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TAP receives Compound Development Permit in Albania

08 aprile 2014

Compound Development Permit – Phase 1 for the TAP project approved by the Albanian National Territory Council (KKT)

Tirana, Albania. The Compound Development Permit – Phase 1 for the Trans Adriatic Project (TAP) is approved by the Albanian National Territorial Council (KKT), chaired by Prime Minister, Edi Rama.

The Compound Development Permit - Phase 1 (CDC- Phase 1) is one of the most important permits granted to TAP AG by the Albanian authorities. It represents the permit which will authorise TAP AG to start its construction activities in Albania.

The CDP Phase 1 is approved by the National Territorial Council (KKT), the highest authority in the country for territorial planning, and follows the provisions of the Law on Territorial Planning, and the decision of the KKT for the approval of the National Sectorial Plan for TAP project on July 4, 2013.

This permit for the entire TAP pipeline system shall be followed by a second phase, during which the Compound Development Permit by the Ministry of Energy and Industry will be issued on an incremental basis for different sections and phases of the TAP pipeline system development in Albania.

The construction activities will start with the upgrade and construction of access roads and bridges in Albania in 2015 and this will be followed by the pipeline laying and construction of other facilities associated with this gas transportation infrastructure.

Shkelqim Bozgo, Country Manager of TAP Albania, said: “We are honoured to receive today the approval of the highest Albanian authority on territorial planning, the National Territorial Council. This permit clears the way for the start of the construction activity for TAP in Albania. Today’s meeting represents another major milestone in the excellent cooperation between the Albanian government and the TAP project and we look forward to working jointly in the future to make TAP a success.”

TAP will be one of the largest foreign investments in Albania with a cost of construction of around 1 billion Euros. During construction of the pipeline, TAP will bring employment to the country - in construction, transport and communications, manufacturing and utilities, trade, financial and business services, as well as it will contribute to the development of key infrastructure in the country such as roads. TAP will also support Albania in developing its domestic gas market and connections to regional gas networks.

About the Trans Adriatic Pipeline (TAP)

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy. 
TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.

TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on grants or subsidies. With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately a year later.
TAP’s shareholding is comprised of BP (20%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).

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