The construction and installation of a fixed terminal for the import of liquefied natural gas and a gas-fired thermal power plant are planned near the Port of Bar, and these are projects worth hundreds of millions of euros. The American companies Enerflex energy systems and Wethington energy innovation are interested in these projects, and today a Memorandum of Understanding was signed with them regarding the provision of support for the improvement of the energy infrastructure in Montenegro.
The memorandum was signed by Prime Minister Dritan Abazović, Phil Pyle on behalf of Enerflex Energy Systems and Olin Wethington from Wethington Energy Innovation. As announced during the signing of the memorandum, a feasibility study needs to be done first, and after that it will be known when the works will start and the exact value of the investment.
The Prime Minister, Dritan Abazović, said that, given that it is a technology that is partly of an assembly nature and where the equipment would arrive from abroad and be assembled in Bar, from the moment the investors sign the final contract with the Port of Bar, it could quickly start with the execution of works.
From the moment they start the works, I think it shouldn’t take more than two years to put all the capacities into operation – said Abazović. He stated that, after several successful meetings, the conditions were created to sign a memorandum of cooperation on something that is the strategic national interest of Montenegro.
The peculiarity of Montenegro’s strategic interest is to make the Port of Bar a place where an LNG terminal will be built and thus natural gas will arrive in Montenegro for the first time. We believe that energy diversification is essential for the development of our country – said Abazović. As he stated, it was almost impossible to bring in credible American investors in the previous period, although certain American companies are already working in Montenegro.
Bringing prestigious American companies from the energy sector is a big deal not only for Montenegro, but for the entire region. We are talking about companies that have one of the best know-how in the world, that have knowledge about the development of new technologies.
These new technologies will not only be used in the segment related to natural gas, but also in the production of electricity. In this way, the Port of Bar it should become a regional hub for that type of energy, to increase its overall capacity and as such become an important point when it comes to maritime traffic – he stated. The effects that would be realized if this plan is implemented are multiple, he added.
They would also bring financial benefits for our country, new jobs, new technology, training people to work in specific jobs that currently do not exist in Montenegro, and in this way they would open a completely new window and a completely new vision when it’s about energy – said the Prime Minister.
He expressed his belief that the representatives of the companies, together with the Port of Bar, will continue the activities to determine the concrete plot on which the works would be carried out, and that the technology that will come from the USA will mark a big bust for other sectors and the economy in Montenegro.
I believe that today we once again send a message that all those investors who want to do fair business, in accordance with the Constitution and the law, and especially those who come from our closest partner countries, are more than welcome. The doors of the Government of Montenegro are open to all such companies. It is a great honor for me that companies that have facilities in many countries of the world and that have incredible technology in Houston when it comes to natural gas are interested in coming to Montenegro and developing their business.
Abazović also thanked the ambassador of the United States of America in Montenegro, Judy Rising Reinke, who, as he stated, is trying for the umpteenth time to raise the component of economic cooperation between the USA and Montenegro to a higher level.
I believe that we attended an event that should lay the foundation for great things in Montenegro and I am sure that we caught one of the last trains because the competition in the region and this part of the Mediterranean is great when it comes to these types of businesses. However, Montenegro is definitely a place where such projects should be developed – concluded Abazović.
The memorandum that was signed today was accepted by the Government at yesterday’s session. As stated, it is an expression of the commitment of the signatory parties to start discussions and actions with the aim of realizing two energy infrastructure projects, namely the construction and installation of a fixed terminal for the import of liquefied natural gas into Montenegro and its further storage, regasification and transport, and the construction project and installation of a greenfield gas-fired thermal power plant in Montenegro, whose gas supply would be made possible through the planned terminal.
The memorandum stated that both projects would be located in or near the Port of Bar, and the estimate is that the price of the terminal would be in the range of EUR 130 to 250 million, and the thermal power plant project between EUR 200 and 500 million, depending on the installed capacity. – stated in the statement issued by the Government after the session.
The foreign signatories from the USA plan to conduct pre-feasibility studies related to the projects, and to undertake in good faith the rapid development and operation of the projects, and are also considering a schedule for the development and construction of the projects that will allow them to begin work by the end of 2025.
The parties intend to assess whether the projects, according to the laws of Montenegro, could be considered “projects of national interest”, which would enable accelerated processing of appropriate proposals by signatories from the USA, but with the necessary transparency and final approval by the Assembly Montenegro – it has been clarified.
The parties from the USA intend to propose the financing structure for the projects after the completion of the feasibility study, and the intention of all the signatories is for the projects to be established in full compliance with applicable environmental standards and in accordance with the law.
The idea of building an LNG terminal in Montenegro is not new, and the company LNG Alliance Pte Ltd has previously shown interest. The Port of Bar signed a memorandum of understanding with this company last year, and as it was announced then, this company is interested in investing in the development of a terminal for receiving gas and liquid natural gas, as well as an electrification center with a minimum power of 100mw.
At that time, it was said that the scope of this company’s investment was 200 million USD, which it would bear in its entirety, making it one of the most significant greenfield investments in Montenegro.
The company announced that they reckon that the LNG terminal they would build in Bar could supply gas not only to Montenegro, but also to the surrounding countries – Bosnia and Herzegovina, Kosovo, Albania and Serbia, because currently on the coast of the Adriatic and the Ionian Sea, in the length of almost a thousand kilometers from the Albanian-Greek border in the south to the LNG terminal on the Krk estuary in Croatia in the north, there is no other terminal for gas and the import of this energy source via ship transport.
According to earlier announcements, it was expected that the LNG Alliance would make a decision on the construction of the LNG terminal in the first quarter of this year.
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