Singapore-based LNG Alliance is joining forces with Montenegro’s state-owned power firm EPCG to look into building an LNG import terminal and two gas-fired power plants in the country.
In that regard, the two firms have signed a memorandum of understanding on December 8, according to a statement by EPCG on Wednesday.
Under the memorandum, LNG Alliance, in cooperation with EPCG, would conduct a detailed feasibility study as well as an environmental study for the construction of two gas-fired power plants in Bar and Podgorica, the statement said.
EPCG would operate both of the power plants.
Subject to further discussions and other conditions, LNG Alliance would build an LNG import terminal in the Bar port which would feed the two plants, EPCG said, but it did not provide any additional information regarding the facility.
Also, the partners would look into several options for the transport of the fuel from the terminal to the power plants, including a pipeline, it said.
Montenegro does not currently have LNG import facilities. The country’s government revealed in 2020 it was looking into importing LNG from the US via the port of Bar on Montenegro’s Adriatic coast.
Plans include distribution by ISO LNG containers to serve the entire region
LNG Alliance said last year it had opened a new office in India’s Chennai as part of its plans to invest in the country’s growing LNG sector.
The firm is also developing the Amigo LNG export project in Mexico which includes a 7 mtpa liquefaction facility.
Besides offices in Singapore and Houston, the firm operates in Mexico, India, Indonesia, and now will add Montenegro as well.
“We believe that LNG will be a key component towards decarbonization pathway for Montenegro besides providing energy transition and increased reliability to the power sector,” Muthu Chezhian, CEO of LNG Alliance told LNG Prime on Wednesday.
“As part of detailed feasibility study and investment planning, to be done in cooperation with EPCG, we will assess and validate the current and projected energy demand from both power and non-power sectors in Montenegro,” Chezhian said.
The CEO added that studies would include, “various options for gas/LNG transportation, including virtual pipelines (LNG distribution by ISO LNG containers) to serve the entire geographical region.”