Another European country to start buying Azerbaijani gas for own needs

Albania is scheduled to start utilizing Azerbaijan’s gas for its own needs in 2026, with plans underway to develop the distribution infrastructure necessary for this purpose, Report informs referring to S&P Global Ratings.

“In addition, existing infrastructure, such as the Trans-Adriatic Pipeline (TAP), aims to diversify Albania’s energy sources and reduce its reliance on hydropower. The primary role of TAP in Albania is to facilitate the transit of gas from Azerbaijan to European markets, including Italy,” S&P noted.

Annual supplies of Azerbaijani gas to Albania are expected in the amount of about 200 million cubic meters. This will therefore coincide with the period of the first stage of the expansion of the Trans Adriatic Pipeline to an additional 1.2 billion cubic meters, of which 1 billion cubic meters are destined for Italy.

Thus, Albania will be the ninth buyer of natural gas from Azerbaijan after Italy, Greece, Bulgaria, Romania, Georgia, Türkiye, Hungary and Serbia. At the same time, there is another group of countries that want to buy gas from Azerbaijan. These are Bosnia and Herzegovina, Montenegro, Croatia, Slovakia and North Macedonia.

Azerbaijan has increased natural gas exports to Europe from 8 billion cubic meters in 2021 to 11.8 billion cubic meters in 2023. Overall, the country exported 23.8 billion cubic meters of gas last year.

According to the memorandum with the EU, Baku must increase natural gas supplies to Europe to 20 billion cubic meters by 2027.

Supplies of Azerbaijani gas to Europe via the Trans Adriatic Pipeline from the Shah Deniz gas condensate field began at the end of 2020. Currently, the pipeline’s throughput capacity is 12 billion cubic meters of gas per year.

The total length of the TAP is 878 km, of which 550 km pass through the northern part of Greece, 215 km through the territory of Albania, 105 km along the bottom of the Adriatic Sea and 8 km through the territory of Italy.

Azerbaijan’s proven natural gas reserves amount to 2.6 trillion cubic meters. The country has several more promising gas fields, in particular, Babak, Absheron, Umid and Karabakh.