Alternative to Russian gas supplies to Balkans to be discussed in Tirana

On April 27, the prospects for the development of gas supply to the Western Balkans will be discussed in the Albanian capital Tirana against the backdrop of a possible reduction in gas purchases from Russia due to hostilities in Ukraine.

Report informs that the meeting will be attended by delegations from the Western Balkans and representatives of gas supplying nations (except for Russia).

A delegation from the United States is also expected, as many of the countries in the region are set to purchase American liquefied natural gas (LNG) and plan to build the corresponding infrastructure.

One of the topics of discussion will be, among others, the situation with the construction of the IGB (Greece-Bulgaria) interconnector, scheduled to be put into operation before September 2022, the Azerbaijani government said, which will also take part in the discussions.

The parties also intend to reaffirm their commitment to the IAP (Ionic Adriatic Pipeline), BRUA (Bulgaria, Romania, Hungary, Austria, listed by the EU in the "Projects of Common Interest" (PCI) list), and other gas pipelines in the Western Balkans.

“The Western Balkans region is considered a priority market for gas from Azerbaijan, the production of which will be increased. The EU wants to help the states of this region get rid of coal through assistance in organizing the supply of Azerbaijani gas as part of the EU Green Deal strategy, Report learned from the government.

The states of the Western Balkans will individually determine their demand for gas from Azerbaijan and will present their updated estimates during 2022.

“When there is an understanding regarding the volumes of gas they need, we can start commercial negotiations and at the same time study the technical and commercial scenarios for the supply of our gas to the Western Balkans,” SOCAR sources said.

At the same time, it is obvious that Azerbaijan will not have exclusive rights to fully supply the countries of the Western Balkans with gas, but will be one of the sources.

For example, Albania, through whose territory the SGC (its European segment - Trans Adriatic Pipeline) passes, plans to buy Azerbaijani gas after 2023 and simultaneously purchase LNG from the United States.

North Macedonia is interested in an LNG terminal in Alexandroupolis, Greece (capacity of 5.5 billion cubic meters per year, may start operation in 2023).

Montenegro is also considering the construction of an LNG terminal, the Krk LNG terminal is successfully operating in Croatia and its expansion is planned.

Slovakia is exploring the possibility of importing LNG from the US and Qatar.

Romania has its own oil and gas production, covering 70% of consumption, but is also waiting for gas from Azerbaijan.

Bulgaria is waiting for an increase in volumes from Baku, as well as LNG.

During the February talks of EU commissioners in Baku, the importance of expanding the Trans Adriatic Pipeline (TAP) was noted specifically for gas supply to the Western Balkans.

TAP has been operating since December 2020, supplying gas from the Caspian Shah Deniz field to Greece, Italy, and Bulgaria.