U.S. floating LNG player Excelerate Energy has joined forces with Italian energy firm Snam to build a natural gas pipeline in Albania.
Earlier this year, Excelerate Energy and ExxonMobil signed an 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.
At the time, the company stated that the project would involve converting Albania’s 98 MW Vlora thermal power plant to LNG but also the construction of a regasification terminal.
Excelerate said on Thursday it now signed a new memorandum of understanding in Tirana with Snam and Albanian state-owned gas firm Abgaz.
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.
Steven Kobos, CEO of Excelerate, 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. Together with Snam and Albgaz, we recognize the potential impact this pipeline can have for the region”.
Mario Franchin, SVP of global solutions and commercial at Snam, added: “This MoU further strengthens our commitment with Albania initiated four years ago. It marks another important step forward in the development of Albania’s energy strategy and Snam is pleased to share its experience and know-how to support the country and Albgaz in its path in the energy transition“.
The U.S. firm also stated that under this MoU, Excelerate, Snam, and Albgaz would explore joint solutions, which could potentially supply underground gas storage in Albania, providing crucial energy security to the region.
It is worth noting that Snam and Albgaz could potentially operate and maintain the future pipeline. The planning is expected to begin immediately with representatives from each company forming a coordination team.
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