Excelerate Energy and Overgas sign Vlora LNG deal
U.S.-based LNG specialist Excelerate Energy and Bulgarian natural gas firm Overgas signed a deal on Excelerate’s planned Vlora LNG terminal in Albania.
On 14 July, the parties signed a memorandum of understanding (MOU) relating to the sale of regasified LNG downstream of Excelerate’s planned Vlora LNG terminal in Albania.
Under the MOU, the two parties will enter into a negotiation for Overgas to purchase up to one billion cubic meters of regasified LNG annually for ten years from Excelerate via the Vlora terminal and the proposed Vlora-Fier Pipeline. The pipeline is expected to interconnect with existing natural gas infrastructure in Europe’s Southern Gas Corridor.
The deal expands the scope of Excelerate’s Vlora terminal project to include downstream sales of regasified LNG into Europe. According to Excelerate, it has the potential to bring much-needed supply diversification in countries in the region.
“For many countries in Europe’s Southern Gas Corridor, flexible access to LNG remains critical to ensuring their energy security,” said Oliver Simpson, commercial vice president of Excelerate. “Integrated LNG projects like the Vlora Terminal are a logical solution for meeting the urgent energy needs of Bulgaria and other Balkan and European countries linked to the Southern Gas Corridor.”
Svetoslav Ivanov, executive director of Overgas, said: “The signing of this agreement is a phenomenal example of the EU’s progress towards energy diversification and energy security in the Union, and especially in the Balkans.”
This agreement follows previous MOUs between Excelerate, Snam, and Albgaz and between Overgas and Albgaz to explore potential cooperation for the construction of a natural gas pipeline from the Vlora LNG to other natural gas infrastructure in Albania.