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DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA METE METE METE METE 1 DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA AND THE WHOLE REGION” AND THE WHOLE REGION” AND THE WHOLE REGION” AND THE WHOLE REGION” Prof. Prof. Asc Asc. Dr. . Dr. Stavri Stavri Dhima Dhima Head of Petroleum and Mining Policies Sector Head of Petroleum and Mining Policies Sector Industrial Policies Directorate Industrial Policies Directorate Ministry of Economy, Trade and Energy, Ministry of Economy, Trade and Energy, Albania Albania

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Page 1: DIVERSIFICATION, MODERNIZATION AND REGIONAL … · transformer at Elbasan2 and Zemblak. 220 kV between Fierzeand Prizren (Kosovo) IV.1. ENERGY INFRASTRCTURE 15 Transmittable power:

“DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL DIVERSIFICATION, MODERNIZATION AND REGIONAL

INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN INTEGRATION OF THE ENERGY INFRASTRUCTURE, AN

IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL IMPORTANT ORIENTATION FOR A SUCCESSFUL

DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA

METEMETEMETEMETE

11

DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA DEVELOPMENT OF THE ENERGY SECTOR IN ALBANIA

AND THE WHOLE REGION”AND THE WHOLE REGION”AND THE WHOLE REGION”AND THE WHOLE REGION”

Prof. Prof. AscAsc. Dr. . Dr. StavriStavri DhimaDhima

Head of Petroleum and Mining Policies SectorHead of Petroleum and Mining Policies SectorIndustrial Policies DirectorateIndustrial Policies DirectorateMinistry of Economy, Trade and Energy, Ministry of Economy, Trade and Energy,

AlbaniaAlbania

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CONTENTSCONTENTS

�� II.. ENERGYENERGY SECTORSECTOR OVERVIEWOVERVIEW

�� IIII.. ENERGYENERGY COMMUNITYCOMMUNITY

�� IIIIII.. ENERGYENERGY SITUATIONSITUATION ININ ALBANIAALBANIA

�� IVIV.. ENERGYENERGY INFRASTRCTUREINFRASTRCTURE

�� IVIV..11.. INFRASTRCTUREINFRASTRCTURE PROJECTSPROJECTS ONON POWERPOWER SECTORSECTOR..

22

�� IVIV..11.. INFRASTRCTUREINFRASTRCTURE PROJECTSPROJECTS ONON POWERPOWER SECTORSECTOR..INVESTMENTSINVESTMENTS ININ TRANSISSIONTRANSISSION

�� IVIV..22.. INFRASTRUCTUREINFRASTRUCTURE PROJECTSPROJECTS ONON PETROLEUMPETROLEUM SECTORSECTOR

�� V. DEVELOPING OF THE ENERGY INFRASTRCTURE V. DEVELOPING OF THE ENERGY INFRASTRCTURE

� VI.- INSTITUTIONAL RELATIONS ON REGIONAL COOPERATIONS

�� CONCLUSIONSCONCLUSIONS

Page 3: DIVERSIFICATION, MODERNIZATION AND REGIONAL … · transformer at Elbasan2 and Zemblak. 220 kV between Fierzeand Prizren (Kosovo) IV.1. ENERGY INFRASTRCTURE 15 Transmittable power:

I. ENERGY SECTOR OVERVIEWI. ENERGY SECTOR OVERVIEW

�The reforming, modernisation and strengthening of the national

energy sector, represent one of the most important targets of Albania,

in its way of developing and European integration.

�The energy in general and sustainable energy in particular are

becoming more and more sensitive topics and a big challenge to be

overcome, in local and regional level and beyond.

33

overcome, in local and regional level and beyond.

�The further modernization of the energy sectors in national

level, in order “to guarantee the energy security of supply”, is a

key objective for all SEE countries, and European countries, as well,

towards their further social and economic development, as well as

their regional integration.

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I. ENERGY SECTOR OVERVIEWI. ENERGY SECTOR OVERVIEW

� To face this situation the energy policy has to be addressed not

only on the growing of energy sector resources in domestic level,but also developing of compressive synergies and closecooperation amongst all countries in the SEE Region, andon European level.

�We believe that independently from the actual situationof our energy sector, the security of energy supply is

44

of our energy sector, the security of energy supply isdepending more and more from the developments ofenergy networks and infrastructures in the regional level.

