Albania Oil and Gas & Energy 2015 Summit

Presentation: The role of Southern Gas Corridor
for energy security of Europe
Ilkin Aslanov, Executive Assistant to SOCAR
President Advisor, SOCAR, Azerbaijan

MR. Ilkin Aslanov
Executive Assistant to SOCAR President
Advisor, SOCAR
State Oil Company of the
Republic of Azerbaijan
18 March, Tirana

“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

• 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 SOCAR’s investment portfolio
and geography of operations
• Diversification of consumer markets and
export transportation routes
• Contribution to the development of
Southern Energy Corridor
Azerbaijan’s Gas
Strategy:
Views and Perspectives

Azerbaijan’s Gas Production 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
Shah Deniz Field
5 bcm
2014
2004
30 bcm
x6

*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
Azerbaijan Gas Exports

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
Shahdeniz Stage 2
Gas Sales

• 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
Prospective Fields and Structures

Southern Gas Corridor
Projects
Trans
Anatolian
Pipeline
(TANAP)
Trans
Adriatic
Pipeline
(TAP)
South
Caucasus
Pipeline
expansion
(SCPx)
Shah
Deniz Full
Field
developme
nt (SD2)
• 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

Diversity and security of energy
supply for Europe
Shah Deniz
SCP
TANAP
TAP
Expansion of
Southern
Caucasus Pipeline
System (SCPx)
Trans Anatolian
Pipeline
(TANAP)
Trans Adriatic
Pipeline (TAP)
Shah Deniz 2
project
(«Upstream»)
 Proposed Southern Gas Corridor Pipelines

Southern Gas Corridor – Key
Information about Project Costs

 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(SCP)

 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.
South Caucasus Pipeline
Expansion (SPCX)

 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.
Project Details

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

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
 TANAP IGA and HGA
 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
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

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), BOTAŞ (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
been signed Supply Contracts Signed Axpo (Switzerland)
Hera (Italy)
Enel (Italy)
E.ON
Gas Natural (Germany)
GDF (Spain)
Shell (England/Netherlands)
Bulgargaz (Bulgaria)
DEPA (Greece)
10 bcm/a

Project Status
 A Memorandum of Understanding has been signed between
Azerbaijan and Turkey
 Gas Transportation Agreement has been signed between
BOTAŞ 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)
 Diameter: 48 inch (subsea– 36
inch)
 Project cost:≈ $5 billion USD
 Initial throughput capacity: 10
bcma (expandable to 20 bcma)
TANAP
TAP
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 EU’s 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 Europe’s
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
integration through
other planned pipelines
(IAP, WBR, IGB)
IAP: Ionic Adriatic Pipeline
IGB: Interconnector Greece-Bulgaria
WBR: Western Balkan Ring

Securing Supply for SEE region (2)
E.ON Ruhrgas
emergency supplies
during the Ukraine Gas
Crisis 2009
Switzerlan
d Rumania
Austria
Czech
Republic
Ital
y
German
y
Poland
Slowakia
Croatia
Hungary
Sloveni
a
Bulgaria
FYROM
Greece
Turkey
Bosnia-
Herzegovin
a
Potential additional
emergency supplies
via Reverse Flow on
TAP
Serbia
Monteneg
ro
Albani
a
TAP reverse flow significantly contributes to security of supply in
SEE region

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.
 Connection to Bulgaria
 Connection to
Ionian Adriatic Pipeline
FYROM
Albani
a
Turke
y
Bosnia-
Herzegovi
na
Bulgari
aMonteneg
ro
Ital
y
Serbi
a
Croati
a
Austri
a
Sloveni
a
Romani
a
Hungar
y
Greece
Budapes
t
Vienn
a
Belgrad
e
Buchare
st
Sofi
a
Skopje
Zagre
b
Ljubljana
Podgoric
a
Sarajevo
Tirana
Rome
Fier
Brindisi
Ploc
e
LN
G
Thessalonik
i
Komotin
i

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

 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
Background of mutual relations in the energy sector.

 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.
What does this Memorandum of Understanding envisages?

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.
Roadmap of actions

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 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.
THE GROUP

• 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

We take care of the environment on your behalf…
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)

• Quality
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.
• Innovation
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…
OUR PHILOSOPHY

 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
OVERVIEW

 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
MAIN SERVICES PROVIDED

WASTE MANAGEMENT
Type of hazardous waste for
management:
• Transformers, capacitors and other
equipment contaminated with PCB’s
• 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
• Environmental rehabilitation of industrial
sites
• Asbestos management
• Decontamination of transformers and
other electrical equipment contaminated
with PCB’s
• Tank cleaning and sludge treatment
services

REHABILITATION AND
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
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
• 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
• 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.

