Balkan Investment Framework: Two 93 million euro natural gas projects qualify

2025-09-04 07:57:00, Ekonomi CNA

The Western Balkans Investment Framework (WBIF) has qualified two projects in the gas sector for financing from donors and international development banks.

These are the projects "Underground storage of natural gas in Dumre" with a cost of 75.3 million euros and the Fier-Vlora Gas Transmission Line with a cost of 17.4 million euros.

The projects are intended to be developed over the next 4 years with the aim of being completed around 2030 and are currently in the preparation phase.

Albania, Kosovo and Montenegro are the only countries in Europe that are not connected to interstate gas transmission systems. The gas sector in Albania has been in constant decline. Domestic gas production has fallen from 1 billion cubic meters in 1982 to just 0.01 billion cubic meters in recent years. Most of the existing gas pipelines are old and in poor condition, necessitating a completely new gas transmission and distribution system.

With the exception of the renovated pipeline from the Delvinë gas field to the Ballsh refinery, the gas infrastructure is non-functional and would require rehabilitation before being put into operation.

According to official information from the Western Balkans Investment Framework, the objective of underground natural gas storage in Dumre will contribute to the long-term development of Albania's gas system, improving the country's gas supply, through the construction and operation of underground storage.

These investments will complement the supply of gas originating from the Middle East and the Caspian Region via the Trans Adriatic Pipeline (TAP). The electricity sector in Albania would benefit from the addition of off-peak generation capacity and would complement hydropower production during periods of unfavorable hydrological conditions.

The gas deposit in Dumre enables the construction and operation of gas-fired HPPs. If this is achieved in time starting from 2030, electricity imports are no longer necessary and Albania will have excess capacity for electricity exports.

But the main issue is whether there will be sufficient investment in infrastructure to bring gas to market and the economic viability of such investments. The first transmission project qualified by donors is Fier-Vlora with around 17.4 million euros.

The gas that will flow through TAP and then an Albanian network and fill the storage capacity could come from the Caspian basin. The project specifically includes the construction of a natural gas pipeline of about 40 km, which will connect the Vlora TEC with TAP. In addition, the Vlora TEC will be converted to use natural gas as a fuel for electricity production instead of oil./ MONITOR