Baku Energy Forum - Montenegro reveals volume of gas to be received via Ionian-Adriatic pipeline

Montenegro reveals volume of gas to be received via Ionian-Adriatic pipeline


Montenegro is expected to receive between 0.5 and 0.7 billion cubic meters of gas per annum via the Ionian-Adriatic Pipeline (IAP), Zarko Djuranovic, Director of Energy and Consulting Department at Montenegro Bonus company, told Trend Sept.7.

Currently, there is no gas supply in Montenegro, he said, adding that it is presumed that all of the expected future gas consumed in Montenegro will be supplied from IAP.

"According to the comprehensive Feasibility Study for Ionian-Adriatic Pipeline, developed by the COWI and IPF Consortium in 2014 (project funded by the WBIF), the total IAP supply to the region in 2020 will amount to around 1.2 bcm and it is expected to reach 6.8 bcm in 2040 in scenario gas, or 5.8 bcm in scenario coal. It is assessed that Montenegro will receive between 0.5 and 0.7 bcm per annum, depending on the scenario used," said Djuranovic.

He pointed out that the main activities in Montenegro related to the IAP implementation are the development of Preliminary Design of the Ionian Adriatic Gas Pipeline – Montenegro and Albania sections, with relevant Environmental and Social Impact Assessments and independent technical reviews (project funded by the Western Balkans Investment Framework), adoption of Special Purpose Spatial Plan for Coastal Region of Montenegro (with IAP route) and the development and adoption of secondary gas legislation.

"The IAP will create the preconditions for the development of the natural gas market of Montenegro and that is the fact recognized in the Energy Development Strategy of Montenegro until 2030 and other government’s strategic documents. Natural gas is considered a very important component in the Montenegrin energy mix in the future, and the development of gas infrastructure should be a significant contributor to Montenegrin economy in general," added Djuranovic.

IAP is a proposed natural gas pipeline in Southeastern Europe (SEE) that will stretch from Albania through Montenegro, and Bosnia and Herzegovina, to Split in Croatia. It will be connected with the Trans Adriatic Pipeline (TAP).

IAP will provide deliveries of Azerbaijani gas to several countries of South-Eastern Europe. The capacity of the pipeline will amount to five billion cubic meters of gas per year.

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).