AlbaniaAzerbaijani Gas Pipeline Expansion
TAP's new facility to reduce Albania's hydropower dependence, set to be completed by 2027
Global Newsflix 2 min read
Albania's reliance on hydropower is set to decrease with the construction of a new facility, Fier South, near the existing ACS03 compressor station.
The facility, scheduled for completion by the fourth quarter of 2027, will serve as a new exit point for the Trans-Adriatic Pipeline, allowing Azerbaijan's gas to be used in Albania.
Currently, almost 100 percent of Albania's electricity is produced using hydropower, making the energy system extremely vulnerable to dry years and financial crises.
The new facility will enable Albania to access gas, which has not been available due to the lack of infrastructure to turn transit gas into usable gas.
TAP AG, Albania's Ministry of Infrastructure and Energy, and state transmission operator Albgaz signed a cooperation agreement in July 2021, establishing the principle that infrastructure built around an entry-exit point near Fier would eventually transfer to Albanian state ownership.
The project is part of TAP's broader approach to Albanian integration, which involves building capacity in discrete, bankable stages and handing off completed assets to the Albanian government.
Starting from January 1, 2026, 1.04 billion cubic meters per year of extra long-term capacity will become available in the Kipoi-Italy segment of the pipeline.
Key facts
- The Fier South facility is set to be completed by the fourth quarter of 2027
- The facility will serve as a new exit point for the Trans-Adriatic Pipeline
- Almost 100 percent of Albania's electricity is produced using hydropower
- The new facility will enable Albania to access gas
Three perspectives
Neutral
The construction of the Fier South facility is a significant development for Albania's energy sector. The project's progress will be closely watched by officials and energy experts. The impact of the facility on Albania's energy dependence will be assessed in the coming years.
Positive
The Fier South facility is expected to reduce Albania's reliance on hydropower and provide a more stable energy source. This development is seen as a positive step towards diversifying Albania's energy mix and reducing its vulnerability to dry years.
Negative
The project's slow pace has been criticized, with some arguing that it should have been completed sooner. The lack of access to gas has been a significant issue for Albania, and the delay in completing the facility has exacerbated the problem.
Your week in news, every Wednesday
The biggest stories of the week for your edition, in your inbox every Wednesday morning, your time. Free, and you can unsubscribe at any time.
