Enio Jaço
As elsewhere in Europe, the price of gas has spiked recently for Albania’s businesses. Two major reasons have caused a ‘perfect storm’. The COVID pandemic has disrupted the supply and demand flows, while Russia has been shortening exports to Europe, keeping the supplies at a minimum.
Europe and US are intensifying efforts to Diversify Europe’s energy supply sources. Three developments are interesting, two of which are related to Albania. The European Commission is starting talks with Qatar today, aiming to tap into the Gulf nation’s vast LNG supply (unrelated to Albania). EU is also discussing with Azerbaijan ways to boost gas supplies through the Trans Adriatic Pipeline (TAP), which passes through Albania. Third, which started before the crisis, ExonMobil and Excelerate have signed a Memorandum of Understanding and currently running a feasibility study, to determine whether to open an LNG terminal in Vlore. If it goes forward, it would create a significant, additional gas supply source for the Western Balkans and Europe, further diversifying Europe’s energy sources.
A potential Albanian contract with ExonMobil, one of the largest natural gas producers in the world, would be a significant direct foreign Investment to Albania and turn the country into a potential LNG hub supplier in the Western Balkans. Interesting developments, let’s see how things turn out!
