Gas infrastructure companies Snam (Italy-based) and Albgaz (of Albania) have created a joint venture to operate and maintain the Albanian section of the Trans Adriatic Pipeline (TAP), Albgaz said Tuesday.  

The JV, which will be 75% owned by Albgaz and 25% by Snam, was signed in Tirana, Albania, on Monday. The signing follows the conclusion of an international tender called by Albgaz to select a qualified partner to support the company, Kallanish Energy learns.

Snam said in a statement the agreement is one of several activities launched by the Snam Global Solutions business unit, aimed at leveraging the company’s “l(fā)ong-established experience in market development and the construction and management of gas infrastructure in Italy and Europe, as well as making it available to other operators at a global level.”

Albania Infrastructure and Energy minister Damian Gjiknuri said the deal resulted from a “very intensive negotiation” after the bidding attracted “very high interest” from European companies. He added the maintenance of TAP was only given to Albania thanks to the government insistence and the “good-will” of the consortium, in which Snam is part of.  

The new company will initially employ 45-60 people with recruiting starting next year, ahead of the  pipeline commissioning in 2020. The initial volume of services for the JV is expected at €4-6 ($4.7-7) million per year, and later increasing to €10 ($11.8) million, Albgaz director Arber Avrami said.

The JV, whose name wasn’t disclosed, will also maintain Albgaz’s domestic infrastructure, said to be needing “massive rehabilitation work.”

The TAP pipeline will transport Caspian gas to Europe. It will connect with the TANAP pipeline at the Greek-Turkish border, and cross northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy. Together, these pipelines and the South Caucasus Pipeline (SCPX) form the 3,500-km (2,174-mile) Southern Gas Corridor (SGC) project.

TAP’s design offers various connection options to a number of existing and proposed pipelines along its route. This would enable the possible delivery of Caspian gas to Italy, Austria and Central Europe, Germany and France via Switzerland, Bulgaria; and South East Europe.


Source: Kallanish Energy