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.).
MANAGEMENT OF RADIOACTIVE
MATERIALS

Oil Spill Response Vessels
 Tanker Vessel AKTEA OSRV
 Multi Role Vessel AEGIS Ι
Oil Spill Response Services19

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.

AKTEA Vessels Fleet
Oil skimmer vessels
fully equipped for
antipollution operations
13 Vessels Fleet

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).
INTERNATIONAL PROJECTS

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 MANAGEMENT

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

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

Common Knowledge: Cuttings
Pit flooded with drilling fluid
CUTTINGS WASTE MANAGEMENT

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

• Correct Drilling Waste Management on location is essential to
reduce excess cuttings waste being generated.
• Extra equipment, manpower and time for reprocessing
cuttings waste
SIGNIFICANT IMPACT ON DRILLING BUDGET

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

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
o Through concession contracts, 30
hydropower plants, with total capacity
of 20 MW.
o 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 Kalivaç and Devoll), with
capacity 511 MW (HPP Kalivaç - 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
Kalivaç), 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.
o The approach of financial market on the
support of the investors and to the
capital market.
o Strengthening of the Regulatory
Authority activity on monitoring an
increasingly more liberalized electricity
market to the local and regional level.

o Perfecting of the electricity market
model, in accordance with the level of
liberalization.
o Consolidation of institutions which
monitor concession contracts.
o 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 Konçesioneve, Prokurimeve, Shpronësimeve dhe Privatizimit
MINISTRIA E ENERGJISË DHE INDUSTRISË
Adresa: Blvd Dëshmoret e Kombit, 1001 , Tiranë-Shqipëri
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 17-
18 March 2015 | Sheraton Tirana Hotel,
Tirana, Albania

Investment Opportunities Offered
by the Strengthening Integration of
EnC
T h e m a i n b u l l e t p o i n t s :
(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 pan-
European 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 Strategy for Energy
Union, 25 Feb 2015:
reaffirms effective
implementation of the
EU's acquis, and
incentivizing investments
in the energy sector.
 EC Political Guidelines
on European Energy
Union: an important
element on
strengthening the
Energy Community

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 19-
20 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
ID / TA
WBIF
Commissio
ning Year
PECI Electricity Generation Progress Monitoring Completed
Ongoing
Investment
Idea
Still in
paper
Inv. decision
taken
In
construction
No progress
01 AL EG038 2015 Hydro Power Plant Skavica Conceptual
02 AL EG001 2015–2020 Wind Park Dajc-Velipoje E-I assessment
ACERC elaboration data ECS Sept. 2014 regard the Western Balkans
Nr PCs Project
ID /
TA
WBIF
Commis
sioning
Year
PECI Electricity Infrastructure Progress Monitoring Completed
Ongoing
Investment
Idea
Still in
paper
Inv. decision
taken
In
construction 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*) Construction
Nr PCs Project
ID /
Fund
Commiss
ioning
Year
PECI Gas Infrastructure Progress Monitoring Completed
Ongoing
Investment
Idea
Still in
paper
Inv. decision
taken
In
construction No progress
01 AL-ME-
HR-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 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 Scope of the Acquis in 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

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

A Pan-European Single Energy Market
III. Interconnectors
between EU MSs and
CPs: Consider
regardless of whether
they are between MSs
& CPs
I. Activating of the Title IV:
Revise EU’s 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.

Better Enforcement & Dispute Settlement
II. Strengthening the
framework for enforcement
and dispute settlement:
including the creation of a
regional court of justice
versus using arbitration
tribunals
I. Encouraging Private
Enforcement: private
enforcement of the Treaty
before national courts
III. Conditionality of Financial Assistance:
A mandatory (non-binding) opinion of ECS
should be introduced by donors in their
procedures

Improving the Investment Climate
IV. Establish of
Complementary Projects:
Which could be credit-
enhanced through the ECREF
II. Investments-Friendly Area:
Reducing risks on energy
trade
I. Increase and Managing of Available Funding:
More funding in bilateral and multilateral
support, as well as from IFIs
III. An Energy Community Risk Enhancement
Facility: address breach of contract, retroactive
measures, discriminatory taxation, payment
default by public entities, etc

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

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 the refining sector

• With Crude oil
Producers
• With Gas
Producers
A Partnerships Approach
 Quality testing, Reference, Long-term Off-take, Gradual
growth, Flexibility (quality, storage, volume)
 Vlore terminal
 Long-term Contracts for Refining & Power Generation
 Development pipes

• With Oil Distributors
• With End-buyers
• With Logistics
• With Authorities
 Quality, Brand, Homogeneous and Constant, Respectful
of Environment and People
 Quality and Competitive Price to promote local industry
 Co-investment, Long-term commitment for lower
pricing
 Security of Supply, Investment in Infrastructures,
Responsible company for People, Environment and
Economy
A Partnerships Approach

Global dynamics in mid-distillates in Europe

World Oil Demand
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
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
OECD NON-OECD
source: IEA, kbpd

Emerging Markets, from power to driving

Growth in Passenger cars 2010-2035
Source: OPEC
Emerging Markets, from power to driving

Growth of Road Networks (source OPEC)
• Road Network in 2010 • Road Network in 2035

Europe % Diesel of Driving Fuels
45%
50%
55%
60%
65%
70%
75%

Europe Gasoil/Diesel Demand (‘ooo bpd)
1500
1700
1900
2100
2300
2500
2700
2900
3100
3300
3500
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
N.W.E Med
?

