Presentation: The role of Southern Gas Corridor

for energy security of Europe

Ilkin Aslanov, Executive Assistant to SOCAR
President Advisor, SOCAR, Azerbaijan

State Oil Company of the

Republic of Azerbaijan
18 March, Tirana

MR. Ilkin Aslanov

Executive Assistant to SOCAR President
Advisor, SOCAR

The Role of Southern Gas

Corridor for Energy Security of
Europe
Gas Sales

 Proven total hydrocarbon reserves -- 4,6 billion tons

Forecasted total hydrocarbon reserves -- 10 billion tons
Prospective onshore and offshore structures 40

Azerbaijans Gas
Strategy:
Views and Perspectives

Secure energy stability and sustainability

Strategic cooperation with leading energy

companies

New infrastructure development and

upgrade, modernization and efficient use of
existing infrastructure

Optimization of management

Oil/Gas revenues management

Expansion of SOCARs investment portfolio

and geography of operations

Diversification of consumer markets and

export transportation routes

Contribution to the development of

Southern Energy Corridor

Azerbaijans Gas Production

30 bcm
x6

5 bcm
2004

2014

Shah Deniz Field

1,2 trillion cubic meters gas
240 million tons condensate
Annual production from Stage 2
will start by the beginning of
2018 and reach more than 16
bcm at plateau

Azerbaijan Gas Exports

*Main natural gas volumes come from Shahdeniz and
ACG fields
Gas from Shah Deniz field has been exported via the
SCP gas pipeline since 2006 (Azerbaijan and Georgia) and
now reaches 1.9 bcm per annum
Signed agreement to supply Turkey with 89.2 bcm of
gas from Shahdeniz over a 15-year period starting 2007
(Shahdeniz stage 1 volume)
To satisfy the gas demand of Nakhchivan AR, SOCAR
swaps 0.4 bcm natural gas with National Iranian Gas
Export Company
In 2014, 0.2 bcm of natural gas was exported to Russia

Shahdeniz Stage 2
Gas Sales
Total 16bcma Stage 2 future sales volumes were
negotiated and agreed;
BOTAS GSA was signed in 2011 for 6bcma.
For remaining 10bcma GSAs were signed with 9
European buyers in September 19, 2013; Axpo Trading
AG, Bulgargaz EAD, DEPA Public Gas Corporation of
Greece S.A., Enel Trade SpA, E.ON Global Commodities
SE, Gas Natural Aprovisionamientos SDG SA, GDF SUEZ
S.A., Hera Trading srl and Shell Energy Europe Limited

Prospective Fields and Structures

Absheron

Total/GdF PSA
340 bcm gas
45 mln tons of condensate

Nakhchivan

HoA RWE

Shafag-Asiman

BP PSA

ACG Deep

ACG Consortium

Umid

SOCAR
200 bcm gas
40 mln tons condensate

Babek

400 bcm gas

80 mln tons condensate

Gas Export Potential

Southern Gas Corridor

Projects
The EU initiative is to enhance energy security by connecting
to new natural gas sources in the Caspian basin
One gas field development, one pipeline expansion and two
new pipeline construction, one of which is TANAP
Projects will be able to supply 7 million households in South
Eastern and Western Europe with natural gas
Shah
Deniz Full
Field
developme
nt (SD2)

South
Caucasus
Pipeline
expansion
(SCPx)

Trans
Anatolian
Pipeline
(TANAP)

Trans
Adriatic
Pipeline
(TAP)

Diversity and security of energy

supply for Europe
Proposed Southern Gas Corridor Pipelines

Shah Deniz
SCP
TANAP
TAP

Trans Adriatic
Pipeline (TAP)

Trans Anatolian
Pipeline
(TANAP)

Expansion of
Southern
Caucasus Pipeline
System (SCPx)

Shah Deniz 2
project
(Upstream)

Southern Gas Corridor Key

Information about Project Costs

South Caucasus Pipeline(SCP)

The 692km South Caucasus Pipeline has been designed
to transport gas from the Shah Deniz field in the
Azerbaijan sector of the Caspian Sea, through Georgia
and on to the Georgia-Turkey border. The SCP Project
was sanctioned on 27 February 2003.

The physical construction of SCP pipeline commenced

in 2004 and the pipeline was ready for commercial
operation in September 2006. This is a 42-inch
diameter pipeline. The SCP pipeline is capable of
carrying up to 7,4 billion cubic meters of gas annually.

South Caucasus Pipeline

Expansion (SPCX)
The expansion of the South Caucasus Pipeline is part of the
Shah Deniz Full Field Development project. The
construction has started in 2014 and is planned to be
completed by 4Q 2018.
SCPX is one of the major projects within the Shah Deniz
(SD) Stage 2 (SD2) Program. SCPX is also a component of
the Southern Gas Corridor, which will allow for the
transportation of gas from Azerbaijan, through Turkey and
into Europe.

Project Details
SCPX will expand the existing SCP system with a new
48-inch pipeline loop with the capacity to export an
additional 16bcma of gas sales to the Georgia-Turkey
border. This is to be accomplished by building a
new pipeline loop in parallel with the existing SCP. In
Georgia two new intermediate compressor stations
will be constructed.

Shareholders of SCP/SCPX

SOCAR/AzSCP 10%

SGCM 6,67%

BP 28,83%

TPAO 19%

PETRONAS 15,5%

LUKOIL 10%

NICO 10%

Present status of TANAP and its

potential role in the
European gas transit route

Azerbaijan EU Joint
Declaration

Signed in January 2011 during the

visit of President Barroso to
Azerbaijan
Framework document
Strategic principles for the supply
of Azerbaijan and Caspian gas to
Europe

Gas Arrangements with Turkey

October 25, 2011

Landmark gas sales and

transportation between Azerbaijan
and Turkey
IGA on gas sales to Turkey

June 26, 2012

October 15, 2012

TANAP Shareholders Agreement
signed by SOCAR, BOTAS and
TPAO

January 2013
TANAP IGA and HGA ratified by
Azerbaijan and Turkey Parliaments

*March 2015
*Groundbreaking ceremony of TANAP

TANAP IGA and HGA

Growing demand for gas

Europe Dependance on gas

imports

Energy security
Europe needs reliable suppliers
Azerbaijan has proved to be a trusted partner;
SGC appears prominently in the European Commission's
latest Energy Security Strategy report
TANAP constitutes an integral part of the Southern Gas
Corridor
TANAP section of SGC will bring gas from a massive
field off the coast of Azerbaijan called Shah Deniz 2 into
the heart of Europe

Project Details

Shareholders:
SOCAR (Azerbaijan) - 58% (operator), BOTA (Turkey) 30%, BP (UK) 12%

Project cost: $11.8 billion USD

Total pipeline length and width:
Georgia-Turkey 1,333km 56;
Turkey-Greece 477 km 48;

Total length: 1,810

Connecting directly to TAP on the Turkish-Greek border

Project Details
Initial capacity: 16 bcm/a:
6 bcm to Turkey
10 bcm to Europe;

Potential capacity: 31 bcm/a by 2026.

Buyers: contracts with 9 European countries have already
Axpo (Switzerland)
been signed
Supply Contracts Signed
Hera (Italy)
Enel (Italy)
E.ON
Gas Natural (Germany)

10 bcm/a

GDF (Spain)
Shell (England/Netherlands)
Bulgargaz (Bulgaria)
DEPA (Greece)

Project Status
A Memorandum of Understanding has been signed between
Azerbaijan and Turkey
Gas Transportation Agreement has been signed between
BOTA and TANAP to transport the gas along Turkey
territories
The use of funds allocated for TANAP project has already
been started
Note: the project is 100% equity-financed

Project Status
A significant five year contract for the supply of
Engineering, Procurement and Construction Management
(EPCM) is awarded to WorleyParsons on May, 2014
EIA Positive Decision was taken from the competent
authority Turkish Ministry of the Environment &
Urbanization (MoEU) to be effective as of 24th of July,
2014
Land Acquisition process is ongoing

Project Potential
A second wave of gas from Azerbaijan can be anticipated
with several additional gas opportunities in Azerbaijan
including Shah Deniz Deep, Shafag-Asiman and ACG
Deep that are being evaluated by BP and its co-venturers.
With continued progress these projects can follow on after
Shah Deniz, and therefore provide additional gas to
Europe
Absheron field could be exporting gas in the early 2020s.
The Middle East and East Mediterranean have the
potential to supply the Southern Corridor through the
Trans-Anatolian Pipeline in the future.

The role of TAP in the energy

security of the Balkans

Baku 2014

What is TAP?
Tap is an integral part of the Southern Gas Corridor.
Trans Adriatic Pipeline (TAP) is a pipeline project to
transport natural gas from the Caspian sea (Azerbaijan) to
the European buyers.

TAP's Key Features

Start of operation: 2019
Length 867km (Greece - 547km,
Albania - 211km, Adriatic Sea 104km and Italy - 5km)

TANAP
TAP

Diameter: 48 inch (subsea 36

inch)
Project cost: $5 billion USD
Initial throughput capacity: 10
bcma (expandable to 20 bcma)

The shareholders are: BP (UK) (20%), SOCAR (20%), Statoil (Norway)

(20%), Fluxys (Belgium) (19%), Enagas (Spain) (16%) and Axpo
(Switzerland) (5%)

TAP's Key Features (2)

Aligned with EUs energy policy objectives

Designed to expand from 10 to 20 bcm (plus) per year

Up to 80% of physical reverse flow and potential gas storage
Connecting directly to TANAP on the Turkish-Greek border
Interconnection with various existing and proposed pipelines providing energy security in South
Eastern Europe
Providing Bulgaria with a new source of gas through IGB or Kula-Sidirokastro Interconnector
Although TAP will be initially designed to transport available volumes of Shah Deniz gas to Europe, TAP
is scalable.

TAP is a PCI and PECI

TAP has been designated as a Project of Common Interest (PCI) and Europes
Energy Community has named it a Project of Energy Community Interest (PECI).
TAP is just the beginning for the opening of the Caspian basin producing
countries into the EU, which would constitute a great step ahead in terms of
diversification and gas security supply.
TAP continues to develop the framework that will enable increased security of
supply and diversification of gas resources in the SEE region.

