As gas becomes Europe's main energy security weapon, the United States is pushing hard for new projects in the Western Balkans. From Albania to Bosnia and Herzegovina, the new network is taking shape. But Kosovo is missing from the new map being created.
In the past five years, Kosovo’s approach to gas has been more of a “pull and don’t break” approach than a determined policy. From a concrete project with American support, to its rejection in 2021, to the return of discussions about new options this year, the country is still without a clear direction.
At the Trans-Atlantic Gas Security Summit, held in February in Washington, Kosovo's acting Economy Minister, Artane Rizvanolli, expressed Kosovo's readiness to be supplied with natural gas from the United States, describing the cooperation as "crucial" for a secure energy sector.
For a country like Kosovo, where around 90 percent of electricity is still produced from coal, and only around 10 percent comes from renewable sources such as water, wind and sun, it is a fact that gas can serve as an alternative to break the deep dependence on a single source.
But, in recent weeks, when the US and American companies have signed billion-dollar deals with several Western Balkan countries - to expand energy influence in the region - Kosovo has not been part of this wave of investments.
Albania, Croatia, and Bosnia and Herzegovina have entered into important initiatives, including a major project to build a gas pipeline that aims to disconnect Sarajevo from Russian supplies.
For US Energy Secretary Chris Wright, this signifies a new era of cooperation with Central and Eastern Europe.
“These partnerships are based on our mutual support for an energy expansion agenda – and this is evidenced by the billions of dollars worth of deals that have been signed,” Wright wrote in X.
Although it has no clear role in these developments, Kosovo is not out of the United States' sights. The US Department of Energy's special envoy, Joshua Volz, tells Radio Free Europe that Kosovo's energy system is in urgent need of modernization - which creates great opportunities for American industry to invest.
However, he emphasizes that major projects will depend on Kosovo itself, namely improving the business and regulatory environment in the country.
"Steps must be taken to encourage private American investment and international financing to come to Kosovo. The U.S. Department of Commerce, the Treasury Department, and the State Department are working on this. If and when market dynamics change and the business environment becomes more attractive, the Department of Energy will stand ready to help mediate between American industry and industrial partners in Kosovo," says Volz.
Volz is optimistic and emphasizes that Kosovo's connection to the regional gas infrastructure is already part of ongoing discussions.
"Our goal is for American energy resources to reach all of our partners and allies who are interested in long-term energy cooperation with American industry and the United States," he says.
Radio Free Europe asked the Kosovo Ministry of Economy whether there is any concrete plan or deadline for connecting to the regional network, for the possibilities of building gas infrastructure, and for talks with American officials, but received no response even after a week of waiting.
Currently, Kosovo benefits from the US Government's Compact program, worth over 230 million euros, which focuses on clean energy and supply stability. As part of it, the country has already secured high-capacity batteries for energy storage.
The chargé d'affaires at the US Embassy in Pristina, Anu Prattipati, said at an event this week that this investment is designed precisely to address the unstable energy supply in Kosovo - a problem that has negatively affected businesses, families and competition for years.
“No progress happens in isolation. The United States supports Kosovo in these efforts, but success depends on the continued engagement of the Government of Kosovo, the private sector, financial institutions, and civil society,” Prattipati said.
Five years ago, Kosovo abandoned a gas infrastructure project funded by the US Millennium Challenge Corporation. At the time, Energy Minister Artane Rizvanolli said that “more information is needed to be sure that building gas infrastructure is the best option for the energy transition.”
"The pipeline will be built if it is in the interest of the citizens and the state of Kosovo and in accordance with the Kosovo Strategy. First, the Strategy is made, and then decisions are made on specific projects," said Rizvanolli at a session of the Assembly on November 18, 2021.
The Strategy that was developed for the years 2022-2031 envisaged the possibility for Kosovo to be connected to regional gas networks in the future, and for coal to be phased out by 2050 at the latest, to make room for other energy sources.
"(Co-)investment in natural gas-fired power plants, for the purpose of covering base load demand and/or system flexibility in Albania, but also in North Macedonia and Greece, will be considered with a view to implementation within the timeframe of this strategy," the document states.
