Exploitation (The use) of gas in Albania for industrial use dates back to 1963, when the expansion of condensed gas to Bubullimë (Kallm) was put into operation. Later, in 1964, Divjaka natural gas reserves were set up, followed by finding and using other natural gas sources in: Frakull (1972), Finiq-Krane (1974), Ballaj (1983), Povelca (1987) and Delvin (1989).By 1990, natural gas was used for the chemical waste industry, the oil industry, electricity generation and a very small amount for the residential sector. Gas stocks have declined steadily since 1985, reaching the minimum level in the early 1990s, due to the lack of new discoveries and investments in existing resources.
Gas extraction and its management in Albania is made by a state owned company such as Albpetrol JSC
The total number of drilled gas wells is over 500, but currently the number of gas wells is reduced to about 20 wells. At present, natural gas production serves the oil industry. Natural gas has historically been an important element for supplying the Albanian energy market, but its contribution so far has been low, due to the minimum levels of production.
Gas reserves have been declining steadily since 1985, reaching the minimum level in the early 1990s, due to the lack of new discoveries and investments in existing resources.
Albania is the only European country that is not connected to international natural gas networks. The most optimal way for Albania to connect to the international gas network is that of the gas pipeline transit or "TAP" project, which will contribute to the diversification and security of Europe's gas supply, but also to the economic development of Albania.
The gas pipeline network is distributed throughout the western part of Albania and ends up in ORC in Ballsh. The gas network infrastructure in Albania has a greater extent than the oil infrastructure. Gas fields stretch from Durres to Delvin, thus creating an opportunity for consumers to connect to the grid. The limited gas infrastructure in some places is out of the operational state and major rehabilitation work is needed.
Albgaz JSC Administers about 500 km of gas pipelines built 40 years ago, with already outdated technology, where corrosion protection measures are minimal.
For 2017 the length of the pipelines is expected to be five-fold to achieve the objectives of the various projects as a result of agreements for the creation of a complete network.