Photo: Government of Montenegro
Montenegro has signed a memorandum of understanding with companies Enerflex Energy Systems and Wethington Energy Innovation from the United States on the construction of a liquefied natural gas (LNG) terminal and a gas-fired power plant.
The gas-fired power plant could have a capacity of 240 MW to 440 MW, while total investments are estimated at EUR 330 million to EUR 750 million. Of note, Montenegrin state-owned companies have already signed a similar memorandum with Singapore-based LNG Alliance.
The Government of Montenegro said it signed a memorandum on supporting the improvement of the energy infrastructure in Montenegro.
The document is an expression of the determination of the signatories to start discussions and actions on the implementation of two energy infrastructure projects: the construction and installation of a fixed terminal for the import of LNG in Montenegro and its storage, regasification and transport, and a greenfield investment for the installation of a gas-fired power plant.
Prime Minister Abazović expressed satisfaction with what he called his country’s clear geopolitical positioning
The memorandum was signed by Prime Minister of Montenegro Dritan Abazović, Phil Pyle, representative of Enerflex Energy Systems, and Olin Wethington, president and chief executive officer of Wethington Energy Innovation. The ceremony was attended by US Ambassador to Montenegro Judy Rising Reinke.
Prime Minister Dritan Abazović expressed satisfaction with the arrival of large American energy companies in Montenegro. He also said the memorandum demonstrates the country’s clear geopolitical positioning and the possibility of job creation.
The cost of the terminal is estimated at EUR 130 million to EUR 250 million
The LNG terminal project would consist of an unloading dock for LNG imports, LNG storage and a regasification unit connected with the short pipeline to a planned thermal power plant.
Based on preliminary information, Enerflex anticipates the terminal would be able to receive 25,000 bbl per hour and that the storage facility would have an approximate capacity of 250,000 bbl, but that it would be subsequently specified.
Enerflex estimates the cost of the terminal at EUR 130 million to EUR 250 million, the document reads.
The Montenegrin government and the two companies are considering the installation of a gas-fired combined cycle power plant with a capacity of at least 240 MW and a maximum of 440 MW. It would be located close to the LNG terminal, and use General Electric’s technology.
The LNG terminal and power plant should start operating by the end of 2025
The total investment in the power plant is estimated at EUR 200 million to EUR 500 million, depending on the capacity.
The two projects should be located in or near the Port of Bar, and the Government of Montenegro intends to assess the possibility of providing land for the investments.
The US firms plan to conduct prefeasibility and feasibility studies to define the next steps for the projects.
The government and the two companies are considering the schedule for the development of the LNG terminal and cogeneration power plant that would allow facilities to start operating by the end of 2025, according to the memorandum.
October 25, 2022
Be the first one to comment on this article.