Photo: Aktor Group
Aktor LNG USA and Albgaz signed a 20-year commercial agreement for liquefied natural gas (LNG) from the United States. The USD 6 billion supply deal is for one billion cubic meters per year, starting in 2030. In addition, Aktor Energy USA signed a memorandum with Albania on a project for an integrated energy hub including a gas power plant. There are plans for an LNG terminal in Vlora.
The first long-term deal in Southeastern Europe for American gas was signed in Tirana. Aktor LNG USA and Albania’s state-owned Albgaz estimated the 20-year agreement at USD 6 billion. The LNG supply arrangement begins in 2030. Aktor Energy USA, another subsidiary of Greece-based Aktor Group, signed a memorandum of understanding with the Albanian Ministry of Infrastructure and Energy on “an integrated energy hub.”
Notably, Serbia could be the next country in the Western Balkans to buy LNG from the US, within an expansion of the Vertical Gas Corridor, Energypress wrote. Minister of Environment and Energy of Greece Stavros Papastavrou announced there would be a meeting soon with North Macedonia and Serbia about the gas interconnection projects.
Exarchos: Vertical Gas Corridor has enormous potential for Europe
The commercial agreement and the memorandum were signed by Chairman and Chief Executive Officer of Aktor Group Alexandros Exarchos, Albania’s new Minister of Infrastructure and Energy Enea Karakaçi and CEO of Albgaz Amarda Kapaj. Prime Minister of Albania Edi Rama and US Ambassador to Greece Kimberly Guilfoyle attended the ceremony.
“Today we took a very important step toward the implementation of the Vertical Corridor, a strategic initiative designed by the US government that aspires to provide Europe with energy security with American LNG. Our agreements, which have been strongly supported by the White House’s National Energy Dominance Council (NEDC) and the US Department of State, can unlock the enormous potential of the Vertical Corridor for the benefit of Europe,” Exarchos stated.
Aktor Energy USA interested in projects for LNG terminal, gas power plant
Aktor LNG USA is set to supply Albgaz with one billion cubic meters of gas per year. Ambassador Guilfoyle pointed out that US company Venture Global would provide the LNG.
Gas would reportedly come via an LNG terminal in Greece and the Trans Adriatic Pipeline until Albania builds its own infrastructure
The fuel would arrive via the LNG terminal in Revythousa (Revithoussa) and Trans Adriatic Pipeline (TAP), Tovima.com reported, but Albania aspires to build its own infrastructure. Aktor revealed that the memorandum envisages conducting studies on the development, construction and operation of a complex in Albania including a 380 MW natural gas–fired power plant. The US supports the project, it stressed.
The site for the investment is in Vlora, also known as Valona, where an unfunctional oil-fired power plant would be converted to gas. An LNG terminal would be built at the port, alongside a pipeline to connect to TAP. The link would be in Fier, where another Greek gas power plant project is underway. It is worth EUR 300 million.
Vlora seen as regional energy hub
Rama said Vlora would become an essential energy hub for Southeastern Europe. It is also the proposed point for a subsea electricity interconnector with Italy.
Albania signed a memorandum earlier this year with Atlantic SEE LNG Trade for the supply of up to one billion cubic metres of gas per year. It is a joint venture of Aktor Group, holding 60%, and DEPA Commercial. The latter is also called DEPA Emporias (in Greek), DEPA Commerce, DEPA Trading and DEPA Trade.
It follows a 20-year LNG supply deal from November, between Venture Global and Atlantic SEE LNG Trade, for up to four billion cubic meters of gas per annum.
In 2021, US-based companies Excelerate and ExxonMobil agreed with Albania to explore options for an LNG terminal in Vlora and the conversion of the oil-fired power plant. There was no update since.
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