Europe Gasoil/Diesel Production (‘ooo bpd)
1500
1700
1900
2100
2300
2500
2700
2900
3100
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
N.W.E Med

Europe Gasoil/Diesel Net Imports (‘ooo bpd)
-400
-200
0
200
400
600
800
1000
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
N.W.E Med
US arbitrage

US exports of distillates (‘ooo bpd)
0
100
200
300
400
500
600
700
800
900
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
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
Oct-14
N.W.E MED STHAM

Alg/Egypt/Turkey Gasoil/Diesel demand(‘ooo bpd)
400
500
600
700
800
900
1000
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14

Iran/Iraq/Kuwait/Qatar/Saudi A./UAE
Gasoil/Diesel demand(‘ooo bpd)
800
1000
1200
1400
1600
1800
2000
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
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
Oct-14

Large Refining Capacity expansion East of Suez
(kbpd)
0
50
100
150
200
250
300
350
400
450
500
Saudi Jubail End
2013
China Sichuan
beg. 2014
China Quanzhou
mid 2014
Saudi Yanbu end
2014
UAE Ruwais end
2014
India Paradip
beg. 2015

Saudi A. Gasoil/Diesel exports(‘ooo bpd)
0
50
100
150
200
250
300
350
400
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

Asia net imports (‘000 bpd)
-800
-600
-400
-200
0
200
400
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
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
Oct-14
China India Korea

Global Petroleum dynamics
Confirm a role and opportunities
to Refineries in Albania
But increasing competition forces
modernization and better
infrastructures

Street “Papa Gjon Pali II”
ABA Business Center, 8 Floor
Tirana,Albania
Thank you for your attention

Presentation: What is the energy investment
outlook in Albania for 2020?
Entela Çipa, 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.

 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.
NEW POWER SECTOR LAW
Main objectives

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.

 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.
Metering

 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.
Supply

 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.
Market Provision

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 Vlorë 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 Moglicë, 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 Ersekë - 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.

 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

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)

Presentation: Extractive Industry Transparency
Initiative - EITI in Albania
Dorina Çinari, Director, Extractive Industries
Transparency Initiative (EITI) Albania

Albania Oil, Gas & Energy 2015 Summit
Tirana March 17-18 , 2015
THE
UNDERGROUND
Transparency on
Shared Wealth

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 country’s 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.

Through implementing the global EITI
transparency standard, countries ensure more
transparency of revenues from its oil, gas and
mineral resources
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.

• The is a global standard for the
governance of a country’s 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

$1,5Trillion USD disclosed
35
Countries have
produced reports

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.

Revenue
Collection
Productio
n Data
State
Owned
Enterprises
Sub-
Nationa
l
Revenue
Managemen
t
Allocation
of Rights
Social
Impac
t
From extraction to
development
How is value
captured?
Where do benefits
go?

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 anti-
corruption 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.
Governments

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 long-
term 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.
Companies

A country´s EITI Report informs the public of what happens with its
natural resources.
Benefit from Reliable and accessible information about their
country’s 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.
Citizens and Civil Society

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

1,081
1,144
1,240
1,301
1,335
- 200 400 600 800 1,000 1,200 1,400 1,600
2008
2009
2010
2011
2012
Total PBB ne miliarde Lek Kontributi ne % i industria nxjerrese (GDP)
5.6%
4.3%
3.1%
2%
2.4%
Contribution of Extractive
Industries towards GDP
2008-2012 in billion ALL

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 Legislative 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
EITI Studies Agenda

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.
Goal: Ensure that the poorest citizens can also reap
the benefits of the natural resources boom
Other complementary efforts to
improve revenue transparency?
This law shines a light on billions in payments
to governments from oil, gas and mining
companies.
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.

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

High representation periodic meetings
Exchange of comments, suggestions or
proposals via www.kek.al
Other forms of meetings, subcommittees, etc.
A Three Way Consultation Process:

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 GOVERNMENT’S 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.
Të dhënat për periudhën 2013-2025 janë projeksion bazuar mbi të dhënat aktuale.

