Balkan energy bridge brings Baku, Tirana positions closer together An observation by Caliber.Az

Against the background of the global fuel crisis and the war in Ukraine, cooperation between Azerbaijan and the EU in the field of energy security has become of strategic importance. A special place in this process is given to the supply of Azerbaijani "blue fuel" along the Southern Gas Corridor (SGC) to Italy, Greece, Bulgaria, and eventually to other Southern European countries, as well as Albania. Baku is ready to cooperate with Albania not only as a gas supplier, but also as an investor in energy and possibly tourism infrastructure. Prospects of Azeri-Albanian business relations and other issues were discussed during the state visit of Azerbaijani President Ilham Aliyev to Tirana on November 15.

The visit of the President of Azerbaijan to Albania bares significance, especially against the backdrop of the complex geopolitical processes caused by the war in Ukraine, which has brought an unprecedented energy crisis to the countries of "the old world". The tragic events of this year, which resulted in political chaos and the collapse in markets for food, fertilizer, fuel, and transportation in the vast Eurasian area, have reshaped all traditional economic ties in the region.

Considering these negative developments, Azerbaijan looks like an island of stability, a country that confidently fulfills its obligations as a sustainable supplier of energy sources, providing reliable energy security for the European states and several other neighbouring countries. In July 2022, Azerbaijan and the EU signed a memorandum of understanding on a strategic partnership in the energy sector. In particular, the memorandum noted the need to double the export of Azerbaijani natural gas to Europe to approximately 20 billion cubic meters by the end of 2027. It also included plans for appropriate measures that will increase the capacity of the Trans Adriatic Pipeline (TAP) by installing new compressors in Greece and Albania. According to the TAP company, the expansion of the pipeline is planned to start in 2023-2024, which will increase the supply of Azerbaijani gas to new countries.

Following the new strategic agreements with the EU from September-October of this year, Azerbaijani President Ilham Aliyev made visits to Italy and Bulgaria, during which the most important aspects of the gas strategy were discussed, including new opportunities that will arise from the commercial launch of the Greece - Bulgaria interconnector (IGB).

The state visit of President Aliyev to Albania and his talks with President Bajram Begaj, as well as with members of the government of the republic, was another step to promote Azerbaijan’s business interests in Southern Europe.

"I am here in your beautiful country for the first time, I am sure that this visit will give a strong boost to relations between our governments. Azerbaijan’s gas contributes to Europe’s energy security, and we plan to double the supply by 2027. It is understood, that this gas will pass through the territory of Albania and, thus, additional support will be provided, a contribution to the energy security of Europe will be made", said President Ilham Aliyev, touching upon the prospects of energy cooperation between the two countries.

The head of state also noted that, as participants of the TAP project, Azerbaijan and Albania played a very important role in its implementation, in particular, the Albanian representatives with having always actively participated in the meetings of the Advisory Council of the SGC, chaired by Azerbaijan and the EU.

The energy track is probably the most important in the relations between Baku and Tirana, and a significant part of the talks during this visit was devoted to this topic. It should be recalled here, that in July 2021 the association of TAP, the ministry of infrastructure and energy of Albania and its gas company Albgaz signed a cooperation agreement according to which TAP will design, purchase and build an exit point for Albania in the city of Fieri. Albania’s requests for the supply of Azerbaijani gas are concentrated on the period of 2023-2031. Approximately 215 kilometres of the TAP pipeline pass through Albania and will be continued by the Ionian-Adriatic Pipeline Project (IAP), which will start in Albania and eventually extend to Montenegro, Croatia and Bosnia and Herzegovina, thus not only improving Albania’s gas supply but also strengthening its position as a regional energy hub.

The Albanian government also hopes to attract Azerbaijani investments to modernize the Republic’s gas distribution infrastructure. As early as December 2014, a memorandum of understanding on cooperation in developing the master plan for the gasification of Albania was signed between the two governments.

During the talks in Tirana, the two leaders again discussed the prospects of cooperation in the energy sphere, including Azerbaijan’s participation in the development of Albania’s gas economy.

"We have certain thoughts on this: no gas network has been set up in Albania to this day, and Azerbaijan can participate as an investor in this sphere, we are ready for it. We will discuss this and other energy-related issues today and in the future", the Azerbaijani President said.

Meanwhile, the energy sector is not the only direction where Baku and Tirana plan to actively cooperate in the foreseeable future.

"I gave the best evaluation of our political dialogue and cooperation, and I am convinced that this visit will provide a stimulus to bilateral cooperation in the future in areas of mutual interest. Thus, Albania is interested in deepening cooperation with Azerbaijan in such areas as trade, infrastructure, agriculture and, in particular, tourism, which is another important sector of our two economies. Azerbaijan has considerable experience in the sphere of tourism, which we can make use of", Albanian President Bajram Begaj said.

It is worth noting, that Baku and Tirana have already taken the first steps for the development of tourism: Azerbaijani citizens do not require a visa to Albania, the visa barrier was removed in May 2011. The two countries are discussing the possibility of opening direct flights between the capitals, the possibility of opening an Azerbaijani embassy in Tirana, as well as opening offices of leading Azerbaijani exporting companies in Albania.

Moreover, there is considerable potential for investment in the sea resorts of Albania, where 80% of the picturesque Mediterranean coast is not developed, and the Albanian government is fully interested in attracting Azerbaijani investors. Until recently, the Azerbaijani business has actively invested in the tourism sector of Montenegro and Turkey and, in this regard, accumulated a lot of experience that can be implemented in Albania.

At the same time, Albanian construction companies are ready to participate in contracts for the reconstruction of Karabakh. This interest is fully realized, as Tirana has consistently supported the territorial integrity and sovereignty of Azerbaijan over the past decades. It’s just position in the Karabakh conflict and this friendly position is highly valued in Baku.

In a statement to the press, the two presidents stressed their mutual readiness to further deepen trade, economic and investment cooperation and others. In this regard, Baku and Tirana intend to accelerate the preparatory process to hold the first meeting of the joint working group on economy and industry as soon as possible.

"Our talks focused on the need to identify areas of common interest and specific ways to deepen cooperation. To this end, it is planned to create a joint economic commission in 2023 - the optimal political and technical tool for determining specific milestones of cooperation and program continuity for the coming years", Albanian President Bajram Begaj said concludingly on the results of President Ilham Aliyev’s state visit.