Securing Supply for SEE region

TAP will contribute to Market Integration and Diversification of Gas Supply to
South Eastern Europe
Physical reverse flow:
up to 80 % of capacity
Secures supply in
emergency situations
and flexibility: connects
SEE to North African and
other gas resources (i.e.
LNG in Greece and
Turkey)
Cross-border
interconnector between
the Italian and South
East Europe
Market development and
IAP: Ionic Adriatic Pipeline
integration through
IGB: Interconnector Greece-Bulgaria
WBR: Western Balkan Ring
other planned pipelines
(IAP, WBR, IGB)

Securing Supply for SEE region (2)

TAP reverse flow significantly contributes to security of supply in
SEE region

Poland
German
y

Czech
Republic
Austria

Switzerlan
d
Ital
y

Slowakia
Hungary

Sloveni
Rumania
Croatia
a
Bosnia- Serbia
Herzegovin
a
Monteneg
Bulgaria
ro
FYROM
Turkey
Albani
a
Greece

E.ON Ruhrgas
emergency supplies
during the Ukraine Gas
Crisis 2009
Potential additional
emergency supplies
via Reverse Flow on
TAP

Natural Gas Reserves (figures in tcm)

Source: BP World Energy Statistical Review

Connecting Europe to new gas

reserves (figures in tcm)

TAP will be connected to European

Network
The EC is already prioritizing support for interconnecting
pipelines to assist in the development of the gas networks in
Southern and South Eastern Europe.
Vienn
a

Connection to Bulgaria

Austri
a
Sloveni
a

Ljubljana

Connection to
Ionian Adriatic Pipeline

Budapes
t

Hungar
y
Romani
a

Zagre
b

Croati
a
BosniaHerzegovi
na

Belgrad
e
Buchare
st

Sarajevo

Ital
y

Ploc
e
Rome

Serbi
a

Monteneg
ro Podgoric
Skopje
a
Tirana

Bulgari
a

FYROM

Fier
Brindisi

Sofi
a

Albani
a
Greece

Komotin
Thessalonik i
i

LN
G

Turke
y

Connection to Ionian Adriatic

Pipeline

TAP has entered into multiple Memorandum of Understanding and Cooperation (MoUC) with the
Ionian Adriatic Pipeline (IAP) which can be connected to TAP, so that such countries as Albania, Croatia,
Bosnia and Herzegovina, Montenegro, Slovenia, can all benefit from Shah Deniz gas.

Bilateral Agreements on IAP with TAP:

Plinacro (Croatia) Feb 2011
BH-Gas (Bosnia-Herzegovina) April 2011
MoE Montenegro May 2011
METE Albania July 2011
Plinovodi (Slovenia) Sept 2011
Cooperation goals:
Align project schedules
Understand technical requirements
Identify and manage technical interfaces
Exchange views on best practice
Enhance regional visibility
Gain political support within the host
governments, the EU and the region
Seven TAP-IAP Joint Working Group
meetings have been held to date
IAP throughput scenarios:
1 bcm to Albania
0.5 bcm to Montenegro
1 bcm to Bosnia and Herzegovina
2.5 bcm to Northern Croatia or 0.2 bcm to
Southern Croatia

Cooperation in the development

of Gas Master Plan of Albania

Background of mutual relations in the energy sector.

Memorandum of Understanding between the Republic of Azerbaijan,
Bosnia and Herzegovina, the Republic of Croatia and Montenegro
relating to support for and cooperation in the realization of the Trans
Adriatic Pipeline Project and the Ionian Adriatic pipeline Project
signed in May 2013 in Tirana
The Memorandum of Understanding between the Republic of
Azerbaijan, the Republic of Albania, Bosnia and Herzegovina, the
Republic of Croatia and Montenegro relating to cooperation in
implementing the Southern gas Corridor in the South East Europe
signed in December 2013 in Baku
The Intergovernmental Memorandum of Understanding between the
Republic of Azerbaijan and Albania relating to cooperation in the
development of the Gas Master Plan of Albania

What does this Memorandum of Understanding envisages?

Emphasizing the importance of TANAP, TAP and IAP projects which are of
strategic interest for the region of the South East Europe and the European
Union;
Encouraging development of new cross-boarder transportation networks for
natural gas as well as development of national gas transportation
infrastructure in Albania to enable the gas from Azerbaijan and the Caspian
to reach new markets in the South East Europe, including Albania.
Intending to use the extensive experience of the Republic of Azerbaijan in
the field of energy in order to provide further assistance by SOCAR of
Azerbaijan and the other national public and private entities of Albania to
develop Gas master Plan of Albania which would contribute to further
enhancement of the energy security of Albania and promote prosperity and
economic stability of the country.

Roadmap of actions

SOCAR in coordination with the Government of the Republic of

Albania, European Commission and Trans-Adriatic pipeline AG
jointly with other interested stakeholders will manage to fund the
feasibility study of GMPA
The feasibility study shall among other objectives explore
potential options of the GMPA, identify technical and commercial
preconditions for the development of domestic gas master plan,
including a detailed roadmap to the downstream infrastructure,
natural gas transportation and distribution networks and the
associated infrastructure including but not limited to gas storage,
LNG terminals and power generating facilities in Albania.

Thank you for your attention

Presentation: Environmental services for the oil

and gas industry
Giannis Karakolis, North Greece Director, POLYECO S.A.
Simon Geragthy, Drilling Waste Management Expert,
POLYECO S.A.

Environmental services for Oil & Gas

Industry
Tirana, 18th of March

THE GROUP
The
group
was
founded
by
Ioannis
Polychronopoulos
in
1977
with
the
establishment of EPE S.A. the first company in
Greece offering Industrial & Marine Pollution
Control Services.
Today,
after
35
years
of
continuous
development, the Group has incorporated
numerous companies, having activities in
several countries worldwide.

Polyeco was founded in 2001 and is the only

fully
licensed
waste
management
and
valorization industry in Greece.

Managed >300.000 tn of HW
Recovery of >200.000 tn HW
Accredited Laboratory
Main facilities in Attica 35.000 m3
Storage facilities in Thessaloniki

POLYECO Affiliates
Polyeco is already actively present to the Balkans area
In Albania, is the only licensed transporter and exporter of
Hazardous waste
Polyeco is active too in Serbia, Kossovo, and FYROM
POLYECO ALBANIA SH.P.K.
POLYECO D.O.O. - SERBIA
POLYECO BALKANS D.O.OEL. FYROM
POLYECO GULF LLC (FOUNDED IN 2015 IN MUSCAT)

We take care of the environment on your behalf

OUR PHILOSOPHY

Quality

Innovation

POLYECO IS COMMITED TO:

Quality Management System certified as per EN ISO 9001:2008.
Environmental Management System verified according to EMAS III (European
Regulation 1221/2009).
Occupational Health and Safety Management System certified as per BS OHSAS
18001:2007.
Quality Control Laboratory accredited under the terms of ELOT EN ISO/IEC 17025:2005.
Security Management System for the supply chain certified as per BS EN ISO 28000.

Expertise
Use of the most advances and effective new technologies
Clear vision of future developments

Customization
We offer customized solutions according to customer needs

Social Responsibility

Respect and protection of the environment

and
local
ethics.
We take
care
of the
environment on your behalf

OVERVIEW
35 Years of continuous Research, Development and Innovation
The oldest and largest company in the field of Environmental
Protection in the South East Europe occupying:

>250 highly qualified personnel

>50 specialized scientific personnel

Member of National, European and International organizations

(EBRA, IMO, Eucopro, ISWA, Intertanko, IHPA, Euroshore)
Cooperation with International Organizations as World Bank, EBRD, UNDP,
UNPD, UNIDO, EMSA

OUR CLIENTS

MAIN SERVICES PROVIDED

Hazardous waste management (drilling cuttings)
Oil spill response services
Soil remediation services
Sludge treatment services
Special environmental studies Contingency plans
Primary wastes from seismic operations
Waste from exploratory drilling operations
Other wastes including excess drilling chemicals

Primary wastes from construction & maintenance activities

Wastes from development, production and operation
Wastes from decommissioning and reclamation

WASTE MANAGEMENT
Type of hazardous waste for
management:
Transformers, capacitors and other
equipment contaminated with PCBs
Petroleum remains, out of
specifications fuel, greases
Sludge from fuel tank cleaning
Emulsions, mixtures of oil-waste non
recyclable
Laboratory waste
Expired or out of specifications final
products and raw materials
Contaminated packaging materials
Radioactive waste
WEEE, accumulators, batteries and
fluorescent lamps

WASTE MANAGEMENT
Waste streams within the scope of
MARPOL (indicative list):
Bilge Oils
Solids from grit chambers and
oil/water separators
Sludges from oil/water separators
Mixtures of wastes from grit
chambers and oil/water separators
Desalter sludges or emulsions
Waste from transport tanks, storage
tanks and barrels cleaning

REHABILITATION AND
DECONTAMINATION SERVICES
Land remediation services:

Pump and treat

Stabilization and solidification
Land farming
In-situ and ex-situ
bioremediation
Excavation
Chemical treatment Oxidation
/ Reduction
Air sparging

REHABILITATION AND
DECONTAMINATION SERVICES
Environmental rehabilitation of industrial
sites
Asbestos management
Decontamination of transformers and
other electrical equipment contaminated
with PCBs

Tank cleaning and sludge treatment

services

REHABILITATION AND
DECONTAMINATION SERVICES
Tank cleaning and sludge treatment:
We have modern and specialized
equipment for pumping, homogenizing
and separating sludge from tanks.
We offer integrated management of the oil
sludge by means of centrifugal separation.
We own containerized mobile units of
centrifugal separation and sludge
processing.
We own special tanker trucks under ADR
specifications equipped with high vacuum
pumps collect waste.

REHABILITATION AND
DECONTAMINATION SERVICES
Oil and sludge on-site treatment:
Oil in the surface of an oil pond can be
recovered in a percentage of 90 to 99%.
Oily sludge can be recovered in a percentage
of 50 to 90% recovered as oil.
Oil can be pumped from ponds using floating
pumps (skimmers) in order to avoid the
contamination of clean oil by water or other
materials.

