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Economy

Gas trade in Albania, significant investments in the market

  • 8/20/2021 10:44 AM
Gas trade in Albania, significant investments in the market

The Albanian energy market is advancing, with many novelties.  Of particular interest are significant developments in alternative renewable energy. Thus for photovoltaic energy the capacity has increased from 120 MW to 490 MW, wind energy has planned to increase from 70 MW to 150 MW and even biomass energy is projected to range from 8 MW to 41 MW by the end of the year.

Albania was the first country in the Western Balkans region to submit an auction to renewable energy producers with the support of the EBRD. Thus, large renewable energy plants are expected to have a duration of 15 years. An important transformation also comes with the creation of ALPEX, as many small HPPs will find it valuable to enter the market using natural gas as a backup. Referring to the new strategy, until 2030, it is planned to continue with the completion of market liberalization reforms in the framework of regional integration and the promotion of sustainable development. The Natural Gas Promotion Scenario predicts that the demand for natural gas, for all sectors, will be over 1520 Mm3, making the penetration of natural gas against the total supply of primary energy sources is expected to reach 20% by the year 2030.

There are three important developments in the gas market in Southeast Europe: Serbia will already be supplied with Russian gas from Bulgaria through Balkan Stream, a branch of the Turkish Stream pipeline.

Supplies from Azerbaijan to Bulgaria via the Trans Adriatic Pipeline, known as the TAP pipeline. Marking the end of Gazprom's monopoly on the Bulgarian market. The commissioning of the new mobile liquefied gas terminal, LNG on the Croatian island of Krk with American gas, which was modified and introduced into the country's pipeline network, which is also connected to the European network. The southern gas corridor is now operational with two pipelines: TANAP and TAP. Through this connection, gas comes to Albania, where a necessary market for natural gas is already being considered. Albgaz has applied to the ERE to be certified as a combined natural gas operator, which entitles it to exercise certain specific functions in the sector. This company has obtained the status of observer at the European Network of Natural Gas Transmission Operators.

The Albanian government has signed a cooperation agreement between Albania and the US through the Ministry of Infrastructure and Energy and Exxon Mobil & Excelerate Energy for the import of liquefied natural gas from America to Albania.