Montenegro is revisiting plans for gas-fired power plants and a liquefied natural gas (LNG) terminal at the Port of Bar, reflecting a significant shift in the energy landscape across the Balkans and Central Europe. This renewed focus aligns with the United States’ efforts to expand LNG supply routes into Southeast Europe as the region seeks to reduce its reliance on Russian gas.
The Adriatic coast is emerging as a potential alternative LNG gateway for the Western Balkans, with Montenegro’s government actively engaging international energy firms to explore the development of an LNG import terminal in Bar. This initiative includes plans for associated gas-fired generation capacity, supported by multiple memoranda of understanding signed with various stakeholders.
Currently, Japanese energy company JERA is conducting a feasibility study to assess the technical, commercial, and financial viability of the proposed LNG terminal and gas plants in Montenegro. Prime Minister Milojko Spajić has indicated that the study is expected to conclude by mid-2026.
Previous studies conducted by EPCG and the government have evaluated several configurations for gas power plants, ranging from 50 MW to 400 MW. Potential locations for these plants include Bar, Podgorica, Nikšić, and Pljevlja, with estimated investment costs between approximately €233 million and €362 million, depending on the scale and infrastructure involved.
This project is part of a broader regional energy restructuring strategy, with the U.S. aiming to position its LNG exports as a key alternative supply source for Central and Eastern Europe. Earlier this year, several Balkan and Central European nations signed a declaration in Washington advocating for enhanced access to U.S. LNG supplies and diversified gas import routes.
Although Montenegro did not formally sign this declaration, its ambitions regarding LNG align with this emerging regional framework. A future LNG terminal in Bar could potentially serve not only Montenegro but also parts of Serbia, Bosnia and Herzegovina, Kosovo, and possibly Hungary, transforming Montenegro into a crucial player in regional gas transit.
The implications for Serbia are particularly significant. President Aleksandar Vučić has confirmed interest in utilizing LNG imports through the proposed Bar terminal as Belgrade seeks to diversify its energy sources amidst uncertainties surrounding long-term Russian gas supplies.
This discussion also highlights a growing contradiction within Europe’s energy transition. While there is a strong public commitment to decarbonization and renewable energy, many electricity systems are increasingly relying on gas-fired generation to stabilize grids that incorporate more wind and solar power.
In Montenegro’s case, reliance on hydropower variability and the aging Pljevlja coal power plant complicates matters. Gas generation is being considered as a transitional solution to enhance system flexibility, reserve margins, and winter supply security.
Proponents of the LNG project argue that it could bolster energy security, attract strategic investments, and stimulate new industrial activities related to gas logistics. Some concepts also envision future adaptability towards hydrogen or ammonia infrastructure.
However, substantial opposition exists. Environmental groups, local activists, and segments of Montenegro’s coastal municipalities have voiced strong objections to the LNG plans, asserting that such projects risk entrenching long-term fossil fuel dependency at a time when Europe is pushing for decarbonization. Over 40 NGOs have publicly opposed the construction of an LNG terminal and gas power plant in Bar.
The Port of Bar plays a central role in this debate. Geopolitically, it presents Montenegro with an opportunity to reposition itself within regional energy logistics; environmentally, critics warn that industrial LNG infrastructure could disrupt sensitive tourism and ecological areas along the Adriatic coast.
The financial viability of these projects remains uncertain amid volatile LNG economics in Europe. Future profitability will heavily depend on long-term gas pricing, regasification utilization rates, regional pipeline connectivity, and the pace of renewable energy deployment across the Balkans.
Despite these uncertainties, Montenegro’s strategy regarding gas appears increasingly linked to a larger transformation within Europe’s energy landscape. The Western Balkans are gradually shifting from peripheral energy systems to contested infrastructure corridors that integrate LNG imports with electricity interconnections and future industrial decarbonization supply chains.
The ongoing discussion surrounding LNG thus transcends mere infrastructure development; it poses critical questions about whether Montenegro aims to remain primarily a tourism-focused coastal economy or evolve into a vital regional hub for energy security amidst changing geopolitical dynamics in Southeast Europe.