REHABILITATION AND
DECONTAMINATION SERVICES
Oil and sludge on-site treatment:
Sludge is pumped out of the ponds using
progressive cavity pumps or submersible pumps
The pumps are hydraulic oil driven by power
packs in order to avoid the danger of electrical
spark
If it is needed, the sludge is preheated by
portable heaters to reduce its viscosity
The sludge is transferred into an intermediate
tank equipped with mixing devices and internal
heating coils for better homogenization. If
necessary, the sludge is heated again in order to
reach the optimal temperature for decanting
(centrifugation treatment).

REHABILITATION AND
DECONTAMINATION SERVICES
Oil and sludge on-site treatment:
All pumps are hydraulic oil driven to avoid the
danger of electrical spark
Sludge may be preheated to reduce its viscosity
Sludge is transferred into an intermediate mixing
and heating tank for better homogenization.
A macerator and a feeding pump transfer the
sludge to decanter where centrifugal separation
takes place.

MANAGEMENT OF RADIOACTIVE
MATERIALS
Polyeco holds a unique experience in the management of
radioactive materials. The services include:
Management of Naturally Occurring Radioactive Material (NORM)
contaminated soil.
Management of scrap metal with increased radioactivity levels.
Management of industrial radioactive sealed sources (level / density
meters etc.).
Management of radioactive smoke detectors and lightning rods.
Management of radioactive sealed sources from analyzers (XRF
analyzers, sulphur analyzers, etc.).
Management of high activity sealed sources used for therapeutic
uses (teletherapy sources, brachytherapy sources etc.).

Oil Spill Response Services

19

Oil Spill Response Vessels

Tanker Vessel AKTEA OSRV
Multi Role Vessel AEGIS

Oil Spill Response Services

20

AKTEA OSRV
EPE with AKTEA through a successful competition in
a European Tender, undertook

the contract by the

European Maritime Safety Agency for the protection of

Eastern Mediterranean, Aegean Sea until the Sea of

Cyprus, from big scale oil spill pollution incidents.

Oil Spill Response Services

21

AKTEA Vessels Fleet

Oil skimmer vessels
fully equipped for

antipollution operations

13 Vessels Fleet

INTERNATIONAL PROJECTS
POLYECO has executed a wide range of international hazardous
waste management projects . Indicatively :
Kazakhstan: Two projects for the management of PCB oils and the management of PCB capacitors (United
Nations Development Program Kazakhstan).
Kosovo: Energy Sector Clean-up and Land Remediation Project. Waste removal and on-site treatment of waste
of the former KEK gasification plant (World Bank funded project).
Mauritius: Two projects, for the sustainable management of POPs waste (PCBs and DDT) and the
management of DDT contaminated soil (United Nations Development Program Mauritius).
Ethiopia: Disposal and safeguarding of obsolete pesticides and other associated hazardous chemicals (Ministry
of Agriculture, World Bank funded project).
Benin: Safeguarding and disposal of obsolete pesticides in Benin (Food and Agriculture Organization).
Georgia: Management of dumped POPs pesticides (United Nations Development Program Georgia).
Serbia: Disposal of napalm powder (United Nations Development Program Serbia)
Albania: Repackaging of hazardous chemical stockpiles of the Ministry of Defense of the Republic of Albania
(Organization for Security and Co-operation in Europe).
Mongolia & FYROM: On site decontamination technology for PCB contaminated oils (United Nations Industrial
Development Organization/Sea Marconi).
Greece: Rehabilitation and decontamination of CHYMA S.A. chemical storage facilities after an explosion
accident.
Energean oil and Gas: Sampling, identification, collection packaging, transportation, temporary storage,
management and final disposal of oil based drill cuttings (1.450 tons).

We take care of the environment on your behalf

DRILL CUTTINGS MANAGEMENT

Drill cuttings collection, transportation and disposal
Onshore & Offshore competency
Compliance to the Albanian Legislation
Preparing our Certification for ISO 29001

Compliance to the Greek Legislation

Preparing our Certification for ISO 29001

Drill Cuttings Services

Collection transportation storage disposal
Offshore or Onshore provision of services
Sea or land or combined transportation
Waste disposal through POLYECO SA GREECE
facilities
Certified
Containers
BS EN 12079
DNV 2.7-1

Case Study :
A GLOBAL MODEL FOR CUTTINGS WASTE
MANAGEMENT FOR ALBANIA
KEY ISSUES
ENVIRONMENTAL COMPLIANCE
WASTE MINIMIZATION
SIGNIFICANT IMPACT ON DRILLING AFE

CUTTINGS WASTE MANAGEMENT

Common Knowledge: Cuttings

Pit flooded with drilling fluid

FLOODED CUTTINGS PITS GENERATE EXTRA COSTS

Concerns about containment - /overflow, spillage; damage
to the environment
Mud spillages mud lost has significant cost impact on
drilling budget adding to the cost of mud built to replace
spillage volumes.
Public perception local population concerns about
potential damage to agriculture/fishing and contamination
of the domestic water supply/ water-table/ fresh water
reservoirs
Escalating waste-water treatment & disposal costs.
Escalating cuttings treatment/ transport & disposal costs.

CORRECT EQUIPMENT SELECTION (for borehole

instability, sloughing shales, over-pressured shales,
tectonically-stressed shales

Poor scalping shaker operations (sacking over

screens)
Wrong screens too fine for scalping operations.
Badly degraded screens on linear motion main
shakers
Screen cleaning not being maintained.
Correct procedures should be posted in the shaker
house.

EXCESS FLUID DISCHARGE

PROPER DISCHARGE

Poor Solids Control Supervision

Need strict shaker operations procedures (No whole mud
to be discharged from the shakers)
Screens should be maintained in prime operating
conditions (high pressure/ low volume wash-down guns)
Mud spill to be vacuumed up and returned to the active
system

SIGNIFICANT IMPACT ON DRILLING BUDGET

Correct Drilling Waste Management on location is essential to

reduce excess cuttings waste being generated.
Extra equipment, manpower and time for reprocessing
cuttings waste

COST OF CUTTINGS TREATMENT PROCESSES, eg.

Thermal systems
Hammer mill systems
Fixation processes
Land Farming
Bioremediation
Are significantly impacted by poor waste management on
location which can actually double or treble the waste
treatment volumes.

POLYECO SERVICES ARE COMMITTED TO

CUTTINGS WASTE MANAGEMENT PROCESSES
TO MINIMISE WASTE STREAMS AND THEREBY
REDUCING TOTAL DRILLING COSTS FOR THE
OPERATOR

Thank you for your attention.

For more information please visit our website:
www.polyeco.gr

We take care of the environment on your behalf

Presentation: Concessions and the legal

framework in Energy
Etleva Kondi, Director of Concessions,
Procurement and Privatisation,
Ministry of Energy and Industry

LEGAL FRAMEWORK
The Law no. 7973, dated 26.07.1995 On
Concessions and private sector
participation in public services and
infrastructure, changed.
The Law no.8527, dated 09.23.1999 On
the privatization of local hydropower
plants

The privatization of hydro power plants

with a capacity below 2 MW - 2001-2004
Through concession contracts, 30
hydropower plants, with total capacity
of 20 MW.
Through the privatization process by
auction, 15 hydropower plants, with total
capacity 1.5 MW.

 Concession

contracts realized
during the years 2005 2014:
o 173 signed concession contracts
for the construction of HPP 501
with total generation capacity of
about 2,200 MW and forecast
investment about 3 billion Euros.

The status of implementation of concessionary

contracts:
New hydropower plants in production, 83 plants,
(including and the existing small local hydropower
plants below 2 MW, awarded with ROT
concessions until the year 2004), with capacity 190
MW;
o New hydropower plants under construction, 38
plants, (including HPP Kaliva and Devoll), with
capacity 511 MW (HPP Kaliva - 100 MW and HPP
Devoll - 319 MW);
o New HPP, to whom has just begun the
construction, 380 plants, with capacity up to 1387
MW.

New Hydropower generation projects:

o Vjosa river cascade (except HPP
Kaliva), other 7 HPP, with total capacity
around 400 MW.
o Skavica HPP, on Drin river, with total
capacity around 300 350 MW.

The support of the investments in

electricity generation sector.
The approach of financial market on the
support of the investors and to the
capital market.
Strengthening of the Regulatory
Authority activity on monitoring an
increasingly more liberalized electricity
market to the local and regional level.

o
o

Perfecting of the electricity market

model, in accordance with the level of
liberalization.
Consolidation of institutions which
monitor concession contracts.
Consolidation of public and private
institutions that administer the intellectual
and industrial property rights on energy
sectors.

Faleminderit
Thank you
Etleva Kondi
Drejtore
Drejtoria e Konesioneve, Prokurimeve, Shpronsimeve dhe Privatizimit
MINISTRIA E ENERGJIS DHE INDUSTRIS
Adresa: Blvd Dshmoret e Kombit, 1001 , Tiran-Shqipri
Tel: +35542222245
Website: www.energjia.gov.al

Presentation: Strengthening integration on Energy

Community and investment opportunities
Lorenc Gordani, Professor of EU Law and
Project Director, ACERC

Strengthening Integration of the

Energy Community and Investment
Opportunities Offered for Albania
Adv. Lorenc Gordani, PhD
Professor of the European Union Law and
Project Director of ACERC
Albania Oil, Gas & Energy 2015 Summit 1718 March 2015 | Sheraton Tirana Hotel,
Tirana, Albania

Investment Opportunities Offered

by the Strengthening Integration of
EnC
The main bullet points:

(i) Dimension of liberalization among the

priorities towards an Energy Union;
(ii) Possibilities of the investments and
reforms
offered
by
Pan-European
prospective;
(iii) Creating an effective IEM, improve of the
dispute resolution and the investment
climate.

Energy Markets Liberalization on the

Western Balkans
Ten

years ago: Energy Community an

international treaty to create a single panEuropean energy market.
During the years, several revised: lastly, on 6 Oct.
2011, the MC adopted Third Energy Package with
deadline by 1st January 2015.

Today:

Six countries of the WBs involved in

an reformation within EU principles (Serbia
accomplished December 2014, most others
by mid-2015).

Energy Community as an Essential Part of

Energy Union
EC

Political Guidelines
on European Energy
Union: an important
element on
strengthening the
Energy Community
EC

Strategy for Energy

Union, 25 Feb 2015:
reaffirms effective
implementation of the
EU's acquis, and
incentivizing investments
in the energy sector.

