Albania to start utilizing Azerbaijani gas for energy needs by 2026

Albania is set to commence the utilization of Azerbaijani gas for its own needs by 2026 in a move to diversify its energy sources and reduce reliance on hydropower.

Plans are underway to develop the necessary distribution infrastructure for this purpose, according to S&P Global Ratings, Report informs.

"In addition, existing infrastructure, such as the Trans-Adriatic Pipeline (TAP), aims to diversify Albania’s energy sources and reduce its reliance on hydropower. The primary role of TAP in Albania is to facilitate the transit of gas from Azerbaijan to European markets, including Italy," noted S&P.

Annual supplies of Azerbaijani gas to Albania are expected to reach about 200 million cubic meters, coinciding with the first stage of the expansion of the Trans Adriatic Pipeline to an additional 1.2 billion cubic meters, with 1 billion cubic meters destined for Italy.

Albania will become the ninth buyer of natural gas from Azerbaijan, joining Italy, Greece, Bulgaria, Romania, Georgia, Türkiye, Hungary, and Serbia. Additionally, there is significant interest from other countries including Bosnia and Herzegovina, Montenegro, Croatia, Slovakia, and North Macedonia to procure gas from Azerbaijan.

Azerbaijan has significantly increased its natural gas exports to Europe, rising from 8 billion cubic meters in 2021 to 11.8 billion cubic meters in 2023. Last year, the country exported a total of 23.8 billion cubic meters of gas.

Under the memorandum with the EU, Baku is obligated to increase natural gas supplies to Europe to 20 billion cubic meters by 2027.

Gas supplies from Azerbaijan to Europe via the Trans Adriatic Pipeline, originating from the Shah Deniz gas condensate field, commenced at the end of 2020. The pipeline currently has a throughput capacity of 12 billion cubic meters of gas per year.

The Trans-Adriatic Pipeline spans a total length of 878 km, with 550 km passing through the northern part of Greece, 215 km through Albania, 105 km along the bottom of the Adriatic Sea, and 8 km through Italy.

"Azerbaijan’s proven natural gas reserves amount to 2.6 trillion cubic meters. The country boasts several more promising gas fields, including Babak, Absheron, Umid, and Karabakh," stated industry experts.

With Albania poised to join the ranks of European nations benefitting from Azerbaijani gas, the energy landscape of the region continues to evolve towards greater diversification and cooperation.