Brief project description
The project aims to establish a new supply route for natural gas from the Middle East and Caspian Region transported by Trans Adriatic Pipeline, north-eastwards of the Western Balkan area towards Kosovo, Serbia and Macedonia. The ALKOGAP project however shall be planned as bi-directional pipeline, so the possible supply direction could also be north – south, from the Energy Community Gas Ring (ECGR), or other sources. The benefits will include:
- introducing an environmentally more acceptable energy source in the region (replacement for firewood, coal, fuel oil and complementary generation to renewable energy, and the potential for increased cogeneration and CHP);
- facilitating the gasification of considerable eastern parts of Albania and Kosovo;
- providing diversified gas supply to the region; - providing the access to Albanian storage capacities;
- providing significant transit capacity and income to Albania and Kosovo;
- creating the preconditions for supporting the regional concept of South European Gas Ring;
- Reducing CO2 emissions in the region and facilitating economic development.
The Albania-Kosovo Gas Pipeline (ALKOGAP) project is to interconnect the existing and planned gas transmission system of the Republic of Albania (including TAP project) with the future projected gas transmission system of the Republic of Kosovo, and the transmission interconnectors which are part of eastern brunch of Energy Community Gas Ring (ECGR), as well. The project aims to establish a new supply route for natural gas from the Middle East and Caspian Region transported by Trans Adriatic Pipeline, north-eastwards of the Western Balkan area towards Serbia. The ALKOGAP project however shall be planned as bi-directional pipeline, so the possible supply direction could also be north – south, from the ECGR, or other sources. The construction of this transmission pipeline would enable the gasification of Albania and Kosovo and providing a diversified and reliable natural gas supply. The pre-feasibility study was completed in December 2018. According to this study, the length of this pipeline is 215 km, diameter of 24 inches, with an annual transmission capacity to Kosovo of about 2.1 bcm (forecast for year 2040). It would be possible to increase its capacity (double or triple), in the case that ALKOGAP will be used to supply Serbia and other countries with Caspian or Middle East gas. This transmission connection, besides benefits to the European market, would also provide a significant economic development incentive to the transited countries.
Being part of ECGR, this regional project is of Energy Community significance and complies with the EU established criteria for Trans-European Networks for Energy. This project is in line with the aims of the Energy Community Treaty, establishing the regional gas market, integrated with EU energy market. The Albania-Kosovo gas pipeline is considered part of the Energy Community Gas Ring, which is the concept of gasification for entire region, proposed by the WB Study and accepted by the Gas Fora of the Energy Community. The proposed project is in line with Albanian Government priorities in the gasification of the country and in the gasification of the EU countries and Contracting Parties of the Energy Community.
Albania: The project is fully in line with the EU’s pre-accession strategy (to develop the regional energy market and strengthen energy security) and the national IPA programme for Albania. Albania still remains unconnected to the regional and European gas network and there is no natural gas industry and gas market in the country. The diversification of sources and routes of the energy supply, to increase the security of energy, is a strategic objective of Albania. National energy strategy of Albania of 2018 - 2030) which is been approved by DCM no. 480, of 31.07.2018, indicates that the top priority for Albania is the securing of new supplies for oil and natural gas through by participating in the regional and international gas network projects. Within the framework of the regional initiatives and the Energy Community goals, Albania fully supports the development of a Western Balkan Gas Ring, part of which is considered the IAP and TAP gas pipeline projects.
In this context linking Albania to regional and international gas network will have a very positive impact for the country gasification and energy supply situation. For this gas pipeline, it may be possible to utilize the potential storage of natural gas in Albania (Dumrea area and the depleted gas field in Divjaka). On 23 September 2015 the Albanian Parliament approved the Law no. 102/2015, date 23.09.2015, “On natural gas sector”, as amended, published on the Official Gazette no. 178, date 15 October 2015. In this legislation (gas law and its secondary legislation, which will be prepared), are included gas sector activities transmission, distribution, supply, storage, GNL, market regulation (primary and secondary market), competition and inspection.
Kosovo*: currently there is no functional infrastructure and natural gas market. However, in order to initiate the perspective of the natural gas sector development and fulfillment of obligations that Kosovo has as a member of the Energy Community Treaty, the Government of the Republic of Kosovo through the Ministry of Economic Development has prepared the Third Package of Primary Energy Legislation, based on the requirements of EU legislation (the relevant Directives and Regulations). The Law no. 05 / L-82 on Natural Gas, adopted by the Assembly of the Republic of Kosovo on 13 July 2016, is also included within the framework of the Third Energy Package. The Law on Natural Gas defines the principles for the organization and functioning of the natural gas sector, market access, criteria and procedures for issuing authorizations for transmitting, distributing, supplying, using, storing natural gas and operating systems.
