LNG

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.

Jan 1 (LNGJ) - Azerbaijan, the former republic of the Soviet Union, has started commercial natural gas supplies to southern Europe via the Trans- Adriatic Pipeline (TAP) in competition to LNG and Russian pipeline gas from Gazprom. The TAP pipeline is 3,500 kilometres in length and is part of the $40-billion Southern Gas Corridor bringing natural gas to Europe from the Shah Deniz II field in the Caspian Sea, operated by UK oil and gas major BP.

   Azerbaijan plans to supply the markets of the European Union with 10 billion cubic metres per annum of pipeline gas, including 8 Bcm to Italy and a combined 2 Bcm to Greece and Bulgaria. It has already supplied gas to Turkey. The TAP stakeholders include BP and the Azeri energy company Socar, as well as the gas grid operators of Italy, Spain and Belgium.

The Trans-Adriatic Pipeline (TAP), an 878-kilometres transportation system bringing Caspian natural gas from Azerbaijan to Greece, Albania, via the Adriatic Sea and Italy and whose main shareholders are among Europe’s main LNG terminal and grid operators has begun commercial operations.

Enagás, the Spanish natural gas network operator and LNG terminal owner, said its terminals unloaded 126 LNG cargoes in the first half of 2020, 12.5 percent more than in the same period of last year as gas demand in Spain begins to return to pre-Covid-19 levels.

Enagas, the Spanish natural gas network owner and operator of LNG terminals, posted 2.3 percent higher nine-month net profits of 333.1 million euros ($371M) as demand for natural gas in Spain reached its highest level in 10 years.

Enagas, the Spanish gas network owner and LNG terminal operator, posted a more than 7 percent drop in first-quarter revenues as it reported progress on the Trans Adriatic Pipeline connecting Turkey with Italy via Greece and Albania and reflected on a US acquisition.

Enagas, the Spanish natural gas network and LNG terminal owner, has entered the US energy infrastructure market by investing in Tallgrass Energy, whose assets include 11,000 kilometres of transmission pipelines.

The Spanish company said the transaction is part of its strategy to invest in core business assets in growth markets on an international basis alongside strategic partners.

Enagas, which already has investments in LNG import terminals on the American continent, at Altamira in Mexico and Quintero in Chile, has entered into an agreement with the equity funds, Blackstone of the US and GIC of Singapore, to invest $590 million for a 10.93 percent indirect ownership interest in Tallgrass Energy.

Tallgrass, based in Leawood in the Midwest state of Kansas, has assets including the Rockies Express Pipeline, one of the largest US pipelines that is being transformed into the nation’s northernmost bi-directional natural gas gathering system.

Enagas explained that its investment is in the holding company that owns 100 percent of TGE’s general partner, as well as 43.91 percent of the economic interests in TGE .

The investment is structured so that Blackstone retains a majority stake, GIC has a minority shareholding, as does Enagas with 24.90 percent of the holding company.

Following the closing of the transaction, Enagas has agreed to acquire an additional 3.52 percent of the holding company for around $83M, subject to completion of certain conditions. The Spanish company has also agreed to future investments of up to $300M in TGE.

“As an industrial partner, Enagas will have a seat on the company's Board of Directors, contributing its know-how in operating and developing energy infrastructure,” said Enagas.

Enagas has four domestic LNG import terminals around Spain at Barcelona in the northeast, Cartagena in the southeast, Huelva in the southwest and Gijon in the northwest.

It also owns a 50 percent stake in the facility serving the northwest city of Bilbao.

Other investments held by Enagas include its stake in Trans Adriatic Pipeline, part of Europe’s Southern Gas Corridor.

It is also part of a European gas grid group that acquired control of the Greek natural gas transmission operator DESFA.

“Enagas embarked on its internationalisation in 2011 as a part of an ongoing strategy with two main objectives, maintaining the maximum efficiency and security in the operation of the Spanish gas system, and to continue expanding as a company,” it said.

“This international expansion also helps drive the business of other Spanish industrial companies related to the energy sector,” added Enagas.

“This acquisition allows Enagas to unlock the value of its vast experience in developing and operating gas infrastructure and strengthen its position as industry leader and expert,” stated the company.

Wallace Henderson, Senior Managing Director in Blackstone Infrastructure Partners, said he was delighted Enagas had joined the investment consortium.

“With extensive midstream operations around the world, they bring valuable perspectives to Tallgrass that will benefit our investment and we look forward to their contributions,” added Henderson.

Enagas, the Spanish natural gas network owner and LNG terminals operator, reported firm profits and the 85 percent completion of Trans Adriatic Pipeline, part of Europe’s Southern Gas Corridor.

European liquefied natural gas terminal stakeholders and network operators in Spain, Italy and Belgium have completed their acquisition of majority control of the Greek gas grid operator DEFSA, sold in a tender by the government privatization agency.