Albania embarks on gasification project as deal signed – IAP pipeline agreement sealed

A new company will be created for implementation of the Ionian Adriatic Pipeline (IAP) project, according to a letter of intent signed by Plinacro (Croatia), Albgaz (Albania) and Montenegro Bonus (Montenegro), Azerbaijan’s state oil company SOCAR said in a message Feb. 16.

The document was signed at the Fourth Ministerial Meeting of the Southern Gas Corridor Advisory Council in Baku.

IAP is a proposed natural gas pipeline in Southeastern Europe that will stretch from Albania through Montenegro, and Bosnia and Herzegovina, to Split in Croatia. It will be connected with the Trans Adriatic Pipeline (TAP). The capacity of the pipeline will amount to five billion cubic meters of gas per year.

The sides have signed two memorandums of cooperation. Albania is a signatory of both documents and was represented by the Deputy Energy and Infrastructure Minister Enis Aliko.

The first memorandum refers to the creation of a new company that will build a pipeline that will pass along Albania, Montenegro, Bosnia and Herzegovina and Croatia to finish in Slovenia.

The second agreement, meanwhile, refers to the gas distribution to be transported by TAP to Albanian territory, and to be managed by Socar Balkans.

The agreement was signed by the Socar and Albgaz executives. Both agreements are very important for Albania.

Gasification of the country will significantly reduce heating or cooking costs for both business and households, and will also significantly reduce dependence on hydro sources, thus reducing fiscal risks.

On the other hand, the construction of the Adriatic-Ionian pipeline translates not only into new jobs, new foreign capital injected into the economy, but also geographic growth of our country, especially in the region.

SCAN

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