�From the Albania Government point of view this objectivehas to be achieved by internally development of the energysources and infrastructures, and further more, throughstrengthening the regional coordination and cooperation

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II. ENERGY COMMUNITYII. ENERGY COMMUNITY

�The Establishing of the Energy Community Treaty is considered as a

very important instrument to face the challenges and for the achievement

of the main targets in the energy sector for the contracting Parties and for

the whole region, In order to increase energy exchange and energy supply

competition, as well as to enhance the security of energy supply in

regional level,

�As a Contracting Party of the Energy Community Albania has adopted

55

�As a Contracting Party of the Energy Community Albania has adopted

its strategy and Action Plan supported by necessary legal and institutional

framework.

�The Action Plan of Albania aims towards fulfilling the Treaty’s

requirements regarding energy network and energy market regulation,

first of all for the security of energy supply and its integration to the

Energy Community.

MINISTRY OF ECONOMY, TRADE AND ENERGY MINISTRY OF ECONOMY, TRADE AND ENERGY JUNE, 2010JUNE, 2010

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�In general energy resources of Albania include some poor quantity of coal,

crude oil, some quantities of natural gas and associated gas and o lot of hydro

potentialities.

�On the other side most of countries in the region, including EU members,

like Greece and Italy, cannot satisfy their domestic energy demand by using

only local resources. Some of them like Croatia, Montenegro, Kosovo and

Macedonia, have also experienced an increasing of electricity imports.

III. ENERGY SITUATION OF ALBANIAIII. ENERGY SITUATION OF ALBANIA

66

�The security of energy supply during these last years, first of all 2006-2009,

has been mainly conditioned by insufficient power generation and transmission

capacities, in regional level, due to generation decreases, monopolies and

protection positions.

�These regional insufficiencies, particularly in case of Albania, whose power

generation is highly sensitive to weather conditions, translate into severe and

repeated energy crisis, which can impede social and economic development

of the country.

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III. ENERGY SITUATION OF ALBANIAIII. ENERGY SITUATION OF ALBANIA

�The Albanian oil demand of about 1,2 million toe, partially is

covered by domestic production and partially by imports.

�The import of oil by products for 2009 was more than 60 % of

total consumption.

77

total consumption.

�Due to the actual very low level of domestic gas production

(about 9 million cm) and availability, gas system in Albanian has

been practically out of use.

�But gas is becoming more and more important due to socio and

economic development impact of the country in general and Power

Sector in particular.

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88

The location of main oil and gas field in Albania

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1500

2000

2500

Limestone

Sendstone

consumption

Historical Crude Oil Production and Consumption (Ktoe)

99

0

500

1000

19

29

19

47

19

60

19

70

19

80

19

90

20

00

20

08

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III. ENERGY SITUATION OF ALBANIAIII. ENERGY SITUATION OF ALBANIA

�As regard the power sector, Albania is a very reach hydro

resources country.

�The hydro reserves are around 16 billion kWh per year, out of which

we have exploited only 30-33 %.

1010

�The demand of electricity of about 6,5 billion kW is higher than

year local generation, which means that Albania is an importer of

electricity and in some cases more than 30 % of yearly consumption.

�To cover our electricity needs we have to import more than 2 billion

kW hours per year, through the interconnection capacities with

neighbouring countries.

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THE ENERGY IMPORTS IN ALBANIATHE ENERGY IMPORTS IN ALBANIA

1111Import of energy products 1995-2008 (ktoe)

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RECENT MARKET DEVELOPMENTSRECENT MARKET DEVELOPMENTS

•One combined cycle power generation plant of 97 MW convertible to NG and expandable up to 300 MW was completed near Vlora town in year 2009

•Three Large capacity cement

1212

•Three Large capacity cement factories already functional in Albania.

•A year consumption of LPG about 100 000 ton

•Positive economic growth despite global crisis.

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�In close cooperation with our partners there are identified

concrete projects in that extension, both in generation and

transmission of electricity and some of them are now in place or

under implementation phase.

IV. ENERGY INFRASTRCTURE IV. ENERGY INFRASTRCTURE

1313

�There are identified concrete projects for the regional

interconnection of Albania with oil and gas networks.

