In a strategic move to diversify its energy sources, Albania has finalized a substantial liquefied natural gas (LNG) supply agreement valued at approximately $6 billion. This long-term contract, spanning 20 years, involves collaboration between the Albanian government, Venture Global, and Aktor LNG USA. The initiative is part of a broader framework aimed at bolstering regional energy security and stability in cooperation with Greece and the United States.
A key aspect of this agreement is the revitalization of the Vlore gas-fired power plant, which has faced delays since its completion. The Albanian government intends to convert this facility, originally designed for oil, to operate on natural gas sourced from the newly established LNG supply arrangement. This conversion is expected to breathe new life into a project that has remained dormant since its construction.
Once operational, the Vlore power plant is projected to deliver around 350 MW of installed capacity. Built in 2011 with support from prominent international financial institutions such as the World Bank, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB), the facility has yet to commence commercial operations despite significant backing.
Previous efforts to establish LNG infrastructure in Vlore encountered numerous challenges. A 2021 partnership involving Excelerate Energy and ExxonMobil LNG Market Development aimed to create an LNG import terminal and convert the power plant while developing a regional distribution network. However, this initiative faltered when a planned floating LNG unit was redirected to Germany in 2022.
The recent agreement represents a renewed commitment by Albania to position itself as a regional energy hub. The anticipated LNG imports are expected not only to meet domestic energy requirements but also to address broader energy needs across the Balkan region.
