Albania inks deal to renegotiate terms on TAP pipeline project

The Albanian authorities on Wednesday signed an agreement with representatives of the Trans Adriatic Pipeline (TAP) AG in order to renegotiate the agreement on the natural gas TAP project, the Albanian ministry of energy said in a press release.

According to the ministry, the reason why the Albanian authorities requested the renegotiation was to guarantee Albania has similar benefits as those enjoyed by the other countries involved in the TAP project, namely Greece and Italy.

Albanian Energy and Industry Minister Damian Gjiknuri and Ian Bradshaw, managing director at Trans Adriatic Pipeline AG, signed the revised agreement on Albania's benefits from the project, with the commitment to the development of the gas market and provision of maintenance services for TAP pipeline system in the Albanian territory, the press release said.

As the ministry explained, the agreement will bring numerous direct benefits to Albania, and it will be subject to legal procedures and then be approved by the government and the parliament here.

The review of the fiscal stability period grants Albania the right to receive higher profit tax, which during the operational lifetime of the project is estimated to create positive effect of around 60 million euros (63 million U.S. dollars), the ministry said.

Albania also benefits from doubled funds for training in the natural gas sector from 350,000 to 700,000 euros.

TAP is seen as a project that will play a major role in developing Albania's energy market and facilitating the governments objective of becoming a gas hub in the Western Balkan region. (1 euro = 1.04 U.S. dollars) Endit