Adriatic-Ionian gas pipeline, of 516 kilometers in length, from Fier to Croatia, will be built by "Socar" Azeri company.
The memorandum between Albania, Croatia, Montenegro and Bosnia and Herzegovina was signed during the Croatia Forum, held recently, said a statement on the TAP official website.
The primary objective of this pipeline is the annual transport of 5 billion cubic meters of gas from Azerbaijan to South-East Europe countries.
The memorandum of cooperation was signed by the four countries with "Socar" Azeri Gas Company, including Albania by Deputy Minister of Energy and Industry, Ilir Bejtja.
This project aims to connect the trans-Adriatic pipeline with central European gas network. The preliminary agreement between Albania, Croatia and Montenegro was achieved in 2007. The project aims to build an extensive gas network, from Fier (central Albania) to Split, Croatia, of a total cost of Euro 610 million.
250 kilometres of the pipeline will pass through Croatia, while 167 kilometers will be built in Albania and 94 in Montenegro. Bosnia and Herzegovina will be included only via its Adriatic port.
Ian Bradshaw, Managing Director of TAP, said: "The MoU enhances energy cooperation across South East Europe and is an important step towards energy security and diversification in the region".
Bradshaw assured that "TAP remains committed to facilitating connections to key gas infrastructure in the region, including the Ionian Adriatic Pipeline and the Interconnector Greece-Bulgaria".
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The 878 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.