania - potential exporter of energy in 2030

Albania has been an energy importer for decades.

According to the latest report of the Energy Regulatory Authority, Albania meets on average about 70 percent of its annual needs with electricity, while domestic production, in total energy consumption (electricity and other fuels) manages to cover an average of 80 percent of domestic demand, while 20 percent is imported.

"For the development of a country, energy exports are no more important than providing energy supply sources to cover its needs.

The economic growth and development of a country are in direct proportion to energy consumption.

"Albania must increase energy generation from new sources, especially from renewable ones, and use energy efficiently," Shkëlqim Bozgo told DW.

The Government of Albania aims to become a net exporter of energy by 2030.

The hopes are in the oil and gas discovered by the company SHELL in Shpirag, Berat and "the construction of the Skavica hydropower plant on the Drin river with a capacity of 210 megawatts, photovoltaic parks and wind energy, the latter also at sea" says for DW, Arbër Avrami.

Experts estimate that the construction of the gas plant in Vlora will take 4 years and the construction of the Skavica hydropower plant 6 years.

"The project of transforming Albania into an energy exporting country will have the most technology and expertise.

This project, which has the attention and political guarantee of the USA, Albania's strategic partner, contributes to BP's energy security and the prioritization of regional interconnection ", Arbër Avrami emphasizes for DW.

/ DW /