Spain’s Enagas and Albania’s Albgaz pen LNG cooperation deal

Spanish LNG terminal operator Enagas has signed a memorandum of understanding with Albanian state-owned firm Albgaz to cooperate in natural gas and LNG projects.

The CEOs of Enagas, Arturo Gonzalo, and Albgaz, Arber Avrami, signed the deal in Madrid on Thursday, according to a statement by Enagas.

“This agreement lays the foundation for contributing to the security of energy supply, not only in Albania but also at regional level, and to the decarbonization of its economy by displacing polluting fuels and also promoting renewable gases,” the statement said.

Gonzalo said in the statement that this agreement opens up important avenues for future collaboration, as collaboration between European TSOs “is key in the current context” .

He also said that the company already has a relationship with Albgaz thanks to the presence of Enagas in the 16 percent shareholding of the Trans Adriatic Pipeline (TAP) ─ which links Turkey with Italy through Greece and Albania, as well as in its eventual expansion, and has a 12 percent stake in the Greek operator DESFA.

Vlora LNG terminal

For his part, Avrami, pointed out that this memorandum outlines the possibilities of cooperation on a “number of projects” including the IAP, Vlora LNG terminal, Dumrea underground storage and small-scale LNG distribution program.

“I am convinced that this cooperation will be an added guarantee towards the completion of these ambitious projects and the vision that foresees the transformation of Albania in a regional energy hub,” he said.

In May, US floating LNG player Excelerate Energy revealed plans to deploy its FSRU Excelsior to serve the Vlora LNG project in Albania after the unit completes its contract in Israel.

Last year, Excelerate Energy signed a deal with Italy’s Snam and Albgaz to build a natural gas pipeline in Albania.

Prior to that, Excelerate signed a memorandum to conduct a feasibility study for the potential development of an integrated LNG-to-power solution, including an LNG import terminal in the Port of Vlora in southern Albania.

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