Montenegro inks MoU with US companies for LNG terminal in port of Bar
The Government of Montenegro is advancing works to install an LNG terminal in the port of Bar as it signs a memorandum of understanding (MoU) with US companies Enerflex Energy Systems and Wethington Energy Innovation.
On 12 May, Prime Minister Dritan Abazović, on behalf of the Government of Montenegro, signed the MoU with the two US companies with regard to providing support towards the enhancement of energy infrastructure in Montenegro.
This includes pursuing two energy infrastructure projects:
- the construction and installation of a fixed terminal for the importation of LNG into Montenegro and its further storage, regasification, and transportation; and
- the construction and installation of a greenfield gas-fueled thermopower plant in Montenegro, the gas supply of which comes through the LNG terminal.
As outlined in the MoU, the LNG terminal would consist of an offloading pier for imports of LNG, storage facilities for LNG, and a regasification facility directing the gas into a short pipeline to the nearby thermopower plant.
Based on preliminary information, Enerflex contemplates that the offloading pier would be able to handle 25,000 bbl per hour and the storage facility would have an approximate capacity of 250,000 bbl. These dimensions are to be refined in further discussions between the Montenegrin government and Enerflex. Subject to further front-end engineering development (FEED), Enerflex estimates that the investment in the LNG terminal would be in the range of €130 million to €250 million, the agreement states.
The LNG terminal and the power plant, with a capacity of at least 240 MW and a maximum of 440 MW, will be located at or near the Port of Bar, Montenegro, and are expected to begin operation by the end of the calendar year 2025.
Furthermore, the parties expressed their intention that the LNG terminal and power plant be considered “projects of national interest“ under the laws of Montenegro thereby permitting accelerated processing of related proposals by the US parties but with necessary transparency and final approval by the Parliament of Montenegro. US Parties intend to propose a financing structure for the projects upon completion of feasibility studies.
The signing of the MoU comes on the heels of the recent discussions between Montenegro’s Minister of Finance, Aleksandar Damjanović, and representatives of the US Department of State on economic relations, with an emphasis on cooperation in the field of energy.
The discussions took place in early 2023 when the countries examined the possibility of building an LNG terminal in the port of Bar and agreed on concrete steps towards the realisation of that idea.