In addition to the primary legislation there is also secondary legislation, the Administrative Instruction (MED) Nr. 08.2017 on the security of natural gas supply, approved on 23.10.2017 by Minister of Economic Development. This Administrative Instruction aims to establish measures for the security of natural gas supply as well as rules for safeguarding of the adequate level of security of supply, ensuring the proper and continuous functioning of the internal market of natural gas. Diversification of energy resources and increased security of energy supply is a strategic goal of Kosovo. Referring to the Energy Strategy of the Republic of Kosovo 2017-2026, a document that guides the energy sector policies, within the framework of its objectives, has also addressed the objective of developing natural gas infrastructure.
In implementation of the Energy Strategy of the Republic of Kosovo 2017-2026, according to Decision no. 01/57 on 17.07.2018, the Government of Kosovo has approved the document of Energy Strategy Implementation Program (ESIP) 2018-2020. The framework of this document (ESIP 2018-2020) has identified detailed activities for implementing the measures previously described in the Energy Strategy of the Republic of Kosovo 2017-2026, including activities related to the natural gas component. In order to open the prospect of natural gas development in Kosovo, MED under the projects of interest of the energy sector, has proposed to the National Council for Investment, the project for Natural Gas, which is listed as a priority in the framework of the projects of national interest initiated for energy, approved by the National Council for Investment, on 09/12/2015. Increasing the diversity of primary energy sources is considered a very important component for sustainable and qualitative energy supply. In this regard, developing the natural gas sector in Kosovo through inter-connections with other gas infrastructure projects in the region, especially the Energy Community Gas Ring, respectively the connection to the TAP / IAP pipeline system is evaluated as a real opportunity for future supply with natural gas.
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Basic project data
Descriptions |
Albania |
Kosovo* |
Project promoter company/Organization full name |
Ministry of Infrastructure and Energy of Albania Republic
|
Ministry of Economic Development of Kosovo Republic |
Shareholders of the project promoter company
|
Ministry of Infrastructure and Energy of Albania; Albgaz sh.a-Gas System Operator; |
Ministry of Economic Development of Kosovo |
Project name
|
Albania to Kosovo Gas Pipeline (ALKOGAP)
|
Albania to Kosovo Gas Pipeline (ALKOGAP) |
Project PECI or PMI
|
PECI |
PECI |
Project Code on the current (2018) PECI/PMI list
|
Gas_13 |
Gas_13 |
Project Name on the current (2018) PECI/PMI list
|
Albania - Kosovo Gas Pipeline (ALKOGAP) |
Albania - Kosovo Gas Pipeline (ALKOGAP) |
Project Code on the current (2017) EU PCI list |
|
|
Project Name on the current (2017) EU PCI list |
|
|
Project final investment decision status |
FID |
Non-FID |
Project Name in the ENTSO(G/E) TYNDP 2018 Submission |
Albania - Kosovo Gas Pipeline (ALKOGAP) |
Albania - Kosovo Gas Pipeline (ALKOGAP) |
Project Code in the ENTSO(G/E) TYNDP 2018 Submission |
TRA-F-1028 |
TRA-F-1028 |
Project Name in National NDP /Infrastructure Plan |
IAP-Kosovo |
Project ALKOGAP |
Project Code in National NDP /Infrastructure Plan |
The Projects in the National General Plan of Albania don't have codes.
