Bulgaria’s Overgas to buy regasified LNG from Excelerate’s Vlora terminal in Albania

Bulgaria’s Overgas is looking to take regasified LNG from Excelerate Energy’s planned Vlora LNG terminal in Albania under a new deal revealed on Monday.

In that regard, the two firms signed a memorandum of understanding, in Sofia, Bulgaria on July 14 relating to the sale of regasified LNG downstream of the Vlora terminal, according to a statement by the US FSRU player.

Under this deal, the two firms will enter into a negotiation for Overgas to purchase up to 1 billion cubic meters of regasified LNG annually for ten years from Excelerate via the terminal and the proposed Vlora-Fier pipeline.

The pipeline would interconnect with existing natural gas infrastructure in Europe’s Southern Gas Corridor, according to Excelerate.

Also, Excelerate said the memorandum expands the scope of its Vlora terminal project to include downstream sales of regasified LNG into Europe and has the “potential to bring much needed supply diversification not only in Bulgaria, but also in neighboring countries in the region.”

Energy security

Oliver Simpson, commercial VP of Excelerate said that for many countries in Europe’s Southern Gas Corridor, “flexible access to LNG remains critical to ensuring their energy security.”

“Integrated LNG projects like the Vlora terminal are a logical solution for meeting the urgent energy needs of Bulgaria and other Balkan and European countries linked to the Southern Gas Corridor,” Simpson said.

Moreover, this agreement follows previous MOUs between Excelerate, Italy’s Snam and Albania’s Albgaz to explore potential cooperation for the construction of a natural gas pipeline from the Vlora terminal to other natural gas infrastructure in Albania. Albgaz also signed a deal with Overgas and the recent memorandum with Spain’s Enagas.

Earlier this year, Excelerate said it plans to deploy its FSRU Excelsior to serve the Vlora LNG project in Albania after the unit completes its contract in Israel.

The firm said at the time it expects the Vlora LNG terminal and power plant project to come online in the second quarter of 2023.

- Advertisements -

Most Popular

US weekly LNG exports down to 22 shipments

US liquefied natural gas (LNG) exports decreased in the week ending April 10 compared to the week before, according...

Australia Pacific LNG to ship 1000th cargo

Australia Pacific LNG, the operator of the 9 mtpa liquefied natural gas export facility on Curtis Island near Gladstone,...

Spot LNG shipping rates, European prices drop this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet decreased further this week, and European prices...

More News Like This

WaveCrest plans capacity auctions for UK regasification project

Macquarie Capital's WaveCrest Energy kicked off a market consultation process for its proposed Teesside regasification project in the UK...

Bangladesh approves long-term LNG supply deal with Summit

Bangladesh has approved a long-term liquefied natural gas (LNG) supply deal with Summit Oil and Shipping, a part of...

Excelerate reports higher net income in 2023

US FSRU player Excelerate Energy reported higher net income and adjusted Ebitda in 2023 mainly due to new charters...

QatarEnergy, Excelerate ink long-term deal to supply LNG to Bangladesh

State-owned LNG giant QatarEnergy has signed a long-term contract with US FSRU player Excelerate Energy to supply Bangladesh with...