Excelerate Energy, ExxonMobil LNG Market Development and the Albanian Ministry of Infrastructure are to conduct a feasibility study aimed at developing an LNG facility.
The terminal and a power plant would be located at Vlora in Southern Albania.
Under a memorandum of understanding (MOU) signed on 12th March, Excelerate will conduct a study on an integrated LNG to power solution that will include an LNG import terminal, converting and/or expanding the existing Vlora thermal power plant, and establishing small scale LNG distribution to Albania and the surrounding Balkans region.
“As Albania looks to improve energy security and resiliency, we are confident that an LNG solution would provide reliability to the country’s power grid while complementing intermittent renewables and alternative resources,” Steven Kobos, Excelerate’s President and CEO, said. “We are pleased to work with our partners in developing a reliable and affordable solution for Albania’s energy resilience.”
Home to eight major river systems, Albania relies on hydropower plants, which can become unreliable during times of drought, to supply energy to the country’s 2.8 mill inhabitants.
Albania’s Minister of Infrastructure and Energy, Belinda Balluku, said, “Supply diversification and the enhancement of supply security are crucial to Albania and to our Balkan neighbours as well. We are confident that LNG can be the key to achieving these strategic objectives and to finally providing a solution to the complex Vlora TPP project by choosing the best partners, equipped to deliver a project of such magnitude.”
ExxonMobil will be responsible for identifying opportunities to support the supply of LNG into Albania.
“LNG enables transportation of natural gas from supply centres to customers safely and cost effectively,” explained Ed Austin, ExxonMobil LNG Strategy and Portfolio Manager. “While we are at the early stages of exploring this opportunity, ExxonMobil’s global resources and reliable LNG supply chain can help Albania meet its fast-growing demand for natural gas and ensure long-term supply security.”
The pre-feasibility report is expected to be delivered in the third quarter of this year, while the targeted start-up for the LNG project could be as early as 2023, Excelerate said.