�In this prospective, Albania seems to play an important role on

the Energy Community transiting energy from Western Balkan to

Western and Central Europe.

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Transmission System

The Transmission System in Albania is composed of the 400, 220 and 110 kV level networks and has 120 km 400 kV lines, 1,103 km 220 kV lines, 34 km 150 kV line and 1,202 km 110 kV lines.

The 220 kV network is completely meshed and connects the main plants in the North of Albania with load centers in

IV.1. ENERGY INFRASTRCTURE IV.1. ENERGY INFRASTRCTURE

1414

the North of Albania with load centers in areas of Tirana, Elbasan and Fieri.

The 110 kV network is used for the supply of the Distribution System. Part of this network is meshed and the other part is radial.

The 12 substation 220 kV and 400 kV are generally constructed with double busbar in 220 kV and 400 kV side.

The map with power plants, lines and substations

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The Albanian system is connected to neighbouring countries by the following interconnecting lines:

400 kV between Zemlak and Kardhja(Greece) Rated power: 1200 MVA and Transmittable power: 700 MVA due to the 400/220 kV transformer at Elbasan2 and Zemblak.

220 kV between Fierze and Prizren(Kosovo)

IV.1. ENERGY INFRASTRCTURE IV.1. ENERGY INFRASTRCTURE

1515

(Kosovo)Transmittable power: 311 MVA

220 kV between Vau Dejes and Podgorica1 (Montenegro)Transmittable power: 311 MVA

150 kV between Bistrica 1 and Igumenice(Greece), used only in radial operation mode)er at Bistrice.

The 400 KV System with Greece arrivedup to 400/220 kV Elbasani substation anddon’t closed the 400 kV ring with MonteNegro.

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IV.2. INFRASTRUCTURE IV.2. INFRASTRUCTURE ON THE PETROLEUM ON THE PETROLEUM

SECTORSECTOR

Map of main oil and gas pipelines on the Albanian territory.

1616

on the Albanian territory.

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IV.2. INFRASTRUCTURE ON THE PETROLEUM SECTORIV.2. INFRASTRUCTURE ON THE PETROLEUM SECTOR

�� ConcerningConcerning oiloil andand gasgas transportationtransportation andand stockholding,stockholding, thethe investmentsinvestments

shallshall bebe mademade inin severalseveral directionsdirections..

�� ThereThere areare twotwo newnew OilOil TerminalsTerminals onon thethe AlbanianAlbanian seasideseaside..

�� TheThe OilOil TerminalTerminal ofof “Porto“Porto –– Romano”Romano” underunder thethe administrationadministration ofof thethe

concessionaryconcessionary companycompany “Romano“Romano Port”Port”.. (Operational(Operational sincesince JuneJune 20092009))

1717

concessionaryconcessionary companycompany “Romano“Romano Port”Port”.. (Operational(Operational sincesince JuneJune 20092009))

�� TheThe OilOil TerminalTerminal ofof ““VloraVlora Bay”Bay” underunder thethe administrationadministration ofof thethe

concessionaryconcessionary companycompany “La“La PetroliferaPetrolifera ItaloItalo Albaneze”shAlbaneze”sh..aa.. (Operational(Operational

sincesince JuneJune 20092009))

�� TheThe InvestmentsInvestments shallshall continuecontinue toto increaseincrease thethe existingexisting stockholdingstockholding

capacitycapacity andand thethe relevantrelevant infrastructureinfrastructure ofof oiloil gasgas andand theirtheir byby--productsproducts inin

thisthis areaarea ..

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IV.2. INFRASTRUCTURE on the petroleum sectorIV.2. INFRASTRUCTURE on the petroleum sector

1818

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“Porto Romano” Port is built 6.5 km north of the city of Durres.

The terminal will afford cargo ships with liquid gas capacity of 9.000tonesand oil cargo ships with capacity of 20.000tones.