Triumph of the Pan-European Dimension

Affords

reinforced by the recent events in the

East borders of the EU:
- no security of gas supply
without Ukraine (the last add
CPs)
- impossible future of EU
without WBs (unique route of
SGC)

Energy

Union goal: EU Energy Council on 5

March and European Council scheduled for 1920 March.

Energy

Community: upgrading based on the

report of the High Level Reflection Group.

Adaptation of the list of 35 Projects of

Energy Community Interest
In following, on the annual Ministerial Council of 24 Oct
2013 just two weeks after of published on 14 October
2013 of the Projects of common interest (PCIs) was
adopt a list of 35 Projects of Energy Community Interest
(PECIs).

Fourteen electricity generation: implied over 5000

megawatts of new capacity to be installed;

Nine electricity infrastructure: over 1600 km of

electricity lines;

Ten gas infrastructure: 2500 km of gas pipelines;

And two oil infrastructure projects: over 600 km of oil

pipes.

PECI Infrastructure Progress Monitoring

Nr

PCs

Project Commissio
PECI Electricity Generation Progress Monitoring
ID / TA ning Year
WBIF
Investment Still in Inv. decision
In
Idea
paper
taken
construction

01

AL

EG038

2015

02

AL

EG001

20152020

Nr

PCs

Project
ID /
TA
WBIF

Commis
sioning
Year

Hydro Power Plant Skavica

Inv. decision
taken

No progress

E-I assessment

PECI Electricity Infrastructure Progress Monitoring

Still in
paper

Ongoing

Conceptual

Wind Park Dajc-Velipoje

Investment
Idea

Completed

In
construction

Completed
Ongoing
No progress

01

AL - FYR of
MK

ET001

2018

4OO kV OHL SS Bitola (FYR of MK) - SS Elbasan

(AL)

Investment
decision

03

IT-AL

ET024

2014

400 kV HVDC SS Vlora - Bari West

Conceptual

04

Kosovo* AL

ET014

2016

400 kV OHL Tirana (AL) - Pristina (Kosovo*)

PCs

Project
ID /
Fund

Nr

Commiss
PECI Gas Infrastructure Progress Monitoring
ioning
Investment Still in Inv. decision
In
Year
Idea
paper
taken
construction

Construction
Completed
Ongoing
No progress

01

AL-MEHR-BiH

G008

2020

Ionian Adriatic Pipeline (IAP)

E-I assessment

02

GR-AL-IT

G022

2019

Trans Adriatic Pipeline (TAP)

Inv. decision

03

AL

G002

2017

EAGLE LNG Terminal

ACERC elaboration data ECS Sept. 2014 regard the Western Balkans

E-I assessment

Investment Requires in the Projects of

Energy Community Interest
(PECIs)*.
The studies concludes:
while

the
difficult
economic climate affects
investment flows, the
major concern relate to
the overall investment
climate
rather
than
availability of finance per
se.

Timeframe of the Propose Reform An

Energy Community for the Future
High

Level Reflection Group (HLRG) headed by

Professor Jerzy Buzek published its final report An
Energy Community for the Future on 11 Jun 2014.

The

12th MC enact procedural act 23 Sept 2014 for the

establishing a roadmap to steer the work on the
reform proposals to be submitted on the MC of Sept.
2015.

Analytical Paper Identifying Options into

Thematic Sections

Proposals still not to be consider in binding level &

without prejudice to the future reform of the Energy
Community.

The Introducing more Flexibility in the Acquis

The Pan-European Single Energy Market

The Expanding the

Environmental Area

The Opening and Protecting Energy Markets

The Better Enforcement and Dispute Settlement

The Improving the Investment Climate

The Enlarging the Energy Community

The Regulatory Cooperation

The Reforming Current Energy Community Institutions

Scope

of

the

Acquis

in

the

Opening and Protecting Energy Markets

I. Enhancing the
Effectiveness of
Competition Law
Enforcement: Procedural
rules to competition and
State aid & ECS executive
and investigative powers
II. Introducing Rules on
Public Procurement:
Broaden the scope by
including Directives
2004/17/EC and
2004/18/EC

A Pan-European Single Energy Market

I. Activating of the Title IV:
Revise
EUs
Decision
2006/500/EC
II. Gas Demand Aggregation: Allowing an entity for
demand aggregation on the imported energy, to
improve negotiation and constitute a credit-worthy
shipper to support implementation of critical
infrastructure.
III.
Interconnectors
between EU MSs and
CPs:
Consider
regardless of whether
they are between MSs
& CPs

Better Enforcement & Dispute Settlement

I. Encouraging Private
Enforcement: private
enforcement of the Treaty
before national courts

II. Strengthening the

framework for enforcement
and dispute settlement:
including the creation of a
regional court of justice
versus using arbitration
tribunals
III. Conditionality of Financial Assistance:
A mandatory (non-binding) opinion of ECS
should be introduced by donors in their
procedures

Improving the Investment Climate

I. Increase and Managing of Available Funding:
More funding in bilateral and multilateral
support, as well as from IFIs
II. Investments-Friendly Area:
Reducing risks on energy
trade
III. An Energy Community Risk Enhancement
Facility: address breach of contract, retroactive
measures,
discriminatory
taxation,
payment
default by public entities, etc

IV. Establish of
Complementary Projects:
Which could be creditenhanced through the ECREF

Implementation Approach of the Reform

An Energy Community for the Future
On

the 26 March the 36Th Permanent High Level Group

- PHLG is going to discuss the results.

The

MC would adopt measures at its meeting in 2015.

Thank you for your

attention!
Contact Details:
Adv. Lorenc Gordani, PhD
Project Director of ACERC
Cell: +355 69 95 32 443
Skype: lorenc_Gordani
www.albaniaenergy.org

Presentation: The refining sector of Albania

Christophe Darbord, Chief Executive Officer,
Armo Refinery

The Refining Sector of Albania

ALBANIA
Oil, GAS & ENERGY
2015 SUMMIT
March 18, 2015

The refining sector of Albania

1.

What is the refining capacity of Albania as of today and the

on-going modernization?

2.

Discussing new ideas on developing the refining sector by

expanding the current refining infrastructure.

3.

Global dynamics in mid-distillates in Europe.

Current Refining Capacity of Albania

AMRO operates the 2 refineries
Ballsh Refinery
Built in 1978
Largest refinery in Albania
Capacity around 20,000 bpd
Albanian and International
crude feed
Fier Refinery
Built in 1968
One
atmospheric
crude
column and a mild vacuum
column
Capacity around 10,000 bpd
Albanian crude feed

Current Refining Capacity of Albania

Products

Virgin Naphtha
Gasoline (to start later this year)
ULSD <10 ppm
Gasoil <100 ppm
Fuel oils
Petroleum Coke
Sulfur
Bitumen
Diluents

ARMO produces some qualities which are

not widely produced in the regional
refineries such as Bitumen, which is
produced in only 12/24 of the refineries,
Petcoke, in only 6/24 of the refineries or
Virgin naphtha, in only 5/24 of the
refineries.

On-going Modernization of Refineries

1.

Continue the
renovation and restart
of units

2.

Improve yields and

focus on quality

3.

Reduce losses

4.

Use natural gas feeding

5.

Improve Safety and

Environment protection

Developing the refining sector

Regional assets but connected

Local but connected to international

arbitrages and competition
Not sea-asset but still needs more
flexibility/options to compete with
large refineries or trading refinery
units
Quality to follow European standards

Infrastructure (x10 savings !!!)

Inland from trucking to railing to
pipes
Ports: to compete within the
Mediterranean: better draft, better
loading rate, larger tanks, improve
costs and transparency

Developing
A

the
Partnerships

refining

sector
Approach

With Crude oil

Producers

Quality testing, Reference, Long-term Off-take, Gradual

growth, Flexibility (quality, storage, volume)
Vlore terminal

With Gas
Producers

Long-term Contracts for Refining & Power Generation

Development pipes

Developing
A

the
Partnerships

refining

sector
Approach

With Oil Distributors

Quality, Brand, Homogeneous and Constant, Respectful

of Environment and People

With End-buyers

Quality and Competitive Price to promote local industry

With Logistics

Co-investment, Long-term commitment for lower

pricing

With Authorities

Security of Supply, Investment in Infrastructures,

Responsible company for People, Environment and
Economy

Global dynamics in mid-distillates in Europe

World Oil Demand

60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

10,000

OECD

NON-OECD

source: IEA, kbpd

Emerging Markets, from power to driving

Emerging Markets, from power to driving

Emerging Markets, from power to driving

Growth in Passenger cars 2010-2035

Source: OPEC

Growth of Road Networks (source OPEC)

Road Network in 2010

Road Network in 2035

Europe % Diesel of Driving Fuels

75%
70%
65%
60%
55%
50%
45%

N.W.E
Med
Sep-14

May-14

Jan-14

Sep-13

May-13

Jan-13

Sep-12

May-12

Jan-12

Sep-11

May-11

Jan-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

May-08

Jan-08

Sep-07

May-07

Jan-07

Sep-06

May-06

Jan-06

Sep-05

May-05

Jan-05

Europe Gasoil/Diesel Demand (ooo bpd)

3500

3300

3100

2900

2700

2500

2300

2100

1900

1700

1500

N.W.E
Med
Sep-14

May-14

Jan-14

Sep-13

May-13

Jan-13

Sep-12

May-12

Jan-12

Sep-11

May-11

Jan-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

May-08

Jan-08

Sep-07

May-07

Jan-07

Sep-06

May-06

Jan-06

Sep-05

May-05

Jan-05

Europe Gasoil/Diesel Production (ooo bpd)

3100

2900

2700

2500

2300

2100

1900

1700

1500

-200

N.W.E

-400

Med

Sep-14

May-14

Jan-14

Sep-13

May-13

1000

Jan-13

Sep-12

May-12

Jan-12

Sep-11

May-11

Jan-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

May-08

Jan-08

Sep-07

May-07

Jan-07

Sep-06

May-06

Jan-06

Sep-05

May-05

Jan-05

Europe Gasoil/Diesel Net Imports (ooo bpd)

