Albanian Parliament Ratifies Host Government Agreement Between Albania and TAP

April 18, 2013

The Albanian Parliament has unanimously ratified the Host Government Agreement (HGA) between the Government of Albania and the Trans Adriatic Pipeline (TAP) project on the 15th of April in Tirana.

The HGA defines the terms of engagement for the Southern Gas Corridor pipeline’s future delivery. Upon decreeing by the President of the Republic of Albania, the HGA will become a fully binding law. The HGA sets out the regulations by which the project will be realised and operated on Albanian territory. This includes processes on land easement and acquisition, the implementation of technical, safety, environmental and social standards and permitting regulations.

TAP will be one of the largest foreign investors in Albania, providing a major source of revenue to the country and stimulating employment. Furthermore, it will also contribute to the development of Albanian roads and other infrastructure. The project will play a major role in developing Albania’s energy market and facilitating the government’s objective of becoming a gas hub in the Western Balkan region.

Kjetil Tungland, Managing Director of the Trans Adriatic Pipeline, stated: "We are impressed by the quick progress with the ratification of the HGA. TAP greatly appreciates the outstanding support Albania has given to our pipeline project, now again confirmed by the Albanian Parliament.”

The Albanian section of the pipeline will start at Bilisht Qendër in the Korca region at the Albanian-Greek border, and will stretch some 209km to the coastal area north of Fier, where it will join the Adriatic Sea. The Albanian offshore section will be 60km in length.
About the Trans Adriatic Pipeline (TAP)

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to the most attractive markets in Europe.

The 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.

TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy, the third largest gas market in Europe, provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.

Designed to expand the capacity from 10 to 20 bcm per year, TAP will open up the so-called Southern Gas Corridor, enhancing Europe's energy security by providing a new source of gas.
TAP’s shareholders are Axpo of Switzerland (42.5%), Norway’s Statoil (42.5%) and E.ON Ruhrgas of Germany (15%). Shah Deniz Consortium members – BP, SOCAR and Total - have the option to join TAP, if it is selected in June 2013 as the gas transportation route to Europe, and they are currently funding the development of the TAP project.

SOURCE: TAP Press Office.