SOCAR signs agreement with Albgaz to implement first gas infrastructure development project in Albania
BAKU. Feb 11 (Interfax) - The State Oil Company of the Azerbaijani Republic (SOCAR) has opened an office in Albania, Albania's Albgaz said.
"The opening ceremony for SOCAR's Albania office took place on February 10, attended by the ambassador of Azerbaijan to Albania, Anar Huseynov, a representative of the Albanian Infrastructure and Energy Ministry, and Albgaz Sh.a. General Director Skerdi Drenova," it said.
General Director SOCAR Albania Murad Heydarov said SOCAR's representation is important for Albania's infrastructure development, which will begin with a pilot project, Albgaz said. This project involves developing gas infrastructure for the city of Korce in cooperation with Albgaz.
An agreement on cooperation between SOCAR Albania and Albgaz was signed to initiate the project for Korce's gas infrastructure development.
As reported, SOCAR signed a memorandum of understanding with the Albanian Infrastructure and Energy Ministry and Albgaz on the sidelines of COP29 in Baku in November 2024. The memorandum aims to develop gas infrastructure in Korce.
The feasibility study for the project has already been completed. The city's gas infrastructure development is scheduled to begin in 2025 and be completed by 2027, with investment estimated at approximately 21 million euros.
The project aims to supply gas to both households and businesses in Korce. Initially, the focus will be on establishing a gas distribution network throughout the city, with particular emphasis on serving local enterprises. The distribution system will be connected to the exit point of the Trans Adriatic Pipeline, which delivers natural gas from Azerbaijan to Europe via Albania.
Korce was chosen as the pilot project for Albania's national gas infrastructure development strategy, supported by SOCAR, because the city's residents have proven to be responsible in paying for utilities, with no outstanding debts to water, sewage, or electricity companies.
In the future, the project will be expanded to the cities of Pogradec and Erseke. Overall, Albanian authorities aim to complete development of the country's gas infrastructure by 2030.