Albania Approves First Phase of TAP

The Albanian National Territory Council (KKT) gave the green light to the first phase of the TAP project. 

‘The Compound Development Permit - Phase 1 (CDC- Phase 1) is one of the most important permits granted to TAP AG by the Albanian authorities. It represents the permit which will authorise TAP AG to start its construction activities in Albania,’ reads a note released on Tuesday.

KKT is the highest authority in the country for territorial planning. The permit refers to the entire TAP pipeline system. The Ministry of Energy and Industry will be then called to issue permits for different sections and phases. 

‘The construction activities will start with the upgrade and construction of access roads and bridges in Albania in 2015 and this will be followed by the pipeline laying and construction of other facilities associated with this gas transportation infrastructure,’ reads the press release. 

The construction cost for the Albanian section is forecasted to be around 1 billion Euros. 

“We are honoured to receive today the approval of the highest Albanian authority on territorial planning, the National Territorial Council. This permit clears the way for the start of the construction activity for TAP in Albania,” Shkelqim Bozgo, Country Manager of TAP Albania, said in the communiqué. 

The current shareholders in TAP AG are BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%). 

Last year, the consortium clinched gas sales agreements with European buyers for some $100 billion. The nine buyers, mainly from Italy, committed to a 25-year gas supply.