1919

Discharge capacity of the equipment is:

4.000 tones per L.P.G / 24 hours

9.000 tones oil (gasoline) 24 /hours

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“Vlora 1” Port is built 3.5 km north of the city of Vlora

Shore infrastructure

50000 cbm for Petroleum Proucts

4000 cbm for LPG

Marine

2020

Marine infrastructure

600 m long quay

Depth about 8,5 m

Possible accommodation of

two vessels

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Energy Statistics (Ktoe) Energy Forecast (Ktoe)

2002 2006 2008 2010 2020 2030

Gross Inland Consumption

(GIC) 1730,4 1961,6 2094,9 2345,42345,4 3985,03985,0 5080,05080,0

Solids 20,6 18,0 23,0 24,0 62,0 105,0

Oil 961 1171 1307 1455 2102 2420

Natural Gas 8 10 8 8 603 1042

Nuclear 0 0 0 0 0 0

V. DEVELOPING OF THE ENERGY INFRASTRCTURE V. DEVELOPING OF THE ENERGY INFRASTRCTURE

2121

Nuclear 0 0 0 0 0 0

Electricity 166 53 209 220 78 110

Renewable energy forms 575,3 710,0 548,0 638,4 1139,9 1403,0

NetNet importsimports 834834 727727 941941 10691069 24842484 33423342

Solids 16 3 3 4 40 80

Oil 653 671 729 845 1772 2120

- Crude Oil and Feedstock 160 170 180 220 0 0

- Oil Products 493 501 549 625 1772 2120

Natural Gas 0 0 0 0 594 1032

Electricity 166 53 209 220 78 110

Energy balances and indicators of Albania

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V. DEVELOPING OF THE ENERGY INFRASTRCTURE V. DEVELOPING OF THE ENERGY INFRASTRCTURE

�These situations, on the Albanian Energy Infrastructure and

necessity to improve the diversification of energy sources and

interconnection with regional energy networks, well, have stressed

the Government of Albania to establish developing policies and

programs of the country and the economy, giving a specific priority to

the strengthening of the energy infrastructure.

2222

�There are o lots of projects in the energy sector, identified in close

cooperation with our neighbors and foreign partners to increase

Albanian Power System interconnection capacities, and to link our oil

and gas network with Eurasia energy resources and corridors and to play

an important role in transiting energy to Western Europe Countries.

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V. 1. V. 1. -- INVESTMENTS IN ELECTRICITY PRODUCTION AND INVESTMENTS IN ELECTRICITY PRODUCTION AND TRANSMISSIONTRANSMISSION

�The balance of the Albanian power system with alternative energy

sources is a determinant factor for the sustainable economic

development of the country, and for the future and its integration on

the Energy Community, as well.

2323

�Actually are given on concession contracts the construction of Devolli

River Cascade (installed capacity 319 MW), Ashta HPP (installed capacity

48 MW), Kalivaçi HPP (installed capacity 93 MW), more than 160 small

hydropower plants (installed capacity 344 MW), and several wind farms

(with a installed capacity about 1500 MW).

�We hope that after some years Albania will be able to cover the local

demand and to be a real exporter of electricity on the region, as well.

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AA numbernumber ofof projectsprojects toto improveimprove electricityelectricity

supplysupply inin thethe mediummedium andand longlong termterm areare::

ConstructionConstruction ofof ElbasanElbasan--TiranaTirana 22//KasharKashar--

PodgoricaPodgorica (already(already underunder constructionconstruction andand

financedfinanced byby ItalianItalian CooperacioneCooperacione andand KfWKfW));;

400400 kVkV transmissiontransmission networknetwork identifiedidentified

projectsprojects areare::

-- 400400 kVkV InterconnectionInterconnection betweenbetween AlbaniaAlbania

andand Kosovo,Kosovo, committedcommitted toto bebe financedfinanced byby

KFWKFW ofof Germany)Germany)

V. 1. V. 1. -- INVESTMENTS IN ELECTRICITY PRODUCTION INVESTMENTS IN ELECTRICITY PRODUCTION AND TRANSISSIONAND TRANSISSION

2424

KFWKFW ofof Germany)Germany)

-- 400400 kVkV SubstationSubstation ((busbarbusbar)) LezhaLezha

CommutationCommutation PointPoint..

-- 400400 kVkV SubstationSubstation ((busbarbusbar)) ElbasanElbasan NewNew

CommutationCommutation PointPoint

--400400 kVkV InterconnectionInterconnection betweenbetween AlbaniaAlbania

andand MacedoniaMacedonia -- OHTLOHTL ElbasanElbasan NewNew--

MacedoniaMacedonia..

--AlbaniaAlbania ––ItalyItaly HVHV underseaundersea

interconnectioninterconnection lineslines

-- ConstructionConstruction ofof thethe newnew

DispatchingDispatching CenterCenter..