|
Project ALKOGAP |
National NDP / Infrastructure plan publication year |
2016 |
2017 |
National NDP/infrastructure plan publication website |
2016 - National General Plan of Albania |
Strategies-section of the ministry's website
|
Project website according to Article 9(7) of Regulation (EU) 347/2013 |
|
PECI-section of the ministry's website |
Name/website of the designated competent authority in the country |
Ministry of Infrastructure and Energy of Albania Republic |
Ministry of Economic Development of Kosovo Republic |
Address of the designated competent authority in the country |
Street "Abdi Toptani", 1001 Tirana, Albania
|
Square "Zahir Pajaziti", No.36, 10000 Prishtina, Republic of Kosovo |
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Project details - technical information
|
Albania section |
Lezha/Milot (IAP Connenction)/610 mm; 108.3 km; |
Kosovo* section |
Prizren/CTMS Border Albania-Kosovo/610 mm/103.9 km;
|
End point in country (Town/Interconnection Point) |
Albania section |
Kukës/Albania Kosovo Border/610 mm; |
Kosovo* country 2 section
|
Prishtina/PRMS Prishtina 2/610 mm; |
Pipeline capacity at border point |
Albania |
Kosovo* |
X --> Exit (GWh/d) |
47,8– 63,7
|
Albania - 348,082 m3/h - According to 24 inch option of the Pre-feasibity Study (PFS) finalized in 2018. |
X<-- Entry (GWh/d) |
15.9 – 22.3 |
Kosovo - 348,082 m3/h- According to 24 inch option of the Pre-feasibity Study (PFS) finalized in 2018
|
Compressor station location and capacity (MW) |
Albania |
Kosovo* |
Name of the compressor station |
A potential Compresor Station will be located in Dardhe (near to the Albania-Kosovo Border, within Albania territory. |
n/a |
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Project Implementation Plan Article 5(1)
Project Pre-feasibility Assessment |
Albania |
Kosovo* |
Start: 2018, January |
End: 2018, November |
Start: 2018, January |
End: 2018, November |
Details - Explanation |
Pre-feasibility Study has been concluded in November 2018. |
Pre-feasibility Study has been concluded in November 2018. |
Percentage Done (%) |
100% |
100% |
Feasibility Assessment, ESIA/EIA and Design Studies |
Albania |
Kosovo* |
Start: 2019, September |
End: 2020, December |
Start: 2019, September |
End: 2020, December |
Details - Explanation |
Ministry of Infrastructure and Energy is applying for a technical assistance grant for the Preparation of Feasibility Study, ESIA/EIA for the Albania to Kosovo Gas Pipeine. Although, it is important to mention, that the time schedule can be changed, they are not fixed. On the frame of the Pre-feasibility Study, an Initial Environmental and Social Estimate (IESE) report is been prepared, so for that we are going to put 10% of the Percentage Done. |
On the frame of the Pre-feasibility Study, an Initial Environmental and Social Estimate (IESE) report is been prepared, so for that we are going to put 10% of the Percentage Done. |
Percentage Done (%) |
10% |
10% |
FEED/Main Design |
Albania |
Kosovo* |
Start: 2021, April |
End: 2022, December |
Start: 2021, April |
End: 2022, December |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Percentage Done (%) |
|
|
Market Survey - Open Season/Capacity Auction |
Albania |
Kosovo* |
Start: |
End: |
Start: |
End: |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Percentage Done (%) |
|
|
Permitting |
Albania |
Kosovo* |
Start: |
End: |
Start: |
End: |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Percentage Done (%) |
|
|
Regulatory/Authority Approval of the project |
Albania |
Kosovo* |
|
|
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Final Investment Decision taken |
Albania |
Kosovo* |
|
|
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Tendering |
Albania |
Kosovo* |
Start: 2023, January |
End: 2023, April |
Start: 2023, January |
End: 2023, April |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Percentage Done (%) |
|
|
Construction |
Albania |
Kosovo* |
Start: 2024, January |
End: 2026, December |
Start: 2024, January |
End: 2026, December |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Commissioning |
Albania |
Kosovo* |
2027, March |
2027, March |
Details - Explanation |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
Comment: The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
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Project Annual Report Article 5(4)
Project evolution since 2013 |
Albania |
Kosovo* |
Evolution driver description |
Rescheduled.
|
Rescheduled. |
Explanation |
The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions. |
The date of specific implementation phase is not yet known. We are going to fulfill this schedule related to a preliminary plan created by both institutions.
