Albania and TAP Agree to Host Government Agreement
Albania's Ministry of Economy, Trade and Energy and the Trans Adriatic Pipeline project (TAP) initialed a Host Government Agreement (HGA), thereby formally securing the contents of the HGA, prior to ratification in the coming months.
The Host Government Agreement sets out the parameters of engagement between TAP and the Albanian Government as the project progresses.
Included in the contents of the HGA are agreed processes on the implementation of:
- TAP’s Land Easement and Acquisition Process
- TAP’s Permitting Process
- The implementation of Technical & Safety Standards
- The implementation of Environmental, Social, and Community Health & Safety Standards
In addition, TAP has also agreed to provide technical support for the development of the local Albanian gas market.
TAP intends to implement the project in accordance with the Performance Requirements of the European Bank for Reconstruction & Development.
TAP is one of the largest planned foreign investments in Albania of approximately 1 bln Euros. During construction TAP will bring employment to the country in many areas such as transport and communications, manufacturing and utilities, trade, financial and business services. It will also contribute to the development of infrastructure in the country such as roads.
TAP will be key in the development of an Albanian gas market as it provides critical infrastructure that will enable Albania to connect to regional gas networks. Further benefits to the Albanian economy, and more widely to society, will be derived from TAP’s Corporate Social Responsibility (CSR) programme.
Kjetil Tungland, TAP's Managing Director, stated: "I am delighted to have agreed upon the contents of a Host Government Agreement and would like to thank the Albanian Government for their commitment in progressing our mutual cooperation, as well as the strong support they continue to show towards the TAP project. This is another great step forward in the realization and development of TAP, which will contribute to advancement of Albania’s gas market."
TAP will take natural gas from the giant Shah Deniz II development in Azerbaijan, via Greece and Albania, across the Adriatic Sea to southern Italy, allowing further transport into Western Europe. In addition, TAP will include exit points along its route to allow connection to local and regional gas markets.
Designed to expand the transportation capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas Corridor, which will enhance Europe's energy security by contributing to the diversification of the region's gas supplies.
TAP proposed route in Albania
TAP’s route in Albania was identified during extensive pipeline route refinement studies in 2009- 2012. In particular, special consideration was given to the avoidance of sensitive natural habitats.
Albanian section of the TAP pipeline will start at Bilisht Qendër in Korça region at the Albanian-Greek border. The landfall for the onshore part will be located in the coastal area north of Fier. TAP pipeline in Albania will be about 209 km long onshore and 60 km offshore in the Albanian section of the Adriatic Sea.
TAP will be one of the largest foreign direct investments in Albania and it will help to develop the country’s energy infrastructure and thereby foster economic growth by creating employment and developing local skills.