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In this regards can mention the 400 kV lines with

V. 1. V. 1. --INVESTMENTS IN INVESTMENTS IN

ELECTRICITY ELECTRICITY PRODUCTION AND PRODUCTION AND

TRANSISSIONTRANSISSION

2525

the 400 kV lines with Montenegro, Kosovo and Macedonia and Italy.

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ALTERNATIVES OF ALBANIA’S FUTURE ALTERNATIVES OF ALBANIA’S FUTURE NN--G SUPPLYG SUPPLY

� Eventual new HC discoveries. (HC exploration under way)

� Connection to the international pipeline N

2626

� Connection to the international pipeline N - G networks.

� Construction of an LNG plant on the Albanian coast.

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Energy Community Gas Ring (Western Balkan Energy Community Gas Ring (Western Balkan

Ring project) on the frame of regional projectsRing project) on the frame of regional projects

2727

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Petroleum agreements on explorationPetroleum agreements on exploration

Actually are under operation for the exploration oil and gas Actually are under operation for the exploration oil and gas

the following agreements:the following agreements:

•• DurresiDurresi block offshore,block offshore, with the company with the company

ISLANDROCKALL ISLANDROCKALL JvJv. And the Australian company . And the Australian company

Beach Petroleum Ltd Beach Petroleum Ltd

•• Joni 5 block offshore,Joni 5 block offshore, with the company with the company MedoilMedoil, which , which

was bought by Cairn Energy company and the was bought by Cairn Energy company and the

Agreement for this block is covered by the branch Agreement for this block is covered by the branch

Capricorn Albania Ltd Capricorn Albania Ltd

2828

Capricorn Albania Ltd Capricorn Albania Ltd

•• AA--B blocks B blocks onshore and the Agreement on blocks onshore and the Agreement on blocks DD--E E

onshoreonshore, with company DWM Petroleum AG , with company DWM Petroleum AG

•• Blocks 2Blocks 2--3 3 onshore, with company DWM Petroleum onshore, with company DWM Petroleum

AGAG

•• Block F Block F with Bankerswith Bankers--Petroleum (under approval)Petroleum (under approval)

•• Until now in this activity is invested about Until now in this activity is invested about 800 800 milionmilion

USDUSD

•• The total amount of investment is expected to be The total amount of investment is expected to be 38 38

million USDmillion USD

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Energy and Industrial infrastructure project of Porto Romano (Durres), 810 ha

2929

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Infrastructure Projects on petroleum sectorInfrastructure Projects on petroleum sector

�� Projects in the oil and gas pipeline and their Projects in the oil and gas pipeline and their

infrastructure infrastructure

•• The Ionian Adriatic Gas Pipeline The Ionian Adriatic Gas Pipeline --IAP ProjectIAP Project

•• “Trans Adriatic Pipeline” (TAP Project)“Trans Adriatic Pipeline” (TAP Project)

3030

•• “Trans Adriatic Pipeline” (TAP Project)“Trans Adriatic Pipeline” (TAP Project)

•• LNG Terminal of the Trans European Energy BV LNG Terminal of the Trans European Energy BV sh.csh.c on on

the the FieriFieri District seaside.District seaside.

•• On the project of the Trans Balkan Oil Pipeline (AMBO On the project of the Trans Balkan Oil Pipeline (AMBO

Project):Project):

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A substantial „Regional Integrated Gasification A substantial „Regional Integrated Gasification -- Initiative“ is the Initiative“ is the

possible interconnection of Albania with regional gas marketpossible interconnection of Albania with regional gas market..

IAP

TAPLNG

ECR

3131

TAPLNG

TERMINALS

IGI

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WHY INTERNATIONAL NWHY INTERNATIONAL N--G CONNECTIONS G CONNECTIONS SHOULD TAKE ADVANTAGE FROM SHOULD TAKE ADVANTAGE FROM

CROSSING ALBANIA ?CROSSING ALBANIA ?

•• Albania is now a member of Albania is now a member of NATONATO and looks and looks

forwards the forwards the EU membershipEU membership. .

