Blog – Full Width | AEA-Albania Energy Association

August 20, 2015

by AEA

Operators planning more than 6,500 miles of offshore pipelines through 2019

Operators and developers are studying, planning, and building just over 6,577 mi (10,582 km) of oil and gas pipelines to bring these supplies from offshore fields to onshore markets. The total reflects a decrease from last year’s offshore pipeline construction survey, which showed a total of 7,057 mi (11,355 km). This year’s total represents a 6.8% decrease over last year.

The decrease is largely driven by the removal of the long-planned (and long-delayed) White Stream project from the survey, and the cancellation of the South Stream project in the Black Sea. The White Stream project, first presented by Ukrainian officials in 2005, had called for 635 mi (1,021 km) of 20, 24 and 42-in. pipe to move natural gas from Georgia to Ukraine and Romania via the Black Sea. The lack of progress on this project for many years led to its removal from the survey.

The cancellation of the South Stream pipeline project also decreased the survey numbers. The project was dropped by Russia’s Gazprom last December following numerous obstacles placed on the project by Bulgaria and the EU; the Crimean crisis; and the imposition of western sanctions on Russia. South Stream had called for four 578-mi (930-km) pipelines to move natural gas from Russia to Europe via the Black Sea.

That same December, officials from Gazprom and Turkey’s Botas Petroleum Pipeline Corp. signed a memorandum of understanding to construct an offshore gas pipeline across the Black Sea to Turkey. The Turkish Stream system, which calls for four 565-mi offshore pipelines, will now replace the South Stream pipeline project. Thus the shift from South Stream to Turkish Stream also led to another (albeit small) decrease in the survey numbers.

In January, Gazprom held talks with the Turkish Ministry of Energy and Natural Resources on the proposed pipeline. Gazprom will submit a notice requesting execution of front-end engineering and design operations for the new Turkish offshore section. It will be solely responsible for construction of the offshore section, while the Turkish gas transportation facilities will be built jointly. Current plans call for the first string of Turkish stream to come online in December 2016.

Even with all these changing project plans in the Black Sea, Europe remains the leader with offshore pipelines under consideration, with some 3,549 mi being built and planned.

Development of the Trans Adriatic Pipeline (TAP) continues to make slow but steady progress. In March, developers launched two prequalification contracts for construction of the 65-mi (105-km) offshore pipeline section under the Adriatic Sea. The first prequalification comprises engineering, procurement, construction, and installation (EPCI) for the offshore section of the 36-in. pipeline between the coastlines of Albania and southern Italy. The EPCI scope of work includes associated landfall civil works at the landfalls in both Albania and Italy, as well as survey, seabed, and pre-commissioning activities. The second prequalification process is for supply of offshore line pipes and coating. Following the selection stage, TAP is expected to issue the related invitations to tender for offshore construction this summer.

In the Norwegian Sea, pipelay has commenced on the Polarled gas pipeline, the first pipeline to extend Norway’s gas infrastructure into the Arctic Circle. The Allseas pipelay vessel Solitaire began pipelay activities in March, and is working toward a late August completion. The 298-mi, 36-in. pipeline will transport gas from the Aasta Hansteen field in the Norwegian Sea to the terminal at Nyhamna in western Norway. Laying will extend to water depths of up to 1,265 m (4,150 ft), a record for a pipeline of this diameter, Statoil claims.

The Middle East comes in second in the survey with 1,405 mi being built and planned. In the Persian Gulf, Pars Oil and Gas Co. (POGC) has started subsea pipelay for phases 20 and 21 of the South Pars gas field in the Persian Gulf. The 65-mi (105-km) long pipelines will deliver sour gas to the onshore refining facilities in Assaluyeh in southern Iran. To date, some 25 mi (40 km) of Phase 21’s pipes have been laid. Once pipelay has finished, POGC will install the new platforms for the two phases.

The South Pacific comes in third in this year’s survey with 853 mi of pipe being planned and built. Most notable here is the 552-mi (889-km), 42-in. gas export pipeline that will form part of the Ichthys LNG project offshore Australia. Pipelay has been under way for months on this project, with the Saipem vessel Castorone undertaking the 446 mi of pipelay called for in the deepwater portion of this project. Saipem’s SEMAC-1 has completed the 102-mi (164-km) shallow-water portion.Deepwater pipelay is scheduled for completion late this year.

South America comes in fourth in the survey with some 515 mi of pipelines planned for construction offshore Brazil. Saipem has won a number of EPCI contracts for this work, but, according to reports, the ongoing Petrobras scandal has resulted in late payments to Saipem and other contractors, and the delay of these projects seems likely.

The US comes in fifth in the survey with almost 165 mi of pipe planned for construction over the next few years. Perhaps the most notable of these is Shell’s recently-announced Mattox pipeline. It calls for a 90-mi, 24-in. pipeline to transport crude oil from the Appomattox platform to an existing offshore structure in the South Pass area. No completion date has been announced.