Kosovo is landlocked – which makes it more difficult to build gas infrastructure without cooperation with neighboring countries. One option is to connect to planned infrastructure in Albania or Greece, notably through the TAP pipeline – which transports gas from Azerbaijan, through Greece and Albania, to Italy – or through the liquefied natural gas terminal in Vlora.
Burim Ejupi, director of the Institute for Development Policy – Indep in Pristina, says that Kosovo has not completely lost its way, but that it has fallen behind, due to the lack of a clear political stance. He says that, although gas is now close – with infrastructure in Albania and that in North Macedonia – the country continues to move without a clear direction.
"The easiest way to transition to energy is through gas, as it emits about two times less carbon dioxide during combustion. Also, a gas-fired power plant is put into operation very quickly and has a controlled production capacity. Kosovo also has problems with energy balancing, so a gas-fired power plant would be very welcome, especially when it is known that, in recent years, millions in fines have been paid for this reason," Ejupi tells Radio Free Europe's Expose program.
A study published by the Indep Institute in 2022 found that natural gas could become increasingly important for Kosovo in addressing the so-called "energy trilemma" – decarbonization, security of supply, and affordable energy.
That same year, a study funded by the European Investment Bank was published, which emphasized that the final sources of natural gas for Kosovo could include Russian gas, liquefied natural gas from Greece, as well as that from Croatia.
With changing geopolitical circumstances and new developments on the ground, Ejupi says that gas for Kosovo is no longer a technical issue, but one of political decision-making.
"In the former Yugoslavia, there was a route from Obiliq to Skopje and from Obiliq to Mitrovica. In Obiliq there was a heating plant, from where steam was sent to the Skopje Ironworks, but also to Trepca. That is, in terms of land infrastructure, Kosovo does not need expropriations, because they already exist," says Ejupi.
He adds that, according to some calculations and taking into account investments in TAP, the complete construction of gas infrastructure in Kosovo could be completed in 3 to 5 years, at a cost ranging from around 200 million to 400 million euros.
"We currently have three large industries in Kosovo. There is Feronikeli, which is out of operation, there is Trepça and Sharr-Cemi. They can change the operating system from electricity to gas," says Ejupi.
Brenda Shaffer, of the Atlantic Council’s Global Energy Center, says the main challenge, in general, is not pipelines or interconnectors, but securing a major source of gas. And for Kosovo, she says, that source already exists – for example, through the Southern Gas Corridor through Albania.
Treating this as a matter of politics and priorities, rather than simply technical, Shaffer says the US-backed initiative for gas interconnections in the Western Balkans represents a historic opportunity to diversify energy supplies and reduce pollution.
"If you're not energy secure, you can't be secure as a country. There's no national security without energy security – you can't defend yourself, you can't build weapons industries… That's always been the U.S. approach: help allies and partners become energy secure, because if your allies are secure, then you're secure," Shaffer tells Exposé.
But, like any energy source, gas is not seen in just one direction. It brings benefits, but also dilemmas and costs.
Anne-Sophie Corbeau, from the Paris-based Center for Global Energy Policy, says Kosovo should not necessarily orient itself towards gas. According to her, switching from coal to gas is not an automatic solution, as the risk of market fluctuations and the possibility of replacing one dependency with another, rather than true energy diversification, must be weighed.
"What I see is that the whole region is moving from a dependence that was previously on Russian gas to another dependence that is mainly related to American liquefied natural gas. Depending on this gas is fine, because you can use different sources of supply. But if everything comes from just one country, even though it is expected to become a very large energy exporter in the future, would you want to be dependent on just one country?" Corbeau tells Expose.
What is certain, according to senior US Department of Energy official Volz, is that countries that choose to cooperate with the US on energy security and diversification can expect increased foreign investment, as the American presence in the energy sector is seen as a factor of stability and reliability.
In this context, gasification could be exactly the impetus Kosovo needs to overcome energy insecurity and become more attractive for investment. /REL
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