LNG

Leading European Union LNG import terminal owner and grid operator Enagás has signed an agreement in Madrid with Albania on helping the Balkan nation’s natural gas company AlbGaz develop its markets and infrastructure.

The Prime Minister of Albania Edi Rama and Spain's Energy Minister Teresa Ribera attended the signing of the Enagás-AlbGaz agreement along with the Albanian Minister of Energy and Infrastructure Belinda Balluku.

The Balkan region is one of the most vulnerable in terms of the lack of energy diversity and security and the signing of this accord is seen as another step towards helping Albania develop its economy.

AlbGaz is the Albanian Transmission System Operator (TSO) and is working to modernize the gas system in the country.

The actual gas agreement was signed by the Chief Executive of Enagás Arturo Gonzalo and his AlbGaz counterpart Arber Avrami to collaborate in the development of gas infrastructure in Albania.

“This agreement lays the foundations to contribute to the security of energy supply, not only in Albania but also at the regional level, and to the decarbonization of its economy, displacing polluting fuels and also promoting renewable gases,” said a statement.

Partnership

Arturo Gonzalo pointed out that the agreement opened up relevant avenues for future collaboration between the Spanish and Albanian gas industries.

“Cooperation between European TSOs is key in the current context. The accord is aligned with the purpose of Enagás to contribute to security of supply and decarbonisation in Europe,” added Gonzalo.

Enagás said it was already cooperating with Albania through is 16 percent shareholding of the Trans-Adriatic Pipeline (TAP) which connects Turkey with Italy through Greece and Albania.

AlbGaz CEO Avrami said his nation viewed Enagás as valuable partner.

“There are possibilities for cooperation in a series of projects that include the Vlora LNG import terminal in Albania and the Dumrea Underground Storage as well as small-scale LNG distribution,” added Avrami.

“ I am convinced that this cooperation will be an additional guarantee for the realization of these ambitious projects and the vision that foresees the transformation of Albania into a regional energy centre., he stated.

A proposal was made in July 2021 for Excelerate Energy of the US and US major ExxonMobil to start a feasibility study on developing an LNG import terminal at the Port of Vlora in southern Albania.

Under that accord, Excelerate would conduct a study to explore the potential of an integrated LNG-for-power solution for the Albanians.

This would include developing an LNG import terminal, converting or expanding the existing Vlora thermal power plant and establishing small-scale LNG distribution in Albania and for the surrounding Balkans region.

Two Balkan natural gas and utility companies, Albania's Albgaz and Bulgaria's Overgas, have signed an accord to cooperate on projects to diversify supplies in the region at an event attended by former US Secretary of State Mike Pompeo.

Pompeo attended as the Chairman of US company Linden Energy’s Advisory Board. Linden has agreed to take a 50 percent stake in Overgas subject to regulatory approval.

The accord outlined the parameters of the planned Albanian-Bulgarian cooperation to secure natural gas from non-Russian sources via commercially viable projects driven by the private sector.

“We are excited to begin working with a fellow regional gas company such as Albgaz. The signing of this agreement is a first step in regional cooperation to diversify gas supply to the Balkans,” said Svetoslav Ivanov, Executive Director of Overgas.

The agreement was signed in the Albanian capital Tirana and representatives of each company attended along with Albanian Prime Minister Edi Rama.

Linden Energy was represented by Stephen Payne, the company's President and company founder and by former Secretary of State Pompeo.

The US company in July 2021 signed an agreement to acquire 50 percent of Overgas, the independent Bulgarian gas trading company and Bulgaria’s largest privately-owned gas firm.

Linden Energy is focusing on energy project development and was founded in 2013 by Payne.

LNG record

“Payne has a history in the international energy sector as he has negotiated over 27 million tonnes per annum of LNG sales, was instrumental in the development of several large LNG export projects in the US and several major international pipelines,” said the statement on the signing event.

It noted that Linden has other projects under consideration in Eastern Europe and South Asia.

Linden Energy is additionally a 10 percent capacity holder in the Gas Interconnector Greece-Bulgaria (IGB) pipeline.

“As one of the only US companies involved in the Balkans gas trade, Linden Energy is excited to take this first step as part of Overgas in partnership with Albgaz,” stated Payne.

Secretary Pompeo said that at a time of great uncertainty in the European energy market he was proud to be a part of a team that is addressing this issue head-on.

“The Balkan region is one of the most vulnerable in terms of the lack of energy diversity and the signing of this accord is a strong step in the right direction,” Pompeo declared.

Excelerate Energy, the US specialist in floating LNG import terminals, has signed an accord with two European grid and distribution firms on developing a pipeline and possibly storage to help serve the proposed Vlora import terminal in the Balkans state of Albania.

The project accord was signed between Excelerate, Italian grid operator Snam and Albanian utility Albgaz .

Excelerate in March 2021 signed an agreement with Albania to study the potential of LNG imports and backed by ExxonMobil Corp.

The Excelerate-ExxonMobil proposal was for a feasibility study on developing an LNG import terminal at the Port of Vlora in southern Albania.

Under that accord, Excelerate would conduct a study to explore the potential of an integrated LNG-for-power solution for the Albanians.

This would include developing an LNG import terminal, converting or expanding the existing Vlora thermal power plant and establishing small-scale LNG distribution in Albania and for the surrounding Balkans region.

Under this new memorandum of understanding, Excelerate, Snam, and Albgaz will examine various projects that could also potentially include underground gas storage in Albania.

“Leveraging our downstream capabilities and working alongside Albania to explore expanding their access to reliable energy, we are able to take an integral step towards energy security for the country," stated Steven Kobos, President and Chief Executive of Excelerate.

“Together with Snam and Albgaz, we recognize the potential impact this pipeline can have for the region,” added Kobos.

As the leader in floating LNG regasification solutions, Excelerate has delivered 13 LNG terminals worldwide. 

Snam is one of Europe's largest energy infrastructure owners and a leading shareholder in the Trans Adriatic Pipeline (TAP) while Albgaz is an Albanian Gas Service Company.

“This MOU further strengthens our commitment with Albania initiated four years ago," said Mario Franchin, Senior Vice President Global Solutions Commercial at Snam.

“It marks another important step forward in the development of Albania's energy strategy and Snam is pleased to share its experience and know-how to support the country,” added Franchin.

Albgaz was founded in January 2017 as a joint stock company with 100 percent of the shares owned by the Albanian state and is a transmission system operator and natural gas distributor.