The giant gas project impacting Albin Kurti to US

The giant gas project impacting Albin Kurti to US

The American gas project has become a serious problem between the Government of Kosovo led by Albin Kurti and the United States of America. The newspaper Infocus has learned that the executive has not yet given final answers to President Joe Biden's administration to end Russia's monopoly on the gas market and open [...]

The newspaper Infocus has learned that the executive has not yet given final answers to President Joe Biden's administration to end Russia's monopoly on the gas market and the opening door to this energy source from other countries, including liquid natural gas, LNG, from the United States.

Thus, construction of the LNG Power Plant (Gas Nature), which dates from the 2020 agreement between the former Kosovo Prime Minister, Avdullah Hoti and chief executive of the American Financial Corporation for International Development (DFC), Adam Baehler, will likely fail along with all support for natural gas infrastructure.

The Kosovo government has decided to remain silent over the issue, while business community representatives present at the moment of signing the agreement see the situation very seriously.

For nearly a week, the prime minister's office has not provided answers to the Infocus Journal about the obligations they have in implementing projects agreed on with the US Financial Corporation for International Development under the Washington Agreement.

Meanwhile, Kosovo Economic Ode Chairman Berat Rukiqi says projects deriving from this agreement are important for the country and expect from institutions to support them.

According to him, the gas project is a strategic project and should not be overlooked.

However, it does not appear to have been taken with such seriousness by the government cabinet as well.

Former Kosovo Deputy Prime Minister Haki Abazi last week has issued a television debate on Kanal 10, when asked about the position facing the US gas project.

According to him, there is no final decision and they are still considering the possibilities.

The strategic question is should Kosovo invest 3 billion euros to build the non-existing gas distribution infrastructure in Kosovo, for the use of the resulting natural gas”, Abazi has said.

Meanwhile, according to him, the geopolitical issue is whether the gas should come through Skopje or through TAP from Albania that I can build a thermal power plant in Kukes.

But there is still no answer for any alternative.

Washington's agreement stipulates that the American Finance Corporation for International Development (DFC) will be a financial service for financing infrastructure projects, but also for additional bilateral projects in Kosovo and Serbia, such as the terminal and gas pipeline.

In addition, the United States of America has declared the energy sector a priority, and in Kosovo it has already approved 200m euros through MCC funds for the sector.

Region Prepared for American Gas

As the Kosovo government continues to have no stance on the gas project, the countries of the region have signed the first agreements.

On October 3rd of last year, a very important development in Albania reportedly highlighted a clear American regional effort to support the development of the energy sector in the region, aimed at diversification of energy resources.

Prime Minister Edi Rama signed in Tirana a memorandum of economic co-operation with US Undersecretary for Economic Development, Energy and Environment Keith Krach and said it was about an economic co-operation agreement between the US and Albania.

The “The memorandum we signed today for economic co-operation will actually significantly affect the opening of a new chapter for direct investments not only American but also foreign investments in Albania. It will increase Albanian exports and embark on the final road to realisation the construction of Skavica's HEC. Which turns Albania from a country rich in energy resources, but dependent on the weather, to a sovereign country in terms of energy production”, Rama said.

Parales with Tirana the day before, Assistant Secretary of State for Energy and Source in the United States Francis R. Fanon, had spoken yes to the energy market with Northern Macedonia Prime Minister Zoran Zaev, warning the energy link between Greece and Northern Macedonia of supplying the country with natural gas.

Americans demand the creation of a stable energy market among countries in the region and will support northern Macedonia to become a regional actor in the field of energy.

The energy map includes the interconector connecting Greece and Bulgaria, and will be a gas carrier through Bulgaria and then through northern Macedonia.

Northern Macedonia will be included in the construction of the liquefied natural gas terminal near the Greek town of Alexandropoulos. Macedonian Prime Minister Zoran Zaev takes energy priority and promises concrete measures for links to energy resources both outside of state limits to serve both as a step towards gas distribution and other countries in the region.

“With US support, as our strategic partner and ally in NATO, North Macedonia in the coming period will initiate some projects that will be important to the country and the region. It is about the country's involvement in the construction of the liquid natural gas terminal near Alexandropoulos, a project that creates possibilities for permanent and sustainable gas supplies in our country, which will become a point from which gas will be distributed in the region and countries that will show interest” said Zaev.

About 55m euros is the cost of connecting northern Macedonia with the pipeline in Alexandropoulos, out of which 13m euros are provided by European funds.

Serbia is also interested in gas, this time for liquid gas.

The Serbian daily Danas reported extensively on what it calls the 8th point of Washington's agreement between Kosovo and Serbia.

“Although shorter, the 8th point of the Washington-economic normalisation agreement between Serbia and Kosovo could be the most explosive. Because the gas is leaking. Liquefied natural gas, LNG.”

The two sides will diversify their power supply”, says at the point that has already attracted public attention along with construction of highways and railways from Belgrade to Pristina and the Albanian port of the Adriatic Sea.

This, following Washington's agreement, I has paved the way for Albania's port of Durres to gain the status of a central point of economic relations in southern Europe.

Although not clearly mentioned in the Agreement, the port of Durres has been given a key role.

Modernisation of this port, as the final point of Pan-European Corridor 8, began several years ago with financial support from the BERZH, EIB and the EU.

Porto Romano has been mentioned as a new terminal where liquid American gas will be fired and regenified, and from there transported to markets of Albania, Greece, Bulgaria, North Macedonia, Kosovo, Serbia and Bosnia and Herzegovina through future gas pipelines, but also via railway.

In addition to linking gas to Greece and Montenegro, a Albania-Kosovo gas pipeline, measuring 260km long, whose construction will cost around 210m euros, and in the future it is scheduled to extend until Nis and is used to supply other countries in the region. /Gazza Infocus

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