Montenegro eyes EUR 30mn annually from future gas pipeline linked to Azerbaijan’s Shah Deniz

By bne IntelliNews July 3, 2013

Montenegro estimates it could earn up to EUR 30mn annually in transit fees from a future regional gas pipeline that will be linked to the Trans Adriatic Pipeline (TAP) – the route, which was selected to bring natural gas from Azerbaijan’s Shah Deniz to Europe, state broadcaster RTCG reported, quoting an economy ministry official.

TAP is designed to transport gas from Azerbaijan via Greece and Albania and across the Adriatic Sea to Italy and Western Europe. Last month, the Shah Deniz consortium, which develops the largest natural gas field in Azerbaijan, selected TAP as a preferred route instead of Nabucco West for transporting the gas deliveries.

Vladan Dubljevic, deputy economy minister in Montenegro, said that in order to connect it with the rest of Southeast Europe, one leg of TAP will stretch from Albania through Montenegro and Bosnia to Croatia.

“Now we already know we will be part of this project, which will certainly be implemented,” Dubljevic told RTCG on July 2. The final signing of the deal, connected with the planned investment, is expected at the end of the year.

The total length of the leg will be 516 km as 60-70 km will pass through Montenegro. The construction of the Montenegrin section will cost EUR 70-80mn and most likely some 70-80% of the funding will be provided by European funds since the EU has already welcomed the pipeline project as it is an alternative to the Russian gas routes.

For the remaining 30-20%, or EUR 15-20mn, Podgorica will have to find an investor but Dubljevic expect the interest will be significant considering the annual revenue of some EUR 20-30mn. The state interest is that the transport activities remain in its hands – it is therefore expected that state-controlled Montenegro Bonus will be in charge of the gas transfer.

At present, there are two options for the route through the country – the first one is under the Skadar Lake, along the Adriatic coast and under the sea to Croatia, while the second one enters inland to Podgorica and Cetinje and then again goes under the sea to Croatia.  

The economy ministry certainly prefers the second option even though it is 10km longer as it will serve better to the existing and future industrial businesses and could provide cheap to major companies like KAP’s alumina plant and steel mill Zeljezara Niksic.

Furthermore, the pipeline will boost other activities linked to creating local gas distributors, building gas networks and gasification of towns. The planned gas consumption in the country is seen at 600 million cubic metres annually.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

CEZ set to place Czech nuclear assets in new unit

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17. The move raises speculation that the company is ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at