SOCAR, Albgaz to launch first city's gas infrastructure development in Albania in 2025

BAKU. Nov 18 (Interfax) - State Oil Company of the Azerbaijani Republic (SOCAR) and Albania's Albgaz plan to begin implementing a pilot project for gas infrastructure development in the city of Korce in 2025, a source from SOCAR told Interfax.

"Last week, the Albanian Infrastructure and Energy Ministry, Albgaz and SOCAR signed a memorandum of cooperation aimed at developing gas infrastructure in Korce. The feasibility study for the project is already complete. The development of the city's gas infrastructure will begin in 2025 and will be completed by 2027," the source said.

The source did not specify the amount of investment but said that the project aims to supply gas to both households and businesses in Korce. Initially, the focus will be on establishing a gas distribution network throughout the city, with particular emphasis on serving local enterprises. The distribution system will be connected to the exit point of the Trans Adriatic Pipeline, which delivers natural gas from Azerbaijan to Europe via Albania.

Korce was chosen as the pilot project for Albania's national gas infrastructure development strategy, supported by SOCAR, because the city's residents have proven to be responsible in paying for utilities, with no outstanding debts to water, sewage, or electricity companies, the source said.

"In the future, this project will be expanded to the cities of Pogradec and Erseke. Overall, Albanian authorities aim to complete development of the country's gas infrastructure by 2030," the source said.

Azerbaijan has gas supply contracts with eight European countries - Italy, Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia and Croatia. Among them, three countries (Italy, Greece, and Bulgaria) have long-term contracts with fixed supply amounts, while the others have contracts without specified purchase amounts.

Last week SOCAR signed a memorandum with Slovakia on supplying gas and a short-term contract with North Macedonia.

Azerbaijan's gas exports are forecasted to reach 25 billion cubic meters in 2024, with 12.5 billion cubic meters planned for delivery to Europe.