August 20, 2015

by AEA

New Onshore Oil & Gas Blocks in Albania, 15th October – Bidding Deadline

Albania’s Government Officials from the Ministry of Energy & Industry of Albania and AKBN will join IRN’s 4th Balkans Oil & Gas Summit to share more information on these rounds and other upcoming developments.

London, UK (PRWEB UK) 19 August 2015

The Ministry of Energy & Industry of Albania, recently announced that the oil and gas exploration bidding round deadline is 15th October for onshore blocks Panaja, C and 5 (map is availablehere), and is already in negotiations with the oil companies that submitted offers for onshore Blocks 4‎ and Dumrea.

Amongst experts to speak about Albania’s hydrocarbons industry will be:

Dorian Ducka, Deputy Minister of Energy and Industry, Albania
Dritan Spahiu, Director of Policies and Development of Hydrocarbons, Ministry of Energy and Industry, Albania
Dael Dervishi, Executive Director, National Agency of Natural Resources (AKBN), Albania
Dorina Cinari, Director, Extractive Industries Transparency Initiative (EITI), Albania
David French, CEO, Bankers Petroleum

The Summit will be held at the Sheraton Dubrovnik Riviera Hotel in Croatia on 23-25th September and will be attended by senior executives from oil and gas companies as well as energy Government Officials from all Balkans countries. A workshop day will also follow the Summit, with two workshops focusing on Adriatic and Black Sea prospects.

Highlights of last year’s Summit can be viewed at the official YouTube Channel of the organiser.

More information about the Summit is available on the website: http://www.balkanssummit.com and released bimonthly in the Summit’s newsletter to which someone can subscribe here.

August 19, 2015

by AEA

We Have Already Consumed a Year’s Supply of the Planet’s Resources in Less Than 8 Months

In less than eight months, humanity has used up nature’s budget for the entire year, with carbon sequestration making up more than half of the demand on nature, according to data from Global Footprint Network, an international sustainability think tank with offices in North America, Europe and Asia.

Global Footprint Network tracks humanity’s demand on the planet (Ecological Footprint) against nature’s ability to provide for this demand (biocapacity). Earth Overshoot Day marks the date when humanity’s annual demand on nature exceeds what Earth can regenerate in that year. Earth Overshoot Day has moved from early October in 2000 to Aug. 13 this year.

The costs of this ecological overspending are becoming more evident by the day, in the form of deforestation,drought, fresh-water scarcity, soil erosion, biodiversity loss and the buildup of carbon dioxide in the atmosphere. The latter will significantly amplify the former, if current climate models are correct. Consequently, government decision-makers who factor these growing constraints in their policy making will stand a significantly better chance to set their nation’s long-term economic performance on a favorable track.

“Humanity’s carbon footprint alone more than doubled since the early 1970s, when the world went into ecological overshoot. It remains the fastest growing component of the widening gap between the Ecological Footprint and the planet’s biocapacity,” said Mathis Wackernagel, president of Global Footprint Network and the co-creator of the Ecological Footprint resource accounting metric.

“The global agreement to phase out fossil fuels that is being discussed around the world ahead of the Climate Summit in Paris would significantly help curb the Ecological Footprint’s consistent growth and eventually shrink the Footprint.”

The carbon footprint is inextricably linked to the other components of the Ecological Footprint—cropland, grazing land, forests and productive land built over with buildings and roads. All these demands compete for space. As more is being demanded for food and timber products, fewer productive areas are available to absorb carbon from fossil fuel. This means carbon emissions accumulate in the atmosphere rather than being fully absorbed.

A Second Chance

The climate agreement expected at the United Nations Conference of Parties (COP) 21 this December will focus on maintaining global warming within the 2-degrees-Celsius range over pre-Industrial Revolution levels. This shared goal will require nations to implement policies to completely phase out fossil fuels by 2070, per the recommendations of the U.N.’s Intergovernmental Panel on Climate Change (IPCC), directly impacting the Ecological Footprints of nations.

Assuming global carbon emissions are reduced by at least 30 percent below today’s levels by 2030, in keeping with the IPCC’s suggested scenario, Earth Overshoot Day could be moved back on the calendar to September 16, 2030 (assuming the rest of the Footprint would continue to expand at the current rate), according to Global Footprint Network.

This is not impossible. In fact, Denmark has cut its emissions over the last two decades at this rate: Since the 1990s, it reduced its carbon emissions by 33 percent. Had the world done the same (while not changing the rest of the Footprint), Earth Overshoot Day would be on Oct. 3 this year.

This is not to say that Denmark has already reached a sustainable Ecological Footprint. Humanity would require the resources of nearly 3 planets if everyone lived like the Danes, which would move Earth Overshoot Day to May 8.

Business as usual

By contrast, business as usual would mean using the resources equivalent to two planets by 2030, with Earth Overshoot Day moving up on the calendar to the end of June.

This projection assumes that biocapacity, population growth and consumption trends remain on their current trajectories. However, it is not clear whether a sustained level of overuse is possible without significantly damaging long-term biocapacity, with consequent impacts on consumption and population growth.