•• Has historically been a Has historically been a factor of peace and stability factor of peace and stability

in the regionin the region

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in the regionin the region

•• Its excellent geographical position offers the shortest Its excellent geographical position offers the shortest

and therefore the and therefore the most cost efficient linkmost cost efficient link for Nfor N--G G

pipes from Caspian areas to Southern Italypipes from Caspian areas to Southern Italy

•• Has important capacities for Has important capacities for underground storageunderground storage

•• Despite its modest size the Albanian economy is Despite its modest size the Albanian economy is

growinggrowing steadily.steadily.

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WBRIAP

��Option A:Option A: Supply of Albania with gas from Northern Supply of Albania with gas from Northern

Balkan grid via Croatia Balkan grid via Croatia towards Monte Negro (IAP towards Monte Negro (IAP

project). project).

Option C:Option C: Supply of Albania with Russian gas Supply of Albania with Russian gas

via Serbia, FYRO Macedoniavia Serbia, FYRO Macedonia, (part of Western , (part of Western

Balkan Ring projectBalkan Ring project

Option B:Option B: Supply of Balkan and Supply of Balkan and

Supply Options for the Gasification of ALBANIA

3333

TAP

IAP

LNG

Option D:Option D: Supply of Albania with LNG Supply of Albania with LNG

through the LNG Terminals on the Adriatic through the LNG Terminals on the Adriatic

seaside in seaside in FieriFieri RegionRegion

Option B:Option B: Supply of Balkan and Supply of Balkan and

Western European countries with gas Western European countries with gas

from the Caspian Sea Regionfrom the Caspian Sea Region via Turkey via Turkey

and Greece to Southern Italy and Greece to Southern Italy transit transit

through Albania. (TAP project, IGI through Albania. (TAP project, IGI

Project)Project)

IGI

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The Ionian The Ionian –– Adriatic gas Pipeline (IAP Adriatic gas Pipeline (IAP -- Project)Project)

Signing of Signing of Ministerial Declaration for Ministerial Declaration for the IAP Projectthe IAP Project, Zagreb 25 , Zagreb 25 September 2007. Joint Declaration September 2007. Joint Declaration of B&H, Tirana on 11.12.2008.of B&H, Tirana on 11.12.2008.

Benefits of IAP:Benefits of IAP:

�� Creates the preconditions of Creates the preconditions of gasification of Albania and gasification of Albania and Montenegro (about 400 km)Montenegro (about 400 km)

�� Facilities the gasification of South Facilities the gasification of South Croatia and a significant part of Croatia and a significant part of Bosnia and Herzegovina.Bosnia and Herzegovina.

3434

Croatia and a significant part of Croatia and a significant part of Bosnia and Herzegovina.Bosnia and Herzegovina.

�� Enables diversified supplyEnables diversified supply

�� Enables the access to Croatian and Enables the access to Croatian and Albanian underground gas storage Albanian underground gas storage facilities.facilities.

�� Enables the future interconnection Enables the future interconnection with Greek and FYROM gas with Greek and FYROM gas network.network.

�� Enables significant transit and Enables significant transit and thereby profit to Albania, thereby profit to Albania, Montenegro and Croatia.Montenegro and Croatia.

�� Activates the economy of the whole Activates the economy of the whole region. region.

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New developments with TAP Project

-- TheThe TransTrans AdriaticAdriatic PipelinePipeline (TAP)(TAP)

isis aa projectproject beingbeing promotedpromoted byby thetheSwissSwiss ElektrizitatsElektrizitats--GesellschaftGesellschaftLaufenburgLaufenburg (EGL)(EGL)..

--EGLEGL signedsigned anan agreementagreement ininFebruaryFebruary 20082008 withwith Norway’sNorway’sStatoilHydroStatoilHydro toto establishestablish aa5050//5050 jointjoint ventureventure toto buildbuildandand operateoperate thethe TAPTAP.. OnOn 2020

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andand operateoperate thethe TAPTAP.. OnOn 2020MayMay 20102010 EE OnOn RhurgasRhurgas isis thethenewnew shareholdershareholder ofof TAPTAPProjectProject..

--TheThe projectproject throughthrough aa separateseparatespurspur lineline alongalong thethe BalkanBalkan coastcoasttowardstowards CroatiaCroatia (the(the IonianIonian--AdriaticAdriatic--Pipeline)Pipeline) ––promotepromote thethedevelopmentdevelopment ofof aa broaderbroader regionalregionalgasgas marketmarket inin SEESEE..