US arbitrage

800

600

400

200

N.W.E
MED
STHAM

Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

Jan-12

Oct-11

Jul-11

Apr-11

Jan-11

Oct-10

Jul-10

Apr-10

Jan-10

Oct-09

Jul-09

Apr-09

Jan-09

Oct-08

Jul-08

Apr-08

Jan-08

Oct-07

Jul-07

Apr-07

Jan-07

Oct-06

Jul-06

Apr-06

Jan-06

Oct-05

Jul-05

Apr-05

Jan-05

US exports of distillates (ooo bpd)

900

800

700

600

500

400

300

200

100

Sep-14

May-14

Jan-14

Sep-13

May-13

Jan-13

Sep-12

May-12

Jan-12

Sep-11

May-11

Jan-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

May-08

Jan-08

Sep-07

May-07

Jan-07

Sep-06

May-06

Jan-06

Sep-05

May-05

Jan-05

Alg/Egypt/Turkey Gasoil/Diesel demand(ooo bpd)

1000

900

800

700

600

500

400

800
Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

Jan-12

Oct-11

Jul-11

Apr-11

Jan-11

Oct-10

Jul-10

Apr-10

Jan-10

Oct-09

Jul-09

Apr-09

Jan-09

Oct-08

Jul-08

Apr-08

Jan-08

Oct-07

Jul-07

Apr-07

Jan-07

Oct-06

Jul-06

Apr-06

Jan-06

Oct-05

Jul-05

Apr-05

Jan-05

Iran/Iraq/Kuwait/Qatar/Saudi A./UAE
Gasoil/Diesel demand(ooo bpd)

2000

1800

1600

1400

1200

1000

Large Refining Capacity expansion East of Suez

(kbpd)
500
450
400
350
300
250
200
150
100
50
0

Saudi Jubail End China Sichuan China Quanzhou Saudi Yanbu end UAE Ruwais end
2013
beg. 2014
mid 2014
2014
2014

India Paradip
beg. 2015

Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14

Saudi A. Gasoil/Diesel exports(ooo bpd)

400

350

300

250

200

150

100

50

China
India

-200

-400

-600

-800

Korea

Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

Jan-12

Oct-11

Jul-11

Apr-11

Jan-11

Oct-10

Jul-10

Apr-10

Jan-10

Oct-09

Jul-09

Apr-09

Jan-09

Oct-08

Jul-08

Apr-08

Jan-08

Oct-07

Jul-07

Apr-07

Jan-07

Oct-06

Jul-06

Apr-06

Jan-06

Oct-05

Jul-05

Apr-05

Jan-05

Oct-04

Jul-04

Apr-04

Jan-04

Asia net imports (000 bpd)

400

200

Global Petroleum dynamics

Confirm a role and opportunities

to Refineries in Albania
But increasing competition forces
modernization
and
better
infrastructures

Thank you for your attention

Street Papa Gjon Pali II

ABA Business Center, 8 Floor
Tirana,Albania

Presentation: What is the energy investment

outlook in Albania for 2020?
Entela ipa, Advisor to the
Minister of Energy and Industry

ALBANIA OIL, GAS & ENERGY

2015 SUMMIT
What is the energy investment outlook
in Albania for 2020
17 -18 March 2015

OBJECTIVES OF THE ALBANIAN

ENERGY STRATEGY 2015-2030
The main elements of national energy strategy helped
to identify the investment needs in energy infrastructure
and where actions can lead to cost-efficient solutions.
The demand scenario analysis showed how the future
energy consumption of Albania may develop and
what are the estimated costs of covering (or not
covering) this demand.
Providing secure and sustainable energy supply to
customers delivering uninterrupted energy, at
affordable prices while taking into account
environmental concerns.

OBJECTIVES OF THE ENERGY

STRATEGY 2015-2030
Create a legal and regulatory framework for the energy
markets and to allow trading energy across their borders.
Attracting investments in energy in order to meet the
increasing demand and to improve security of supply,
energy efficiency and the use of renewable energy sources.
Improving energy security implies, among others, to
promote diversity, efficiency and flexibility within the energy
sectors, to be prepared to respond to energy related
emergencies.

Attracting investments in energy

Actions taken to meet the energy strategy objectives

Actions in relation to price regulation and network tariffs and
removal of regulatory barriers, in order to achieve the objective
for attracting investments.
Introduce common capacity allocation mechanism
(coordinated auctions), establish one or more power exchanges
and implement price based market coupling.
Actions related to energy infrastructure shall ensure that there is
less chance of a supply gap between energy demand and
supply, based on forecasts of demand and supply.
Interconnection plans are driven by the same needs that
includes connecting new generation, integrating energy markets
and new renewable energy in the grid, enhancing the security of
supply, and improving the reliability and quality of energy
services provided. Cross border interconnections capacities
have been identified already as priorities:

Actions related to energy efficiency

and renewable energy
The most important action is to set and achieve a energy savings target.
Increase efficient use of energy final energy consumption, through
National Energy Efficiency Action Plans.
One of the key actions is to establish a target for renewable energy at
the national level.
Increase renewable energy share of gross final energy consumption in
line with the methodology
Allow priority access or guaranteed access to the grid for renewable
energy (RE).
Adopt and implement National Renewable Energy Action Plans.
Simplify and accelerate the authorization procedures for RE plants and
grid connections.

NEW POWER SECTOR LAW

Main objectives

Creation of a legal framework that will secure e reliable and

continuous supply of power to its customers;
Creating a functional and competitive power market;
Minimizing the costs of suppy;
Protection and compliance with the environment;

Protection of vulnerable customers;

Ensuring the development of a transmission and distribution
network in compliance with the development plans.

NEW POWER SECTOR LAW

Main objectives

Facilitating authorizing procedurs for new generating

capacities;
Opening the market, allowing the customers to freely
choose their supplier;
Guaranteeing all households and small non-households
the access to Universal Supply Service;
Fostering the role of the Regulator toward monitoring
and action-taking in cases when threatened the
priniciple of transparency and non-discrimination;
Promote competition, by charging the Regulator with
the role of preparing methodologies and tariffs that
cover costs.

Role and functions of TSO

Unbundling of Transmission System Operator including ownership
unbundling.
Certification of TSO befor issuing the new license from ERE.
10 year network development plan prepared by TSO and
approved by ERE.
Procurement of power for losses in transmission network,
balancingf and ancillary services based on competitive market
procedures.

Congestion managment and alocation of interconnection

capacities based on market based procedurs, ensuring proper
economic signals for alla network users.
TSO authorized to cooperate with neighboring TSOs for allocation
of interconnection capacities, including the creation of inter
transmission compensatin mechanism.

Role and functions of DSO

Unbundling of the function of distribution from the supply.
Preparation of a 5 years development plan for the
distribution network, to be approved by ERE.
New concept on closed distribution network, allowing
operation of a distribution network mainly used for
providing distribution service to a limited area on which is
located a production or services line and its facilities, not
bound to regulated conditions by ERE.
Preparation of distribution network development plans in
compliance with the transmission network development
plan.

Metering
TSO and DSO responsible for the function of metering in
their network.
Draft Law provides for outsourcing of this service to a third
party.
Verification of meters from a third independent party,
authorized by General Directorate of Metrology.
Preparation of a roll - out for the implementation of a 10
year program on smart metering system.

Supply
Definition of the Universal Service to be offered under
specific conditions to the customers connected in low
voltage 0.4 kV.
Definition of Supplier of Last Resort service for the
costumer that lost their supplier.
Specific provisions for the execution of electricity bills ,
and enforce the lien binding for not executing payments.

Special provisions for consumer protection , including

special conditions for the protection of vulnerable
customers.

Market Provision
Within 31 December 2018 a organized market of
electricity will be created.
The role of Market Operator will be strengthened.
Customers connected to the level of 35 kV voltage are
obliged to be supplied into the liberalized market no later
than December 31, 2015;
Customers connected to 20 kV voltage, no later than
December 31, 2016;
Whereas customers connected to the 10 kV and 6 kV
voltages no later than December 31, 2017.
Costumers connected to 0.4 kV will provide energy for
their needs from the Universal Supplier.

ACTION RELATED TO
PROTECTION OF CUSTOMERS
Phase out price regulation for large customers in line with the
Treaty.
It is important to ensure that vulnerable customers are protected.
In this regard, we have defined clearly in the law the definition of
vulnerable energy customers subject to special protection and
support.
Moreover, we have improved targeted national programs to
support vulnerable costumers should be implemented, as well as
programs to increase energy efficiency and greater use of
renewable energy in households.
Create a clear and transparent regulatory framework, set
standards for quality of services, handling consumer complaints,
and provide clear guidelines for changing energy supplier.

Long-Term Challenges

Demand for energy to ensure economic and social

development.

What are the best practices to cover demand on a least

coast principle.

How to achieve short term increase of energy efficiency,

in compliance with country's obligations deriving from EU
directives.

How to increase the use RES and maintain an

economically viable approach to consumers.

How to address cost reflective development of tariffs, to

sustain private/public investment, and ensure customer
protection

How to effectively and efficiently support the vulnerable

group.

Integrated Energy Management

Diversification of energy sources by further developing

the gas market and its application from different sectors.

Connection with Regional gas lines, TAP and IAP.

Supporting new projects on national gas reserves, in the

frame of hydrocarbon agreements (declared discovery
from SHELL and Petromanas on the results of Shpiragu-2
perforation).

Gasification Masterplan for Albania (MEI has secure

financing in the frame of WBIF).

Investing on new generating units of electricity through

Gas TPP, initially Vlor TPP for existing capacity of 97 MW,
and further expanding its capacity, or construction
/reconstruction of new/existing TPPs, such as Fier TPP.

ACTUAL PROJECTS IN
GENERATION
Dams Safety Project
Under implementation the component Rehabilitation of the
Electromechanical Part of HEC Koman;
Rehabilitation of Bjefit of the HEC Koman.
Project for construction of HPP on the Devolli river
Construction of hydropower of Moglic, 178.2 MW, 445 GWh /
year
Construction of hydropower of Kokel, 35,2 MW, 92GWh / year
Construction of hydropower of Banje, 64,8MW, 252GWh / year
Total production 278.2 MW 789 GWh / year - Total Investment of
about 940 million euros.

ACTUAL PROJECTS IN
TRANSMISSION
Construction 110 kV line Babice - Sarande (part of the South
corridor)
Construction of 110 kV Line Babice - Sarande
Construction of two substations Orikumi and Himara
Financed by KfW Construction of 110 kV Line Korce - Erseke Permet Tepelene - Memaliaj ( part of the South Corridor)
Construction of 110 kV line Ersek - Permet - Tepelene Memaliaj Financed by KfW.

