The government of Montenegro has signed a memorandum of understanding with two US-based firms to build an LNG import terminal and a power plant in Bar.
Prime Minister Dritan Abazović announced the signing of the deal via social media on Friday.
The US companies are Enerflex Energy Systems and Wethington Energy Innovation, according to a document posted on the website of the government of Montenegro prior to the signing of the deal.
The fixed terminal at or near the port of Bar, on the Adriatic Sea, would consist of an offloading pier for imports of LNG, storage facilities for LNG, and a regasification facility which would supply the gas via a short pipeline to the nearby thermopower project.
Based on preliminary information, Enerflex expects that the offloading pier would be able
to handle 25,000 bbl per hour and the storage facility would have an approximate capacity of 250,000 bbl, the parties said in the document.
LNG terminal to cost up to $272 million
Subject to further front-end engineering development, Enerflex estimates that the investment in the LNG terminal would be in the range of 130 million euros to 250 million euros ($141 million – $272 million).
As per the gas-fueled combined cycle power plant, it would have a capacity of at least 240 MW and a maximum of 440 MW, and would located in close proximity to the LNG terminal, it said.
Depending on the installed capacity, the costs for the powert plant are expect to be between 200 million euros and 500 million euros ($218 million – $545 million).
Operations start targeted for 2025
The development would be considered as “projects of national interest“, while the US firms intend to propose financing structure for the projects upon completion of feasibility studies.
“Contingent upon timing of the parties entering into a definitive agreement, the parties contemplate a schedule of development and construction of the projects that will enable the projects to begin operation by the end of calendar year 2025,” they said.
Montenegro currently has no LNG import facilities.
Besides this deal, Singapore-based LNG Alliance signed a memorandum of understanding with Montenegro’s state-owned power firm EPCG in December 2021 to look into building an LNG import terminal and two gas-fired power plants in the country.
In May 2022, LNG Alliance completed the prefeasibility studies for the proposed Bar LNG terminal and signed a new MoU with the Port of Bar for further advanced studies for the FSU-based 0.4 mtpa import terminal, which can be modularly expanded to 1.2 mtpa with demand, the firm previously said.