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The Albanian Government and TAP agree the contents of a Host Government Agreement

18 January 2013

On 18th January 2013, the Albanian 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.

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About TAP

The Trans Adriatic Pipeline (TAP) is a natural gas pipeline project. The pipeline plans to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. TAP will open a new so-called Southern Gas Corridor to Europe and establish a new market outlet for natural gas from the Caspian Sea.

TAP’s shareholders are Axpo of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON Ruhrgas of Germany (15%).

The project is designed to expand transportation capacity from 10 to 20 bcm per year. TAP also envisages physical reverse flow of up to 80 per cent and the option to develop natural gas storage facilities in Albania to further ensure security of supply during any operational interruption of gas deliveries.

Currently, TAP is waiting to be selected as the preferred gas transportation solution by Shah Deniz Consortium in Azerbaijan in 2013. Once the final investment decision on the pipeline is made and all necessary approvals received, TAP will start the construction (expected in 2015).

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.

For media enquiries, please contact:Media@tap-ag.com