ACTUAL PROJECTS IN
INTERCONNECTORS
The Project for the construction of 400 kV Line Tirana2 - Pristina A
Total length of 242 km. Length in the Albanian part 155.5 km of
which: 80.5 km completion of the second part Tirana - V. Dejes ( in a
400 kV line - Podgorica ) 75 km new line with a circuit V.Dejes
Border (Morina )
Investment: About 34.3 million EUR loan for the Albanian part
financing by KfW ( 42 million Euro ).

Contracts :
Lot 1- Albanian part of the line 28.9 million ; contractor Energoinvest.
Lot 2 - Works in Sub /station; Albanian Part 5.4 million Euro.

Duration : 30 months from the delivery of the first installment.

Approximately around the end of 2016.

POTENTIAL PROJECTS
GENERATION
The project for the construction of hydroelectric
stations on the Black Drini River ( HPP Skavica );
Hydropower Skavica New Village.
The project for the construction of hydroelectric
stations on the Vjosa river.

It is envisaged the construction of about 9 hydropower.

Installed capacity about 350 MW, average annual
energy produced 1,500 GWh with investment value
around 1 Billion Euro.

POTENCIAL PROJECTS
TRANSMISSION
The project for construction of 220 kV Transmission
Line Tirana 2 - Rrashbull and the Substation of
Rogozhina.
The project for the construction of 220 kV line
Elbasan, Fier and substation Kucova Ring.

The project for the construction of 110 kV substation

Tirana and Tirana 3.

POTENTIAL PROJECTS
TRANSMISSION

In the Albanian part of the transmission network are

identified two suitable points for connecting
underwater cable with Italy.
Porto Romano area about 250 km length , the value of
investing about 530 Mln Euro
Vlora area about 135 km length , the value of investing
about 380 Mln Euro.

POTENTIAL PROJECTS
INTERCONNECTORS

The project for the construction of 110 kV interconnection line

Kukes Prizeren:
length for the Albanian part ( Kukes - Morine ) is about 11 km;
increase the security of Albania and Kosova system . This affects to
some extent in the regional security system interconnection.
realized a reduction of operating costs of systems of both
countries.
allows a better Dispatching generation of both countries,
helps optimize short - term and medium - term hydrological
resources in Albania and Kosovo.

POTENTIAL PROJECTS
INTERCONNECTORS

The project for the construction of 400 kV interconnection

line Albania Macedonia:
Increases security of electricity supply in our country and
improves electricity flows in the region, reduce electricity losses
in high voltage lines.
The value of the investment in the Albanian part is estimated
about 43 million Euro.
With the construction of this line ends connection of Albania
with 400 kV lines to neighboring border.

POTENTIAL PROJECTS
INTERCONNECTORS

The project for the construction of 500 kV line interconnection

Albania Italy. Advantages :
favorable geographic position, the distance between the
transmission networks in both countries is short.
the possibility of transit through the Albania transmission network
from Balkan countries toward Italy. Albania's transmission
network is already connected with the regional network and
exchanges between Italy and the Balkan region can be realized
without any restriction from the Albania network.

construction of new generation capacities mainly from

renewable sources in Albania, will create substantial surplus and
exporting towards Italy.
the possibility of preserving the balance of exchange from a
joint operation of hydropower to generate uncontrolled power
from wind and solar power, creating the possibility of an optimal
utilization of the line, charging it for its maximum capacity at any
time.

POTENTIAL PROJECTS
Distribution

Investments in enhancing electricity production and

transmission capacities necessarily require investments in
improving and strengthening the distribution grid of electrical
energy, so that all investments go towards improving the
quality and security of electricity supply for customers.
Given the abuses that have been made with electricity, it is
imperative to intervene in the metering system as well.
Investments in the distribution of electricity include interventions
in the distributions system of substations, in the medium voltage
grid, in the TM/TU cabins, as well as in the low voltage grid.
To realize these investments, 150 million $ have been provided
from the World Bank, of which 93 million will be used for the
distribution system and 30 million for the installation of meters in
the distribution system of substations.

POTENTIAL PROJECTS
SMART METERS

The implementation of SMART meters is subject to a preliminary

economic assessment which should take into account all long term
costs and benefits of clients and the market, the type of SMART
meters need to be the most economically effective, as well as the
proper time to implement this metering system.
The economic assessment will be prepared within 1 year from the
date of entry of this law. Based on this assessment, the Ministry
develops a SMART meters implementation timetable for a 10 year
period.
ERE will ensure the inter-operability of the different metering systems
which will be implemented in all over the country, paying proper
importance to the use of appropriate standards as well as the
development of the internal power market.

Projects of Energy Community

Interest
The projects were grouped into four categories:
Electricity Infrastructure Projects
Electricity Generation Projects
Gas Infrastructure Projects
Oil Infrastructure Projects

Electricity Generation :
Hydro Power Plant Skavica
Wind Park Dajc-VelipojeAlbania

Electricity Infrastructure :
AL - FYR of MK 400 kV OHL SS Bitola (FYR of MK) SS Elbasan (AL).

Gas Infrastructure :
AL-ME-HR-BiH Ionian Adriatic Pipeline (IAP)

THANK YOU

Presentation: Extractive Industry Transparency

Initiative - EITI in Albania
Dorina inari, Director, Extractive Industries
Transparency Initiative (EITI) Albania

THE
UNDERGROUND
Transparency on
Shared Wealth

Albania Oil, Gas & Energy 2015 Summit

Tirana March 17-18 , 2015

What is the
The Extractive

?
Industries

Transparency Initiative (EITI) is a global

coalition in which governments, companies
and civil society work together for
transparency and accountable management of
revenues from natural resources.

EITI principle:
A countrys natural resources belong to its citizens!
Wealth from natural resources can lead to economic
growth and social development in a country. Not disclosing
information about this wealth can increase the risk of
distrust, weak governance and conflict. Openness about
how a country manages its natural resources is necessary
to ensure that the resources benefit all citizens.

Many countries suffer the "resource curse,

the paradox that countries with abundant
oil, gas and mineral resources are
economically poorer than countries with
fewer of these resources.

Through implementing the global EITI

transparency standard, countries ensure more
transparency of revenues from its oil, gas and
mineral resources

 The
is a global standard for the
governance of a countrys oil, gas and mineral
resources. The standard is implemented by
governments, in collaboration with companies
and civil society.
Countries implementing the EITI disclose
information on tax payments, licences,
contracts, production and other key
elements around resource extraction.

48 countries now implement the EITI

Standard around the world. USA, UK &
Germany have joined the initiative late
2014

35

Countries have
produced reports

1,5

Trillion USD disclosed

Supporters
Over 90 major companies involved in oil, gas
and mining are committed to supporting the
EITI, through operations in implementing countries, international-level
commitments and industry associations. The EITI has won the support of
over 90 global investment institutions that collectively manage over US
$19 trillion.

A broad coalition of governments, civil

society and international organisations
supports the EITI, including 400 NGOs, World Bank,

International Monetary Fund, International Council on Mining and Metals

and the regional development banks. These organisations provide
technical and financial support to implementing countries, and support
EITI outreach.

The EITI Standard has two core

elements:

Governments, together with companies and

civil society, work to improve the
management of natural resources by
implementing the EITI Standard.

How is value
captured?
Productio
n Data

Revenue
Collection

Where do benefits
go?
State
Owned

SubNationa
l

Enterprises

Allocation
of Rights

Social
Impac
t

Revenue
Managemen
t

From extraction to
development

Whats the
benefit of
EITI?

Governments
A transparent and open government enhances citizens trust.
By adopting an internationally recognized transparency standard,
governments perform in an improved investment climate by providing a clear
signal to investors and international financial institutions that the government is
committed to greater transparency, commitment to reform and anticorruption in a volatile sector.
Implementing the EITI Standard improves government systems and can lead
to improved tax collection and budgetary plannings.
EITI also assists in strengthening accountability and good governance, as
well as promoting greater economic and political stability. This, in turn, can
contribute to the prevention of conflict based around the oil, mining and gas
sectors.

Companies
What does an investor seek?
Stability,
Certainty
Clarity of country tax rules and procedures.
Benefit from a level playing field in which all companies are required to
disclose the same information.
Benefit from mitigating political and reputational risks. Political instability
caused by opaque governance is a clear threat to investments. In extractive
industries, where investments are capital intensive and dependent on longterm stability to generate returns, reducing such instability is beneficial for
business.
Transparency of payments made to a government can also help to
demonstrate the contribution that their investment makes to a country
enables a better engage with citizens and civil society.

Citizens and Civil Society

A countrys EITI Report informs the public of what happens with its
natural resources.
Benefit from Reliable and accessible information about their
countrys natural resources.
Benefit increasing the amount of information in the public domain
about those revenues that governments manage on behalf of
citizens, thereby making their governments more accountable.
Civil society is an essential partner in implementing the EITI.

CEO 2014

EITI Albania Objectives

1. Show direct and indirect contribution of extractives to the economy
2. Increase public understanding of the management of natural resources and
public accessibility of data
3. Strengthen national resource management / strengthen government
systems

4. Track how revenues are allocated and spent, in particular at local levels
5. Create opportunities for dialogue and constructive engagement in natural
resource management in order to build trust and reduce conflict among
stakeholders
6. Strengthen business environment and increase investments

Implementation timeline

Contribution of Extractive
Industries towards GDP
2008-2012 in billion ALL
2012

5.6%

1,335

2011

4.3%

1,301

2010

3.1%

1,240

2009

2%

1,144

2008

2.4%

1,081
-

200

400

Total PBB ne miliarde Lek

600

800

1,000

1,200

Kontributi ne % i industria nxjerrese (GDP)

1,400

1,600

EITI Legislative Agenda

EITI disclosure mandatory in Mining Code (October 2014)
In the framework of the global initiative for transparency in extractive
industries, EITI Albania, has the right to ask and receive information from
the mining operators, as well as from the Tax, Customs and Local
Administration. EITI Albania has the obligation to publish to its annual EITI
reports the data on the payments of fiscal obligations by the mining
operators.
EITI disclosure mandatory in Hydro-carbons law nr. 7746, date 28.7.1993
(Exploration and Exploration), (March 2015)

In the framework of the global initiative for transparency in extractive

industries, the licensed operators, as well as Tax, Customs Directorates
and Central and Local Administration have the obligation to report
according to the EITI standard and in accordance with the regulations
issued based on EITI standard. EITI Albania has the duty to publish these
data to its annual EITI reports according to the EITI standard.

