Trans Adriatic Pipeline (TAP) AG is a joint venture company established with the purpose of planning, developing and building the TAP natural gas pipeline. TAP’s shareholding is now comprised of BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), EON (9%) and Axpo (5%).
TAP will transport natural gas from Shah Deniz II field in Azerbaijan to Europe. The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy. Accordingly, Albania will become a central transit country for gas supply to the European Union. TAP is expected to promote the economic development and job creation along the pipeline route, including Albania. It will be a major source of foreign direct private investment as it is not dependent on grants or subsidies. TAP operations are expected to commence in year 2020.
The Government of Albania is committed to support the TAP project through several steps of State authorizations and permits. At the end of 2013 the Council of Ministers established the Multi-institutional group for coordination of work in implementing the TAP project in Albania (CMD no. 1081 dated 18 December 2013).
Albania TAP’s Government Host Agreement approved by Law no. 116/2013 dated 15 April 2013 and other related agreements can be accessed in MEI website – www.energjia.gov.al. According to MEI, the agreement does not foresee any transition fee.
In addition to expected macroeconomic economic benefits from gas utilization and infrastructure, Albania is also expected to benefits 7 million EUR for capacity building and compensation for the community in the TAP route area.