Page 12 - GLNG Week 29 2022

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Bulgaria’s Overgas signs

MoU for US LNG

CONTRACTS BULGARIA’S Overgas, part-owned by US-based Fier.
Linden Energy, has penned a memorandum of Given that the Vlora LNG project is still at an
understanding (MoU) with US LNG ship oper- early stage of development, its capacity has not
ator on acquiring 1bn cubic metres per year of been decided upon, and its participants have not
natural gas from the latter’s planned regasifica- disclosed cost estimates.
tion terminal in Vlora in south Albania. “For many countries in Europe’s Southern
The deal paves the way for the two sides to Gas Corridor, flexible access to LNG remains
negotiate a 10-year sales and purchase agree- critical to ensuring their energy security,” said
ment for the gas supply. Excelerate’s commercial vice president, Oliver
Vlora LNG – a project being developed Simpson. “Integrated LNG projects like the
jointly by Excelerate, ExxonMobil and Alba- Vlora terminal are a logical solution for meet-
nia’s energy ministry – is set to play a key role ing the urgent energy needs of Bulgaria and
in Albania’s plan to diversify its energy system other Balkan and European countries linked to
by importing natural gas. The country currently the Southern Gas Corridor. We look forward to
relies almost entirely on hydropower, which puts working with Overgas and believe this agree-
it at risk of shortages during times of drought. It ment is the first of several that will address the
also is playing a role in Washington’s efforts to lack of supply diversity in the region.”
expand the access of US exporters in the Balkan Bulgaria lost access to Russian gas supply sev-
region, which is heavily dependent on Russian eral months ago after refusing to comply with the
gas at present. Kremlin’s decree on making payments for gas in
The project is currently progressing through rubles instead of foreign currencies. The coun-
the second phase of a feasibility study, following try is anxiously awaiting the start-up of a gas link
initial approval from Albanian authorities in with Greece later this year that would enable it to
January. It is expected to fuel a 100-MW thermal tap gas supply via Azerbaijan and also regasified
power plant (TPP) in the port of Vlora, that was LNG.
built to run on both gas and coal. But first the Linden Energy bought a 50% stake in Over-
facility must undergo repair, as since its comple- gas in July last year, setting out its ambition at the
tion in 2009, it has remained offline because of time to diversify Bulgaria’s energy supply. The
technical faults in its design. There is also a line to interest was previously owned by Russia’s Gaz-
connect the Vlora LNG terminal with the South- prom and then was bought back by Overgas in
ern Gas Corridor (SGC), which flows Azeri gas December 2020.™
into Southeast Europe, via a pipeline running to

P12 www. NEWSBASE .com Week 29 22•July•2022