STRATEGIC OBJECTIVES OF THE ALBANIAN GAS COMPANY (ALBGAZ) SH.A. FOR THE PERIOD 2017-2018

By the Decision of the Council of Ministers Nr. 848, date 07.12.2016"On the establishment of the natural gas company" Albgaz "JSC. And the determination of the public authority representing the state as a shareholder of Albpetrol JSC and Albgaz JSC has been prepared for the support and implementation of article 36, point 2 and 5, article 51, point 2 and 4, article 57, article 80, of Law No.102 / 2015, date 23.09.2016, "On the Natural Gas Sector" , As well as Article 4, of Law No.7926, date 20.4.1995, "On the transformation of state-owned enterprises into commercial companies", as amended.

In support of and implementation of VKM no. 848, dated 07.12.2016, on 06.01.2017 was registered the company "Albgaz" Sh.a. At the National Business Center.

In accordance with Article 36, point 2 and 5, as well as Article 80 of Law No.102 / 2015, dated 23.09.2016, "On the Natural Gas Sector", in the draft decision it is stipulated that the company "Albgaz "Sh.a will function as a combined operator performing the activity of the transmission system operator and distibution system operator of the natural gas.

"Albgaz" JSC during the 2017-2018 period it will be committed to achieving objectives and tasks in these main directions:

First: Activity in the period 2017-2018 for transport and distribution of natural gas through existing gas infrastructure

-It will manage (conduct, supervise) the activity of transport and distribution of natural gas, including contracts with customers for gas distribution (while the supplier will be Albpetrol JSC.).

-It will also be pursuing through the relevant directorate of the company, all the existing gas infrastructure assets that have been transferred to Albgaz JSC, taking the necessary actions and investments for the maintenance and further rehabilitation of this infrastructure.

-It will ensure cooperation with Albpetrol JSC. As well as with other hydrocarbon companies operating under the Hydrocarbon Agreements, such as the companies "Bankers Petroleum Albania" Ltd., SHELL Albania, etc.

Second: Activity for the period 2017 -2018 in natural gas transportation and distribution projects related to the development of the gas sector in Albania, including regional interconnection.

-In the technical activity of "Albgaz" Sh.a. (Related to the participation of the company directly or on behalf of the Ministry of Energy and Industry)Will be involved in natural gas transportation and distribution projects related to the development of the gas sector in Albania, or in regional and European interconnection projects, including the engagement of the company in bilateral or multilateral agreements alone or in coordination with the Ministry of Energy and Industry, as is the Treaty on the Establishment of the Energy Community.

-Engage in direct or indirect cooperation (also with the relevant entities of Montenegro) in the implementation of the Ionian Adriatic Pipeline (IAI) project.

-Engagement in direct or indirect cooperation (also with relevant entities of Kosovo) in the implementation of the project Albania-Kosovo Pipeline (ALKOGAP), where during 2017 will work to prepare the pre-feasibility study for this project. (A funding of Euro 0.3 million has been approved by WBIF).

-Engagement in direct or indirect cooperation (with TAP AG as well as within the project with SECO) in the realization of the Project of the Pipeline that will connect the TAP project with TEC in Vlora, starting during the preparation phase of the Feasibility Study. A 0.3 million euro funding from the Swiss Government (SECO) has been approved.

Third: Albgaz Sh.a. will be committed to ensuring institutional and legal cooperation in terms of strategic development with foreign companies and foreign institutions in the gas field, and will seek to realize the participation of these companies in various forms of cooperation, to develop concrete projects in the transport and distribution sector of natural gas related to the development of the gas sector in Albania or in the regional context.

Fourth: An important strategic objective of the company "Albgaz" Sh.a. will be membership and cooperation with regional gas organizations and associations

-Following the procedures for the membership of Albgaz Sh.a. In the European Association of Gas Transmission Operators (ENTSO-G),

-Engaging in activities under the Energy Community Treaty establishing the Energy Community, participating in the Gas Forum, in the Gas Group for security of supply, etc.

Fifth: Another important aspect of Albgaz Sh.a. Will be the establishment within a period of three months and the functioning of the Technical-Scientific Council of the company, (As an ad-hoc structure composed of technical experts who have qualifications and confirmed expertise in the field of gas and hydrocarbons as a whole), that will have for object

  • -Reviewing and evaluating the technical and scientific opinion by preparing the respective opinion on the programs, projects, studies and agreements in the field of gasification and its transmission, distribution, storage and LNG infrastructure, which are prepared by the directorates of Albgaz Sh.a. Or in cooperation with institutions and subjects of consultancy.

Sixth: As outlined in point 7 of VKM no. 848, date 07.12.2016, the company "Albgaz" JSC. In accordance with and respecting the procedures set forth in article 37 of Law no. 102/2015, date 23.09.2016, "On the Natural Gas Sector, shall apply immediately to the Energy Regulatory Entity for certification as transmission operator. Meanwhile, as well as according to the procedures set out in articles 22, 23 and 24 of Law no. 102/2015, dated 23.09.2016, "On the Natural Gas Sector" company "Albgaz" JSC. will apply for licensed equipment for transmission and distribution of natural gas.

Seventh: An important objective of the company "Albgaz" JSC. will be to guarantee the financing of the activity of the company, and specifically for the period 2017 - 2018.

-Referring to the definitions of point 8 of VKM no. 848, date 07.12.2016, Albgaz JSC., from its creation until December 31, 2017, will be financed through the funds that will be provided by the loan agreement, tied to Albpetrol Sh.a. but also / or from the funds it provides on the basis of agreements with local and international financial institutions and / or donors.