Texas-based floating LNG player Excelerate Energy is joining forces with Italian energy firm Snam to build a natural gas pipeline in Albania.
Excelerate has earlier this year signed a memorandum to conduct a feasibility study for the potential development of an LNG import terminal in the Port of Vlora in Southern Albania.
The project would involve converting Albania’s 98 MW Vlora thermal power plant to LNG but also the construction of a regasification terminal.
The US company said on Thursday it signed a new memorandum of understanding in Tirana with Snam and Albanian state-owned gas firm Abgaz.
Moreover, the trio would explore potential cooperation for the construction of a natural gas pipeline from the Vlora terminal to other natural gas infrastructure opportunities in Albania.
“Under this MOU, Excelerate, Snam, and Albgaz will explore joint solutions, which could potentially supply underground gas storage in Albania, providing crucial energy security to the region,” the statement said.
Snam and Albgaz could potentially operate and maintain the future pipeline.
The planning would begin immediately with representatives from each company forming a coordination team, the statement said.
“Leveraging our downstream capabilities and working alongside Albania to explore expanding their access to reliable energy, we are able to take an integral step towards energy security for the country,” Steven Kobos, chief executive of Excelerate, said.
“Together with Snam and Albgaz, we recognize the potential impact this pipeline can have for the region,” he said.