EITI Studies Agenda

Revenue Potential
The main objective of this study will be to examine the potential
contribution of the Albanian oil and mining sector to income and growth
of the wider economy, with a focus on identifying binding constraints that
are open to government action.

Hydro-energy scoping study

The main objective of this study will be to assess the contribution of the
hydro-energy sector to the country GDP and state budget with the
intention to include this sector under the cadre of Albania EITI reports

EITI Data Integrated Management Systems feasibility study

The study will seek to produce a technical report which will inform the
current status of the IT systems of state agencies with regard to EITI data
reporting, and propose a solution for integration of EITI data

Other complementary efforts to

improve revenue transparency?
Goal: Ensure that the poorest citizens can also reap
the benefits of the natural resources boom
The US recently enacted mandatory
disclosure legislation as part of the US
Dodd-Frank Financial Reform Act,
(Cardin Lugar amendment) requiring
that all companies listed in the US
disclose their payments to
governments in all countries where
they operate.

What does the law require and achieve?

Oil, gas and mining companies are required to
disclose what they pay to the U.S. government
and foreign governments as part of their
annual filings to the U.S. Securities and
Exchange Commission (SEC), which is the
agency that regulates the U.S. financial sector.

This law shines a light on billions in payments

to governments from oil, gas and mining
companies.

Extractive transparency in EU fast

becoming a reality
As a response to international efforts on transparency the
European Union has passed similar legislation for the New EU Reporting
Standards through its CBCR Initiative that will :
Adapt existing EU legislation to promote transparency and good
governance as regards the exploitation of natural resources
Oblige multinational compagnies to disclose payements to governements
on a country and Project basis. Listed and large unlisted companies in the
EU with activities in the oil, gas, mining and logging sectors will be
affected by this legislation

Thank You
www.albeiti.org

Please visit us at:

www.albeiti.org
www.eiti.org

Presentation : The National Economic Council;

Fostering Business-Government dialogue
Elona Varfi, COO,
National Economic Council (NEC)

NATIONAL ECONOMIC COUNCIL

(NEC)
TIRANA, MARCH 17-18, 2015

What is the National Economic

Council (NEC)?
Institutionalization of the consultation process between the
business community and the government

A discussion platform for economic policies and

development reforms in Albania
It is not an organization or institution but a process

NEC Purpose
The National Economic Council ensures:
Institutional cooperation and the public-private partnership;
Dialogue and consultation between the government and the
private sector;
Transparency on public decision-making and the
representation of the public sector in this process.
Law on Establishment and Operation of the National Economic
Council (law no. 57/2014, art. 1)

The Secretariat of NEC

Headed by the Secretary General
Supports, coordinates and organizes NEC activities
Operates a web portal (www.kek.al) for receiving from
business organizations comments, observations, proposals
and denunciations on arbitrary practices, analyzes and
distributes to the relevant authorities the processed
information
Monitors and mediates the dialogue between the public
authorities and the private sector

Consultation Process
Consultation is mandatory
Publication
Consultation
Engagement of interest groups

A Three Way Consultation Process:

High representation periodic meetings
Exchange of comments, suggestions or
proposals via www.kek.al

Other forms of meetings, subcommittees, etc.

NEC Interactive Portal

www.kek.al is freely accessible by everyone but only business
organizations can upload comments, proposals and
denunciations
Drafts of laws and secondary legislation affecting the
economy of the country should be published for sixty (60)
days in the web portal for review and comments of the
business community

Periodic Meetings
Periodic meetings are held every month led by NEC Chairman,
the Prime Minister of Albania.
Once in three months, special meetings are conducted with
the participation of foreign representatives and academics of
economic background.

NEC Participants
Permanent participants are:
The Minister responsible for the economy
The Minister responsible for finance
Secretary General
The Governor of the Bank of Albania
Six personalities of national and world economy
Six largest taxpayers of the business community, domestic or
foreign (rotated on semestral basis)
Four business organizations (rotated on semestral basis)

Other Participants
The representatives of international organizations permanent
members of NEC , including but not limited to:
International Monetary Fund - IMF
International Financial Corporation - IFC
World Bank - WB
European Bank for Reconstruction and Development EBRD
The Director General of Taxation
The Director General of Customs

The Investment Committee

Supported by EBRD
Provides NEC with:
Studies
Reports
Recommendations
Operates as an economic ombudsman

Key policy issues covered

11 monthly meetings so far, where many issues of importance
to business were discussed and consulted:

The Agreement of Albania with World Bank and IMF

The payment of arrears to private businesses
EU negotiation process
New VAT law
Structural reforms
Pension reform
Reduction of Informal Economy
Challenges in the Energy Sector
Tourism
The draft budget for the year 2015
2015 Fiscal package

NEC Activities

Forum presenting the New Customs Code project.

Forum organized between private producers and Minister of Energy and
Industry on The problems the sector encountered, market perspectives
and forms of cooperation, which led to the signing of a Memorandum of
Understanding between the Ministry of Energy and Industry and the
Albanian Renewable Energy Association
Roundtable on "The Role of the Taxpayer Advocate: Challenges and the
Future
Business Forum for the Pharmaceutical market in Albania
Roundtable On the unpaid energy the State owes to Private Producers
Roundtable on The potential involvement of banks in financing the
Albanian Power Corporation.

Challenges for the future

Optimise NEC's role
Increase the efficiency of NEC and the quality of the dialogue
Improve NEC's representativeness and credibility
Raise the profile of NEC

National Economic Council

Follow us
www.kek.al

Keynote Presentation from the Ministry of Energy

and Industry - Electricity Directorate
Agim Bregasi, Director of Policies and Development
of Electricity, Ministry of Energy and Industry

Ministry of Energy and Industry

ALBANIAN GOVERNMENTS POLICY

FOR ENERGY SECURITY
AGIM BREGASI: DIRECTOR OF POWER SECTOR

Tirana, 17-18 MARCH 2015

Domestic production and Consumption

The data for the period 1985 2012 Annual Report 2012 published by the Energy Regulatory Autority.
T dhnat pr periudhn 2013-2025 jan projeksion bazuar mbi t dhnat aktuale.

Vision of the Government

1. Changing the electric energy sector in a profitable sector by
fulfilling its financial obligations towards the states budget;
2. Increase Security of energy supply:
a. Increase of generation capacity;
b. Increase of transmissions capacity;

3. Drafting a legal framework and market model in compliance

with EU Directives and the 3-rd Package of internal markets;
4. Setting power tariffs and prices to cover costs of activities.
5. Further liberalization of the market
6. Drafting a National Energy Strategy
Roadmap 2030;

in compliance with

Development of the Sector

Planned actions
Increasing Distribution sector accountability and performance;
Achievement of objectives on lowering losses and increasing
collections;

Legal Reforms in the Power Sector

Drafting a new law On the Power Sector, amending
the existing law in accordance with EU Directives and 3rd Package;
Drafting a new law On Renewable Energies and On
Energy Efficiency;
Drafting of sub-legal and regulatory acts of these laws;
Tariff reform.

National Energy Strategy (2016 2030)

The National Energy Strategy (2015-2030) is foreseen to be completed within
2015 and it includes:
Fulfilling power demand according to the lowest-cost principle;
Increasing RES/ EE in all sectors in compliance with EU directives and the
Treaty of Energy Community;
Using natural gas after implementing TAP project;
Long-term progress of power tariffs and prices;
Regional cooperation for establishing a regional market.

Main power production and transmissions

projects
Main projects for increasing power generation capacities :
1. Construction of Skavica HPP;
2. Construction of HPPs in Vjosa river;

Main projects for increasing interconnections transmission capacity:

1. Construction of 400 kV line Albania Kosovo ( in construction )
2. Construction of 400 kV line Albania Macedonia
3. Construction of 400 kV line 400 kV Albania - Italy

Main projects for increasing in-country transmission capacity:

1. Construction of 220 kV line Tirana 2 Rrashbull and 220/110 kV ESS in Rrogozhin
2. Construction of 220 kV line Elbasan Fier and 220/110 kV ESS Kuov
3. 110 kV Tirana Ring and Tirana 3 ESS

Skavica HPP (Drini i Zi River)

What represents Skavica HPP:

Located in north east of Albania

Unused part of Drin river
(Drini i Zi)
Upper HPP in Drin River Cascade
Regulatory role for the Cascade
Preventive role on floods of lowerShkodra zone
Existing pre-feasibility study with acceptable options
1. Skavica HPP;
2. Katundi i Ri HPP.

