Second Environmental Performance Review of Albania

Chapter 9: Energy and environment131environmental and social impacts of the project, theenvironmental management plan provides mitigation,monitoring and institutional measures to be takenduring the construction and operation of thegeneration facility to eliminate, offset or reduceadverse environmental as well as social impacts, andset out the actions needed to implement thesemeasures.Main issues concerning the impact of thefossil fuels industries.Although Albania produces a limited amount offossil fuels, the production of coal, gas and oil cancause severe damage to the environment. Worldwidepractice demonstrates that all oil and gas industryactivities have environmental effects: geological andgeophysical surveys, drilling and productionactivities, accidental oil spills, decommissioning ofinstallations, gas and oil transportation, and gas andoil processing. These activities have anenvironmental impact on the air, surface andgroundwater, soil, wildlife and populations, andshould be carefully examined.Detailed data on sources, types and volumes ofpollution and waste discharges during oil and gasactivities, which would allow the Government todevelop the necessary preventive measures, arelacking in Albania. Since oil and natural gasactivities are performed mainly by internationalcompanies, the data must be submitted by thedevelopers, while MoEFWA should conductmonitoring and inspection.Nevertheless, it is not clear whether adequatemeasures are being taken to ensure environmentalprotection. While the institutional and legislativeframework has been created and Albania has signedseveral MEAs, the Ministry’s lack of capacity togather relevant information suggests that a number ofexisting and emerging environmental problems arestill unsolved and that appropriate action is needed atboth local and national levels.The UNEP report, “South-Eastern European miningrelatedrisks: Identification and verification ofenvironmental hot spots”, identified Ballsh, Kucovaand Patos–Marinza oil fields as onshore oil and gasextraction sites with severe oil pollution. At thePatos–Marinza oil field, surface and groundwater isbeing severely contaminated by oil from wells,pumps, pipelines and pre-treatment facilities, andsulfurous gas and hydrocarbon emissions are emittedto the atmosphere. Wastewater containing oilimpurities is being discharged into a channel,contaminating the Gjanica River, and probablyaffecting the local water supply. The refinery alsoemits toxic pollutants into the atmosphere.It is clear that special attention should be paid toenvironmental issues concerning the Adriatic Sea.With potential oil and gas production expected toincrease in coming years, the risk of oil spills andother leakages will increase.In addition to the risks associated with oil and gasexploration, extraction, production and processing,transportation routes create major environmentalrisks. Transportation via pipelines or tankers acrossthe sea creates significant environmental problems. Ifincreased, oil and natural gas production in theAdriatic Sea will inevitably result in the constructionof infrastructure to export these resources toconsumers, raising the possibility of loss of habitatfor marine life as well as the spectre of accidentalspills. The greatest possible threats to oil discharge inoffshore operations are posed by loss of well control,pipeline leak, tanker leak, tanker accidents andrelease of bunker oil.The Government plans to obtain access to oil andnatural gas through sharing arrangements for fossilfuels transiting Albania from the Russian Federationand the Caspian Sea to Western Europe, when and ifthese pipelines are constructed. The construction ofpipelines will raise the issue of the protection of theland and sea environment in the areas through whichthe pipelines will pass. Pipelines should, preferably,avoid residential areas and pass as close as possibleto Albania’s refineries. A comprehensive assessmentof environmental impact should be prepared.The NES notes that fossil fuels production has beenthe major contributor of environmental pollution inAlbania. The NES stresses that the main concernremains spills of crude oil and refinery residues intorivers and lakes and onto oilfield land. For hundredsof square kilometers surrounding Ballsh and Fierrefineries, a specific smell can be detected, whilewater in rivers and streams has a high concentrationof hydrocarbon residues.Coal mining also has environmental impact.Although the demand for coal in Albania has fallensince the 1990s, the country continues some lignitemining. In 2006 its production was 9 ktoe or less than0.5 per cent of total primary energy supply.Nonetheless, existing mining can still causeenvironmental problems associated with thisindustry, in particular large-scale land use, anoverburden of removal and disposal, disturbance ofhydrology, acid mine drainage, fugitive dust andreclamation.