Page 12 - GLNG Week 42 2022

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Albania’s gas master plan

POLICY ALBANIA relies mostly on hydropower to gen- after the vessel finishes its current contract off
erate electricity – 94% of its mix – and to a much the coast of Israel at the end of this year and
lesser extent on coal. This exposes the small undergoes some modifications. Both the termi-
impoverished Southeast European country to nal and the Vlore power station are anticipated
significant risks. In periods of drought, Alba- to go online in the second quarter of next year.
nia must source its power needs from imports, The agreement also covers the provision of
and this can prove incredibly costly, especially two floating generators that will be positioned
as drought in Albania is often accompanied by near the Narta power plant, providing Albania
drought in other countries in the Balkan region with emergency power supply when the country
where hydropower comprises a significant share needs it.
of the energy mix. Further expanding its LNG ambitions, Alba-
Albania’s solution has been to pursue natu- nia had Albgaz sign an agreement with Excel-
ral gas. The country currently consumes barely erate and Italy’s Snam on looking at ways of
any of the fuel, but it envisages using 2.4bn cubic connecting the Vlore LNG terminal with other
metres per year of gas by the end of the decade. gas infrastructure in Albania. Snam in March
But developing a gas sector will require substan- 2021 also agreed to study the development of
tial investment in the necessary infrastructure. an underground gas storage facility in Albania’s
Today, the country has a gas pipeline net- Dumre area with a capacity of 800mn cubic
work that extends close to 500 km, but this is a metres.
relic from decades ago when the country had Meanwhile, the Delvina Gas Company sub-
some significant domestic supply. Most of this mitted an application in May to restore gas pro-
network is now non-operational, and requires duction at existing wells at the Delvina block.
extensive repair. This said, the country hosts Currently, what gas is produced in Albania is in
part of the Trans-Adriatic Pipeline (TAP) that the south of the country, at the Divjaka and Fra-
funnels gas from Azerbaijan to Greece and Italy. kull fields, as well as some associated supply at
Albania has made some progress in realis- the Ballsh oilfield.
ing its gas ambitions recently. In July last year, Besides the gas development plan, Albania’s
its government and its national gas transmission government is also looking to expand domestic
system operator Albgaz signed a deal to build sources of renewable energy. There is a further
an interconnection point with TAP. Earlier 1.5 GW of hydroelectric capacity under devel-
that year, the government also signed a mem- opment, and a further 615 MW being consid-
orandum of understanding (MoU) on the con- ered, but these projects face a public backlash
struction of an LNG import terminal that will over environmental concerns. At the same
be linked via the Fier-Vlore pipeline to TAP. time, Albania has faced criticism for wanting
This would enable the country to use gas at the to expand gas use, as hydroelectric dams are a
98-MW Narta power plant in Vlore – a facility source of zero-carbon electricity. But this claim
that was completed many years ago to be capable fails to take into account the fact that Albania
of running on both gas and coal, but was never must resort to power imports when its hydro-
commissioned because of design flaws in its electric output falls too low, and much of that
cooling system. power comes from the coal-fired power gener-
Last year, a deal was struck with ExxonMobil ation that is dominant in the Balkans.
to build a liquefaction plant to provide the Vlore Beyond hydroelectric projects, Albania is also
power station with gas, once it has been reno- eager to tap its largely undeveloped solar and
vated. Spain’s Enagas is eyeing involvement in wind power potential. While estimates vary, it is
the project, signing a memorandum in June on considered that Albania could produce as much
potential stake ownership in Albgaz. as 2.4 GW of solar power and 4.2 GW of onshore
Albania has also successfully obtained a float- wind. Currently, though, the country only has
ing regasification and storage unit (FSRU) for the 22 MW of active solar power generation, and no
Vlore LNG terminal. US company Excelerate wind projects at all.™
Energy is expected to deploy its FSRU Excelsior

P12 www. NEWSBASE .com Week 42 21•October•2022