March 15 (SeeNews) - US-based liquefied natural gas (LNG) company Excelerate Energy said it has signed a memorandum of understanding (MoU) with ExxonMobil LNG Market Development Inc and Albania for the potential development of a LNG import terminal in the port of Vlora.
Excelerate will carry out a feasibility study for a potential project that will include the development of an LNG import terminal, converting and/or expanding the existing Vlora thermal power plant (TPP) and the launch of small scale LNG distribution to Albania and the Balkan region, the company said in a statement on Friday.
Under the MoU, ExxonMobil LNG Market Development, part of oil and gas exploration corporation ExxonMobil, will identify opportunities to support the supply of LNG into Albania and the LNG import project.
Albania's infrastructure and energy minister Belinda Balluku noted in the statement: "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."
The pre-feasibility report is expected to be delivered in the third quarter of 2021, while the targeted start of the LNG import project could be in 2023.
Albania produces over 90% of its electricity from hydropower plants, most of which are located along the Drin river, in the northern part of the country.
"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," ExxonMobil LNG strategy and portfolio manager Ed Austin said.