An important energy agreement is signed in Dubrovnik.
Croatian Economy Minister Tomislav Panenić signed on Friday, together with his counterparts from Albania, Montenegro and Bosnia and Herzegovina, as well as with representatives of SOCAR from Azerbaijan, the memorandum of understanding on the construction of the Ionian-Adriatic Gas Pipeline (IAP), reports seebiz.eu on August 27, 2016.
After the signing, Panenić said that the construction of the IAP would ensure gas supply for South Eastern Europe. “We have confirmed our common initiative for the development of the Ionian-Adriatic Gas Pipeline as a route to ensure gas supply in these markets. We hope that the continuation of cooperation in the future will result with IAP being an important link between north and south, and that it will be a way towards the full liberalization of the gas market in Europe”, said Panenić.
He added that it was in everyone’s interest that gas from the IAP reaches not only these markets, but also the rest of South Eastern Europe. “We hope that would bring us a lower cost of gas transport and greater ability to access the gas”, said the Minister.
Montenegrin Economy Minister Vladimir Kavarić pointed out that the countries were partners rather than competitors. “We must concentrate on very practical solutions. We are partners in the implementation of this very important project”, he said.
Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina Mirko Šarović said that their main demand was for the IAP to go through the territory of Bosnia and Herzegovina, although he could not say whether the pipeline would go through the Neum corridor or not. “Bosnia and Herzegovina supports this regional project and approach. We want a part of the route to pass through Bosnia and Herzegovina. That was our basic requirement that we have presented at this panel. We hope that the route will go through the Neum corridor”, said Šarović.
Albanian Deputy Minister of Energy and Industry Ilir Bejtja said that the meeting in Dubrovnik reiterated the importance of security of gas supply. “This project will stabilize the supply because there will be a diversification of sources”, said Bejtja.
The IAP project involves a pipeline that would link Croatian gas transmission system with the Trans Adriatic Pipeline (TAP) project through Montenegro and Albania. TAP should transport gas from Azerbaijan to Greece, Albania and Italy. The intention is for IAP and TAP projects to be developed and constructed at the same time.
The total planned length of the IAP pipeline from Split in Croatia to Feri in Albania is 516 kilometres, with a capacity of five billion cubic meters a year. Croatian part of the IAP is 250 kilometres long, and the estimated value of the investment is around 265 million euros.