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Proposed LNG Terminal projects, Proposed LNG Terminal projects, FieriFieri RegionRegion

�� Decision of the Council Decision of the Council of Ministers no.of Ministers no. 731, 731, 01.11.200601.11.2006 ““On the On the approval of the study approval of the study ““For the possibilities of For the possibilities of construction of the construction of the liquefied natural gas liquefied natural gas ((LNG) terminals and LNG) terminals and respective respective infrastructure, on the infrastructure, on the Fieri District seasisde”. Fieri District seasisde”.

LNG TERMINAL

Proposed byEGL

3636

�� Decision of the Decision of the Albanian National Albanian National Council of Territory Council of Territory Regulation, No. 1, date Regulation, No. 1, date 01. 03.2007 01. 03.2007 “For the “For the approval of the study approval of the study for the placement of for the placement of the liquefied natural the liquefied natural gas terminals and their gas terminals and their respective respective infrastructure on the infrastructure on the FieriFieri District seaside”.District seaside”.

LNG TERMINAL

Proposed by ASG Power

LNG

TERMINAL

Proposed by TRANS

EUROPEAN ENERGY

BV

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LNG Terminal project of the LNG Terminal project of the

“Trans European Energy BV” sh.a.“Trans European Energy BV” sh.a.

–– The Contract of the Permit The Contract of the Permit to the company to the company “Trans “Trans European Energy BV” sh.a. European Energy BV” sh.a. for construction of the LNG for construction of the LNG Terminal on the Fieri District seaside, is signed on 02 Terminal on the Fieri District seaside, is signed on 02 December 2008, in Tirana and is approved by the Council December 2008, in Tirana and is approved by the Council of Ministers. of Ministers.

3737

–– The LNG Terminal will have the capacity about 8 The LNG Terminal will have the capacity about 8 BCM/year, equal to more than 6 million ton natural gas BCM/year, equal to more than 6 million ton natural gas per year.per year.

–– The LNG Terminal will be capable to unloads ships with The LNG Terminal will be capable to unloads ships with capacity up to 140.000 m3. capacity up to 140.000 m3. On the plant will be instalated On the plant will be instalated two cryogenic storage tanks with net capacity 140.000 two cryogenic storage tanks with net capacity 140.000 m3, each of them.m3, each of them.

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Underground Gas Storage in AlbaniaUnderground Gas Storage in Albania

�� Albania has several suitable sites for gas storage, including, a Albania has several suitable sites for gas storage, including, a salt salt dome in dome in DumreaDumrea (up to 2 (up to 2 bcmbcm) and ) and the depleted the depleted DivjakaDivjaka gas fieldgas field (up (up to 1 to 1 bcmbcm).).

�� Based on a preliminary feasibility study, presented on the 3rd Gas Based on a preliminary feasibility study, presented on the 3rd Gas Forum in Ljubljana, Forum in Ljubljana, the possible UGS at the possible UGS at DumreDumre Salt Dome could have Salt Dome could have the cheapest cost for gas storage (76$/the cheapest cost for gas storage (76$/McmMcm))

3838

�� Is possible the cooperation between Albania and Greece for using of Is possible the cooperation between Albania and Greece for using of UGS In UGS In DumreaDumrea Salt Dome.Salt Dome.

�� By connecting these gas storage into regional gas network (including By connecting these gas storage into regional gas network (including Energy Community Ring), Albania could provide regional storage Energy Community Ring), Albania could provide regional storage facilities for other Balkan countries.facilities for other Balkan countries.

�� Therefore the design of underground gas deposits is a project of Therefore the design of underground gas deposits is a project of regional interest and with a particular importance for Albania.regional interest and with a particular importance for Albania.

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Location of possible underground gas storage. Location of possible underground gas storage.

DumreaDumrea Salt Dome and Salt Dome and DivjakaDivjaka Depleted Gas FieldDepleted Gas Field

Salt Dome

Depleted Gas Field of Divjaka

3939

Salt Dome

in Dumrea

of Divjaka

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�The main project on the connection of Albania with the regional oil pipeline network is the project on the Trans Balkan Oil Pipeline, Albania - Macedonia - Bulgaria –(AMBO project).