|
Mitigation measures to ensure project schedule |
Ministry of Infrastructure and Energy of Albania is going to support the implementation of the project in every step. |
Ministry of Economic Development of Kosovo is going to support the implementation of the project in every step. |
Project implementation actions conducted since 2016 |
Albania |
Kosovo*
|
Project development |
Since 2016, Ministry of Infrastructure and Energy has applied to WBIF for the Technical Assistance in order to prepare the Feasibility Study for this project. WBIF has approved only a grant of 300.000 Euro in order to prepare the Preafisibility Study, which has been concluded in November 2018. |
Permit Granting |
No step |
No step
|
Consultation procedures |
No step |
No step |
Construction |
No step |
No step |
Commissioning |
No step |
No step |
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Project CAPEX and financing information
CAPEX Information |
Albania |
Kosovo* |
2018 |
0.1 mEUR
|
0.2 mEUR
|
2020 |
0.725 mEUR |
0.725 mEUR |
2022
|
1.375 mEUR |
1.375 mEUR |
2025
|
75 mEUR |
30.479 mEUR |
2026
|
75 mEUR |
30.479 mEUR |
Project CAPEX SUM |
215.468 mEUR
|
Project CAPEX certainty (+/-%)
|
10% |
10% |
Has the project CAPEX estimate changed since PECI/PMI submission |
The capex estimate has changed since PECI/PMI submission. The changes are not large. The new capex estimate is refer to the Pre-feasibility Study of the Albania-Kosovo Gas Pipeline. |
The capex estimate has changed since PECI/PMI submission. The changes are not large. The new capex estimate is refer to the Pre-feasibility Study of the Albania-Kosovo Gas Pipeline. |
Financing Information |
Albania |
Kosovo* |
Applied for IFI Financing (yes/no) |
|
|
Granted (yes/no) |
|
|
Which institution and in what is the amount (mEUR)
|
WBIF/Technical Assistance for the preparation of Prefeasibility Study and an Initial Environmental and Social Estimate report for ALKOGAP Project. In fact the Ministry of Infrastructure and Energy has applied for full amount in order to prepare also the Feasibility Study and full ESIA, but only the amount of 300,000 is been granted by WBIF for PFS preparation. |
WBIF/Technical Assistance for the preparation of Pre - feasibility Study. (The Ministry of Economic Development has support the Ministry of Infrastructure and Energy in application process. |
When |
2016 |
2016 |
Applied for Grants from IPA/NIF (yes/no) |
no |
no |
Granted (yes/no) |
no |
no |
When |
|
|
What is the amount (mEUR) |
|
|
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Additional project information
International Cooperation - International Agreement(s) signed |
Albania |
Kosovo* |
When |
|
|
Signatories of the Agreement |
Comment: The Ministry of Infrastructure and Industry of Albania and the Ministry of Economic Development of Kosovo have a good cooperation related to the energy issues, and specially in the case of the supporting the process of the ALKOGAP project development. Between them don't have any International Agreement Signed. But related to the different steps that we have taken we have a good communication and support by each part. In most of the application, the Ministry of Infrastructure and Energy is the promoter, and the Ministry of Economic Development support the process and help on the application form fulfillment, and in the case that is necessary, it prepare and send the support letter for documentation purpose. |
Comment: The Ministry of Infrastructure and Industry of Albania and the Ministry of Economic Development of Kosovo have a good cooperation related to the energy issues, and specially in the case of the supporting the process of the ALKOGAP project development. Between them don't have any International Agreement Signed. But related to the different steps that we have taken we have a good communication and support by each part. In most of the application, the Ministry of Infrastructure and Energy is the promoter, and the Ministry of Economic Development support the process and help on the application form fulfillment, and in the case that is necessary, it prepare and send the support letter for documentation purpose.
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Short description |
|
|
Foreseen Regulatory Regime - Third Party Access |
Albania |
Kosovo* |
Regulated Third Party Access |
This type is foreseen to be applicable. |
This type is foreseen to be applicable. |
Negotiated Third Party Access |
n/a |
n/a |
Exempted from Third Party Access capacity and duration (% of total and MW) |
n/a |
n/a |
Foreseen Tariff Regime |
|
|
Barriers to Project Implementation |
Albania |
Kosovo* |
Regulatory Framework |
no |
no |
Permit Granting |
no |
no |
Financing |
no |
no |
Political |
no |
no |
Market |
no |
no |
Other |
As a new project we don't see any barrier. We can mentioned as a barrier, the respect of time schedule deadline. |
As a new project we don't see any barrier. We can mentioned as a barrier, the respect of time schedule deadline. |
Which incentives would support the realization of the project |
Strong cooperation between the Ministry of Infrastructure and Energy of Albania and the Ministry of Economic Development of Kosovo; Good support from the Energy Community; Support from International Financial Institutions. |
Strong cooperation between the Ministry of Infrastructure and Energy of Albania and the Ministry of Economic Development of Kosovo; Good support from the Energy Community; Support from International Financial Institutions. |
Final remarks, other |
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