Drini River Cascade (Ohri See)

Scheme with two HPPs: longitudinal

profile of the Cascade

CHARACTERISTICS
HPP

Altitude of the dam

Power

Energy

Cost

Katundi i Ri

445 m

49 MW

206 GWh

99.5 mil EU

Skavica 385
Total

385 m

119 MW
168 MW

467 GWh
672 GWh

214 mil EU
(without including the benefits of the
generation from the existing HPPs)

Alternative:
Katundi i Ri

445 m

49 MW

206 GWh

99.5 mil EU

Skavica 395 m

395 m

132 MW

488 GWh

248.3 mil EU

181 MW

694 GWh

337.8 mil EU

Total

This alternative is more acceptable from the generation point of view and from the regulatory role
of Skavica reservoir, but comprises high environmental and social impacts, along with high
expropriation costs

Vjosa River HPPs

What represents Vjosa River:

Located south of Albania

Second river enlisted by its power potential

No other HPPs built on its stream

Stable and considerable flow

Certified multi-year measurements

Existing preliminary feasibility study:

Identified 3 main branches;

Determined the possibility of building 9 HPPs

Longitudinal Profile of the Cascade with the

Proposed HPPs

CHARACTERISTICS- SOGREAH Scheme

CHARACTERISTICS - MEI consultant Scheme

Transmission capacities with regional countries

o Existing interconnection lines:
1. 400 kV line Elbasan (Albania)
Kardhja (Greece)
2. 400 kV line Elbasan (Albania
Podgorice ( Monte Negro)
3. 220 kV line Fierze ( Albania )
Prishtine ( Kosovo )
4. 220 kV line Vau i Dejes
(Albania)

Podgorice
( Montenegro )
5. 150 kV line Bistrica 1 (Albania
) Igumenice (Greece)
o Interconnection
lines
In
construction
400 kV line Tirane (Albani)Prishtine (Kosovo)
oNew interconection line:
1. Albania Macedonia
2. Albania - Italia

New interconnection lines with regional countries

1. 400 kV Interconnection line Albania-Kosovo;

Investments value for Albanian near 42 milion Euro

2. 400 kV Interconnection line Albania-Macedonia

Investments value for Albanian near 28 milion Euro;

3. 500 kV Interconnection line Albanian Italy;

There are two options:

From Porto Romano, length 250 km, investment value near 530 Mln Euro

From Vlora, length 135 km, investment value near 380 Mln Euro

Interconnection line 400 kV , Tirana 2 Kosova

B
The project is a German Government
investment financed by KfW Bank, 42 million
Euro Albanian Part and includes:

Lot1:
Substations Extension: new 120 MVAr shunt
reactor in Tirana2 Ss; Joint LFC for two control
areas (OST and KOSTT), Kosova2
Substations Extension.
Lot2:
400 kV overhead line. Total length of the line
242 km (162 km new line and 80 km
completion of second circuit of the part of
Tirana-Podgorica line, from Tirana to Lac
Qyrsaqe). 90 km Kosova part, and 152 km
Albanian part.
The project is under implementation stage and
is expected to be in operation on beginning
2016.

400 kV interconnection line Elbasan- Bitola

(Macedonia)
This project comprises:
- The construction of the new 400
kV interconnection line, ElbasanBitola, approximately 151 km long,
56 km in Albanian territory.
- The extension of the 400 kV
Elbasan2 substation by new 400 kV
double busbars, new 400 kV line
bays and 120 MVAR shunt reactor.
- Feasibility study of this project,
funded under the WBIF projects,
is prepared by the consortium
COVI / IPF in 2012.

What realizes?
- Increases the security of
electricity supply to our
country,
- Improves circulation flows in
the region
- reduces electricity losses
.

A substantial Regional Integrated Gasification - Initiative is the

possible interconection of Albania with regional gas market.
IAP

LNG
TERMINALS

WBR

TAP

IGI

Thanks for your

Attention!
Agim BREGASI
MINISTRY OF ENERGY AND INDUSTRY
Directory of Power Sector
Bulevardi Deshmoret e Kombit, Tiran, Shqipri
Mob: +355 66 40 56 186
agim.bregasi@energjia.gov.al | www.energjia.gov.al

Presentation: An overview of Albanias greatest

energy source Hydropower
Aas Agnar, Director of Governmental Affairs, Devoll
Hydropower, Albania

DEVOLL
HYDROPOWER
PROJECT
ALBANIA OIL, GAS & ENERGY 2015 SUMMIT
Tirana March17-18 2015

Agnar Aas
Director of Governmental Affairs

Statkrafts production
Norway
12 518 MW

*
Installed capacity

97%

17 600 MW

renewable
energy

Power production

3 600

56 TWh

employees

UK
273 MW
Germany
2 692 MW

Nepal 23 MW

Laos 100 MW

Albania
(project)

Panama
(project)
Peru
163 MW
(+ project)

STATKRAFT

Sweden
1 315 MW

Chile
94 MW

SN POWER/
AGUA IMARA

* 2013 figures. Includes: - Statkraft/SN Powers share of installed capacity

Turkey
20 MW
(+ projects)

Brazil
86 MW

India
91 MW

Zambia
6 MW

Philippines
149 MW

Statkraft in Europe
Norway

Sweden

Finland
The Netherlands
Germany
United Kingdom

Romania
Serbia
Bulgaria

Belgium

France

Albania

Turkey

Overview

256 MW
729 GWh
535 Mill.

Time Schedule
BASE CASE PROJECT IMPLEMENTATION TIMESCHEDULE
Activity

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Concession Agreement into Force

Pre-Construction Phase
Preparatory Works - Banja
Preparatory Road Works - Moglic
Construction Transmission Lines
Construction Banj HPP
Construction Moglic HPP
Construction Kokl HPP

Current stage

ESM Planning based on international best practice:

Required by Albania law:

Recommended by International best practice:

Strategic Environmental Assessment

DHP Sustainability Policy

Environmental and Social Screening

ESIA Planning Report

Environment and Social Impact

Assessment (ESIA)

Pre-feasibility Study

Environmental and Social Scoping

Strategic Environmental Assessment

Environment and Social Impact Assessment (ESIA)

Entitlement Matrix

Environment and Social Management Plans

Grievance Redress Mechanism Policy

Annual Implementation Plans

Banja HPP

70 MW
254 GWh

February 2015
9

February 2015
10

Existing Dam 2012

Grouting gallery
Support fill
(river gravel)
)

Filter

Core

Cofferdam

February 2015
12

February 2015
13

February 2015
14

Moglice dam and spillway

15

Road M15 By-pass around Moglic dam and spillway

Picture

Picture

16

Dam site

Road Works

17

Road Works

Statkrafts presence in SEE

Enter into the Albanian

electricity market
- import power into Albania
- export power out of Albania
- transit power through the
Albanian grid

19

Whats happening in Balkan.

Albania
- WB/OST
- MEI New Energy Law

Transmission Lines
- Albania Kosovo
- Subsea cable Montenegro Italy
- Albania Macedonia

Power exchange Serbia ??

Coordination Auction Office

Montenegro

20

Development in Albania

New Energy Law

- Secondary legislation
- Market Design

Day Ahead Market

- Hourly prices required for;
- planning hydro generation
- optimize import and exports

21

More transparency
Reduced credit risk
Invoicing only against the exchange;
Automation and standardization
Comply with EU Target model
Facilitate price coupling w/other markets

Day Ahead
Market

Balancing
Mechanism

Market equilibrium
one day ahead
- auction trade -

Balancing
generation
and consumption
in realtime

THANK YOU
Agnar.Aas@statkraft.com
+355 68 909 8803

22

www.statkraft.com

Presentation: An overview of the mining sector

in Albania
Mehmet Hasalami, Policy and Development
Directorate of Mines, Ministry of Energy and
Industry

MINISTRY OF ENERGY AND

INDUSTRY

15 March 2015
TIRANA

Prepared from Mehmet HASALAMI

Mining activity in Albania

Restructuring

Reforming of mining industry towards the free market economy

to incite, support and encourage
the development and increment of of domestic production.

Mining right

Concession
The closure of non-efficient mines
Creating a legislative and administering framework
based on the market economy principles
Privatisation

Objectives for Developing of Mining Sector

MINING ACTIVITY

LEGISLATION

The first Mining Law of Albania is approved on 1994, and amended continuity.

New Mining Law, amended recently, made some changes:

New concept of territory planning (including the concept of mining strategy and
programming of mining activities by offering of Mining areas to investors and competition
process through a new transparent way for granting of mining rights)

Facilitating of the licensing procedures (concept of one stop shop) as well as the promotion
of mining areas on line through a digital map on GIS and Data Base of Mining Industry

Participation and benefits of local authorities and community

New provisions on Minerals promotion, Monitoring and supervision, Health and Safety in
mining activity and Monitoring of post mining activities-mining closure
5

MINING ACTIVITY

LEGISLATION

Addressing of environment and social issues

Increase of the institutions
Professionalism and Transparency (participation on EIT Initiative)
New concept of financial surety for environment rehabilitation, mine closure,

rehabilitation of the waste deposit area.

Financial surety for realization of the minimum working program for
prospecting exploration permits
Financial surety for realization of investment program calculated annually of 10
% of the investment value.
New concept for professional licensing process
New concepts for closure of abandoned mines, conservation, rehabilitation
6

MINING ACTIVITY

LEGISLATION

The new law FOR MINING SECTOR IN THE REPUBLIC OF ALBANIA is

composed from 10 chapters:

1. GENERAL PRINCIPLES ( scope, field, definitions)

2. MINING STRATEGIC PLANNING

3. MINING RIGHT CLASSIFICATION AND TYPES OF MINING PERMITS ( four groups of minerals three
types of permits)

4. PROCEDURES FOR GRANTING OF PERMITS, LICENSES AND AUTHORIZATIONS

5. GENERAL RIGHTS AND OBLIGATIONS OF HOLDERS OF MINING RIGHTS, ROYALTY

6. TRANSFER OF THE MINING RIGHTS FROM THE HOLDER OF MINING RIGHTS

7. SUPERVISION AND MONITORING OF MINING ACTIVITIES AND MINING CADASTRE

8. PENALTIES, SUSPENSION, TERMINATION OF THE MINING RIGHTS

9. MINING DATA AND CONFIDENTIALITY

10. CLOSING AND CONSERVATIONS OF MINES

The Study for the Master Plan for Promoting the Mining Industry in Albania.

Policy and action programs for the management of mining activities

Sustainable development of Albanian economy based on short-mid-long
terms objectives,
Maximum profit of Albanian citizens,
Re-evaluation of mining resources,
Territorial planning, land use strategy,
Transparency to the public , transparency on decision making,
Good governance, continuity of reforms,
Figh the poverty specially in rural areas,
Employment,
Improvement on economical and financial balance of the country by
development of exports,
Environment friendly
Participation of communities
Increase of revenues of the local authorities through percentage in royalty
and other taxes
Fight the coruption

OTHER

POLICY MEASURES
Promoting takeovers: programmes for creative industries, expand
microcredit schemes in rural and urban areas;
Improve business services: Establishment of SME portal, TNA for
business needs, training for entrepreneurs etc;
Increase institucional capacities in MEI : Increase Competitiveness
Policy Department, unit for inovation and technology transfere;

Main Minerals and their Reserves

Quantity 33 million ton

11

Main Minerals and their Reserves

Quantity Copper 24 million ton

Bauxite 16 million ton

Quantity
Iron nickel 160 million ton
Nickel silicate 103 million ton

12

Main Minerals and their Reserves

Quantity Coal 700 million ton

13

Minerals and Mining activity in Albania

14