US-based Excelerate Energy and ExxonMobil on March 12 signed a MoU with the Albanian government to conduct a feasibility study for the development of an LNG project in the Port of Vlora in Southern Albania, Report informs referring to offshore-energy.
Albania relies on hydropower plants, which can become unreliable during times of drought, to supply energy to the country. LNG would bring reliable, affordable, and cleaner energy to the region and complement Albania’s hydropower-based electricity production.
Excelerate will conduct a study to explore the potential of an integrated LNG to power solution that includes developing an LNG import terminal, converting and/or expanding the existing Vlora thermal power plant, and establishing small-scale LNG distribution to Albania and the surrounding Balkans region.
ExxonMobil, one of the largest natural gas producers in the US and a producer of LNG, will lead the charge on identifying opportunities to support the supply of LNG into Albania and the LNG Import Project.
“As Albania looks to improve energy security and resiliency, we are confident that an LNG solution would provide reliability to the country’s power grid while complementing intermittent renewables and alternative resources,” said Steven Kobos, president and CEO of Excelerate.
“Supply diversification and the enhancement of supply security are crucial to Albania and to our Balkan neighbors as well. We are confident that LNG can be the key to achieving these strategic objectives and to finally providing a solution to the complex Vlora TPP project by choosing the best partners, equipped to deliver a project of such magnitude,” said Belinda Balluku, the Albanian minister of infrastructure and energy.
“LNG enables transportation of natural gas from supply centers to customers safely and cost-effectively. While we are at the early stages of exploring this opportunity, ExxonMobil’s global resources and reliable LNG supply chain can help Albania meet its fast-growing demand for natural gas and ensure long-term supply security,” noted Ed Austin, ExxonMobil LNG strategy and portfolio manager.
The pre-feasibility report is expected to be delivered in the third quarter of 2021, while the targeted start-up for the LNG Import Project is 2023.
In mid-January, the cost of natural gas at the TTF hub reached a record $337 per 1,000 cubic meters. At the same time, spot gas prices in Asia exceeded $1,000 per 1,000 cubic meters.