February 4 (SeeNews) - Croatian gas transmission system operator Plinacro estimates that the construction of Ionian-Adriatic Pipeline (IAP) intended to bring Azeri gas to four countries in Southeast Europe will need investment of some 600 million euro ($688 million), local media reported.
Plinacro drafted a proposal to set up a Split-based project company together with three peers from the region: Montenegro's Bonus, Albania's Albgaz and Bosnia's BH-Gas, Jutarnji List daily reported on Thursday.
In 2019, the four gas transmission system operators agreed the incorporation of a joint venture for the construction of the pipeline, in which they will hold equal stakes.
The IAP is planned to carry natural gas from Albania's Fier via Montenegro and Bosnia to Split in Croatia. The 520km-long pipeline would be bi-directional and its annual capacity would be 5 billion cubic metres.
According to Plinacro, the IAP project is developing according to plan. Croatia has already issued construction permits for some of the sections of the future pipeline, while Albania and Montenegro have prepared concept projects for sections on their territories.
Croatia has already used 3.5 million euro from EU funds to prepare the project, Jutarnji List reported. Non-EU members Montenegro and Bosnia have been allocated a total of 4.2 million euro from EU funds for the project.
In Fier, IAP would connect to the Trans Adriatic Pipeline (TAP) built to transport natural gas from the Shah Deniz II field in Azerbaijan to Europe. The first deliveries of Azeri gas to Italy via TAP were carried out last year.
($=0.872 euro)