Tipping Point

“We are encouraged by the recent developments on the front line of renewable energy, which have been accelerating worldwide, and by the increasing awareness of the finance industry that a low-carbon economy is the way of the future,” said Wackernagel. “Going forward, we cannot stress enough the vital importance of reducing the carbon footprint, as nations are slated to commit to in Paris. It is not just good for the world, but increasingly becoming an economic necessity for each nation. We all know that the climate depends on it, but that is not the full story: Sustainability requires that everyone live well, within the means of one planet. This can only be achieved by keeping our Ecological Footprint within our planet’s resource budget.”

Source: Global Footprint Network & Samantha Page / Climate Progress

August 18, 2015

by AEA

TAP’s Managing Director: No proposal was put forward on Iran’s joining this project

The project has always been open to all companies which bring strategic value to it.

Baku. Vusal Nabiyev – APA-Economics. No discussion was conducted on Iran’s joining to Trans Adriatic Pipeline (TAP) and no proposal was put forward in this regard.

TAP’s Managing Director Ian Bradshaw told the aforesaid, APA reports quoting Anadolu agency. According to him, this project, which is part of the Southern Gas Corridor, is of strategic importance for the European market. TAP’s Managing Director said that the project offers new natural gas reserves to the region and thus increases energy security

“The project plans to deliver 10 billion cubic metres of gas per year to Europe, and possibly double that in the long-term future. Therefore, additional compressor modules and stations will be built. Moreover, the project will ensure gas transport in the opposite direction. Thus, these opportunities will be evaluated in case of excessive increase in urgent need and demand. In particular, there are many countries in South-East European region which will be able to benefit from the Southern Gas Corridor and TAP”, I.Bradshaw stressed.

Ian Bradshaw noted that the project would be completed in Italy, connecting pipelines offer many opportunities in gas transmission to Switzerland, Austria, France, Germany, Belgium and the UK and he said that Shahdeniz-2 gas would play an important role in supplying Bulgaria and Greece. Bradshaw also touched on the issue of transporting Iranian gas to Europe via TAP:

“TAP envisages only transportation of Azerbaijani gas to Italy through Greece and Albania. TAP is not competing with other gas pipeline projects in the region. We didn’t have any contact with Iran or propose the country to join the project. TAP is acting in accordance with EU legislation and related sanctions. Thus, the project has always been open to all companies that could bring strategic value to it,” he said.

August 17, 2015

by AEA

TAP vital to European energy security

The Trans-Adriatic Pipeline project, which envisages the transportation of gas from the second stage of development of Azerbaijan’s giant Shah Deniz gas condensate field in the Caspian Sea to the European Union countries, has already ensured its strategic role in the EU’s energy security.

Recently, the TAP project, which is the western part of the Southern Gas Corridor that goes from the Greek/Turkish border to Italy through Albania, has been included in the European Commission’s list of 33 priority energy security Projects of Common Interest.

The EC, in a positive decision to grant exemption to the pipeline from third party access, highlighted the “overall positive impact for the EU of this investment as it is responding directly to the Security of Supply objective of diversification of gas sources, routes and counterparties”.

Also, the European Investment Bank reported that it is considering providing a 2 billion euro loan to the TAP project, pending approval from the Board of Directors of the bank.

All of these facts show EU desires for the implementation of TAP. As the pipeline’s fame increases by the day, countries show great interest in acquiring shares in the project.

In July, a source in the Turkish government told Trend that Turkey intends to acquire shares in the TAP project. The source said that the acquisition of a stake in TAP is a historic opportunity for Turkey, and Ankara is not going to miss it. Currently the issue is being considered, according to the source.

TAP is meant to transport gas from the Caspian region via Greece, Albania, and the Adriatic Sea to southern Italy and further to Western Europe. The pipeline’s total length is about 870 kilometers.

The construction of the pipeline is scheduled to start on May 16, 2016. TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

The construction of TAP will not only provide European countries with Azerbaijani gas, but also pave the way for establishing a significant gas pipeline and infrastructure network in the region.

Shares of TAP are held by BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent), and Axpo (5 percent).

By Aynur Karimova

August 4, 2015

by AEA

Albania picks bids by Shell, Delek unit for oil exploration

Albania has picked a venture led by Royal Dutch Shell and a company owned by Israeli’s Delek Group to carry out onshore oil exploration projects, subject to final contract agreements, an official told Reuters on Monday.

Shell Upstream Albania BV and Canada’s Petromanas will now negotiate with Albania’s National Resources Agency to get the final go-ahead to explore in sector four of the country, southeast of their current drilling site at Shpirag.

Navitas Petroleum, controlled by Israeli’s Delek, made the winning bid to explore the area of Dumre in central Albania.

The two successful bids followed more than two years of preparations by Albania to auction off more blocks, after it postponed the auctions of some onshore blocks because companies required more time.

The auction of offshore blocks was also delayed, because of Albania’s dispute with Greece over the division of their continental shelf in the Ionian Sea.

Promising initial results from a well in Shpirag by the Shell-Petromanas partnership has increased Shell’s interest in Albania and drawn international interest, despite low oil prices and the failure of previous exploration attempts in the country following the toppling of communism in 1991.

Reuters