1. Changing the electric energy sector in a profitable sector by
fulfilling its financial obligations towards the state’s 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 in compliance with
Roadmap 2030;
Vision of the Government

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 3-
rd 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 Rrogozhinë
2. Construction of 220 kV line Elbasan – Fier and 220/110 kV ESS Kuçovë
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 lower–Shkodra 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 385 385 m 119 MW 467 GWh 214 mil EU
Total 168 MW 672 GWh
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
Total 181 MW 694 GWh 337.8 mil EU
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
(without including the benefits of the
generation from the existing HPPs)

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 HPP’s

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
BThe 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.

This project comprises:
- The construction of the new 400
kV interconnection line, Elbasan-
Bitola, 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
.
400 kV interconnection line Elbasan- Bitola
(Macedonia)

A substantial „Regional Integrated Gasification - Initiative“ is the
possible interconection of Albania with regional gas market.
IAP
TAP
LNG
TERMINALS
IGI
WBR

Thanks for your
Attention!
Agim BREGASI
MINISTRY OF ENERGY AND INDUSTRY
Directory of Power Sector
Bulevardi “Deshmoret e Kombit”, Tiranë, Shqipëri
Mob: +355 66 40 56 186
agim.bregasi@energjia.gov.al | www.energjia.gov.al

Presentation: An overview of Albania’s 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
2

Statkraft’s production
Peru
163 MW
(+ project)
Chile
94 MW
Turkey
20 MW
(+ projects)
Nepal 23 MW
Philippines
149 MW
Brazil
86 MW
Panama
(project)
Zambia
6 MW
Norway
12 518 MW Sweden
1 315 MW
UK
273 MW
Laos 100 MW
Germany
2 692 MW
India
91 MW
Installed capacity
17 600 MW
Power production
56 TWh
97%
renewable
energy
3 600
employees
SN POWER/
AGUA IMARA
STATKRAFT
Albania
(project)
*
* 2013 figures. Includes: - Statkraft/SN Power’s share of installed capacity

Statkraft in Europe
4
Norway
The Netherlands
United Kingdom
Belgium
France
Sweden
Finland
Germany
TurkeyAlbania
Romania
Serbia
Bulgaria

Overview
5
256 MW
729 GWh
535 Mill.€

Time Schedule
BASE CASE PROJECT IMPLEMENTATION TIMESCHEDULE
Activity
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 - Moglicë
Construction Transmission Lines
Construction Banjë HPP
Construction Moglicë HPP
Construction Kokël HPP
2015 2016 2017 2018 201920142009 2010 2011 2012 2013
Current stage

Required by Albania law:
 Strategic Environmental Assessment
 Environmental and Social Screening
 Environment and Social Impact
Assessment (ESIA)
ESM Planning based on international best practice:
7
Recommended by International best practice:
 DHP Sustainability Policy
 ESIA Planning Report
 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

Existing Dam 2012
Grouting gallery
Core
Cofferdam
Support fill
(river gravel)
)
Filter

 Picture
16
Picture
Dam site
Road M15 – By-pass around Moglicë dam and spillway

Statkraft’s 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

What’s 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
- More transparency
- Reduced credit risk
- Invoicing only against the exchange;
- Automation and standardization
- Comply with EU Target model
- Facilitate price coupling w/other markets
21
one day ahead
- auction trade -
Day Ahead
Market
Market equilibrium
Balancing
generation
and consumption
in realtime
Balancing
Mechanism

www.statkraft.com
THANK YOU
Agnar.Aas@statkraft.com
+355 68 909 8803
22

Presentation: An overview of the mining sector
in Albania
Mehmet Hasalami, Policy and Development
Directorate of Mines, Ministry of Energy and
Industry

Prepared from Mehmet HASALAMI
MINISTRY OF ENERGY AND
INDUSTRY
15 March 2015
TIRANA

3
Privatisation
Creating a legislative and administering framework
based on the market economy principles
Mining right
Concession
Reforming of mining industry towards the free market economy
The closure of non-efficient mines
to incite, support and encourage
the development and increment of of domestic production.
Mining activity in Albania Restructuring

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

 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

• 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
7

The Study for the Master Plan for Promoting the Mining Industry in Albania. 8

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;

11
Main Minerals and their Reserves
Quantity 33 million ton

12
Quantity Copper 24 million ton
Bauxite 16 million ton
Quantity
Iron nickel 160 million ton
Nickel silicate 103 million ton

13
Quantity Coal 700 million ton

14
Minerals and Mining activity in Albania

Albania Oil and Gas & Energy 2015 Summit

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Albania Oil and Gas & Energy 2015 Summit

Similar to Albania Oil and Gas & Energy 2015 Summit (20)

More from Albania Energy Association

More from Albania Energy Association (20)

Recently uploaded

Recently uploaded (20)

Albania Oil and Gas & Energy 2015 Summit