BAKU, Azerbaijan, January 20. The launch of
natural gas supplies from Azerbaijan to Albania via the Trans
Adriatic Pipeline (TAP) has marked an important milestone for
Albania’s energy sector, a country that until now had virtually no
access to pipeline gas and relied heavily on hydropower.
Initial deliveries of around 0.16 billion cubic meters per year
are not yet having a significant impact on Albania’s overall energy
balance, but they are seen as strategically important. The supplies
lay the groundwork for the development of domestic gas
infrastructure and help reduce the vulnerability of the energy
system to climate and seasonal factors, including fluctuations in
river water levels.
Albania traditionally generates most of its electricity from
hydropower plants, making its energy system highly sensitive to
droughts. In recent years, such risks have repeatedly led to
increased electricity imports and higher prices. Access to natural
gas is viewed by Albanian authorities as a way to diversify the
energy mix and improve system resilience.
One of the first practical steps in this direction has been the
gasification project in the Albanian city of Korca, implemented
with the participation of the State Oil Company of Azerbaijan
(SOCAR). The project involves the creation of a distribution
network to supply social facilities, including schools and medical
institutions, as well as residential areas. In the long term, it is
expected to support regional economic development and reduce
dependence on more expensive and less environmentally friendly
fuels.
The significance of Azerbaijani gas, however, goes beyond
bilateral relations. TAP is part of the Southern Gas Corridor, an
infrastructure route designed to deliver Caspian gas to Southeast
Europe. As the European Union (EU) seeks to reduce dependence on a
limited number of suppliers, this route is gaining additional
geopolitical and economic importance.
SOCAR is already using various gas supply models in the region,
including so-called virtual gasification, which is applied in North
Macedonia and Bulgaria. These models make it possible to supply gas
to industrial and municipal consumers even in the absence of a
developed national gas transmission network, although scaling them
up requires further investment and regulatory support.
For Albania, the next major challenge will be developing
domestic infrastructure, including the construction of distribution
networks and potential underground gas storage facilities. Without
these elements, increasing import volumes and connecting new cities
and industrial zones will remain limited. Funding these initiatives
continues to be a significant challenge, especially considering
budget limitations and the push for a greener future.
At the regional level, expanded gas supplies contribute to the
development of cross-border interconnections and could support
economic integration in the Western Balkans. Analysts note,
however, that the long-term role of natural gas will depend on the
pace of decarbonization and EU climate policy, creating uncertainty
for new infrastructure projects.
Albania’s interest in renewable energy initiatives and regional
integration, including electricity transmission projects such as
the Black Sea energy cable, reflects the country’s intention not to
rely on a single energy source. In this context, cooperation with
Azerbaijan is seen as part of a broader diversification strategy
rather than a replacement for other directions.
Overall, Azerbaijani gas is emerging for Albania and neighboring
countries not as a solution to all energy challenges, but as a tool
for reducing risks and increasing the flexibility of energy
systems. Its long-term role will depend on how successfully the
region balances the development of gas infrastructure with energy
transition goals and integration into the broader European
market.
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