�Concerning this project, the Trilateral Convention has already entered into force, as of 1 October 2007, which was approved by Law No. 9778, dated 16.07.2007, “On the ratification of the Trilateral Convention between the Republic of

POSSIBLE CONNECTION OF ALBANIA WITH THE REGIONAL OIL PIPELINE NETWORK

4040

ratification of the Trilateral Convention between the Republic of Albania, Republic of Bulgaria and the Republic of Macedonia, on the Trans Balkan Oil Pipeline system”

�The propsed oil pipeline will have a capacity of 750 000 crude oil barrels a day (around 37 million tons a year) and the total investment (for all of its length) for this project will be around 1,75 billion USD.

�However, being of a regional strategic character, its progress is surely connected with the geopolitical developments in the region and further.

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POSSIBLE CONNECTION OF ALBANIA WITH THE REGIONAL OIL PIPELINE NETWORK

4141The Trans Balkan Oil Pipeline, Albania - Macedonia - Bulgaria –(AMBO project)

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TO SUPPORT THE DEVELOPING OF THE ENERGY SECTOR AND THE REGIONAL ENERGY INTEGRATION LBANIA HAS SIGNED:•“The Agreement between the Council of Ministers of the Republic of Albania and the Republic of Italy concerning the development and integration of electrical and natural gas systems”, signed in Tirana, on 10.03.2009.

•The Agreement between the Council of Ministers of the Republic of Albania and the Republic of Greece, “On cooperation in the energy field”, approved by DCM No 710, dated 18.10.2006, “On the approval of the Agreement, between the Council of Ministers of the Republic of Albania and the Republic of Greece, on cooperation in the energy field”.

VI.- INSTITUTIONAL RELATIONS ON REGIONAL COOPERATIONS

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Agreement, between the Council of Ministers of the Republic of Albania and the Republic of Greece, on cooperation in the energy field”.

•Memorandum of Understanding between the Ministry of Energy and Mines of the Republic of Kosovo and the Ministry of Economy, trade and Energy of the Republic of Albania, on cooperation in the energy field, signed in Pristina, on 09.09.2008.

•“The Ministerial Declaration on the Ionian – Adriatic Gas Pipeline Project”, between Croatia, Montenegro and Albania, signed in Zagreb (Croatia) on 25 September 2008. Bosnia&Herzegovina joined this Ministerial Declaration on 11 December 2008, during the Ministerial Meeting of the Energy Community Treaty, which was held in Tirana.

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�Reforming and empowering of Albania energy sector with the purpose of securing the energy supply for customers and a sustainable growth for of economy.

�The main objective of the GoA is to create a stimulating and attractive environment for investments on the development of the energy

CONCLUSIONS CONCLUSIONS

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investments on the development of the energy sector in Albania!

�Diversification, Modernization and Regional Integration of the Energy Infrastructure, are Albania’s strategic priorities in its energy cooperation, and an important orientation for a successful development of the energy sector in Albania and the whole region.

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CONCLUSIONS CONCLUSIONS

� Improving of the neighboring and regionalcooperation is the most successful way todevelop local and regional energy sector and toestablish an integrated energy market overSouth East Europe.

� Preparation of the necessary legal and

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� Preparation of the necessary legal andinstitutional framework of energy sectorreferred to the provisions of the EnergyCommunity Treaty (EU Directive), as a keyissue.

� There are in place a lot of prospects for thelinking of the country with existing regionalenergy networks and the future gasinfrastructure of the Energy Community.

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CONCLUSIONS CONCLUSIONS

�� FurtherFurther developingdeveloping ofof thethe maritimemaritime petroleumpetroleumtransportransportt toto guaranteeguarantee aa securesecure supplysupply ofof thethemarketmarket withwith lowerlower costcost forfor thethe consumersconsumers..

� Developing of the underground gas storagecapacities and LNG terminals, in parallel with

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capacities and LNG terminals, in parallel withgas pipeline projects development, is anotherobjective of Albania towards its gasification.

� The integration of Albania in the European gasmarket is one of the most important objective ofthe GoA.

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THANK YOU FOR YOUR THANK YOU FOR YOUR

METEMETEMETEMETE

4646

THANK YOU FOR YOUR THANK YOU FOR YOUR

ATTENTIONATTENTION

[email protected]@mete.gov.al

www.mete.gov.alwww.mete.gov.al