Montenegro is actively exploring the development of gas-fired power plants and a liquefied natural gas (LNG) terminal at the Port of Bar, a move that underscores the shifting energy landscape in the Balkans amid heightened U.S. initiatives to enhance LNG supply routes in Southeast Europe. This strategic consideration emerges as European nations seek to reduce their reliance on Russian gas, thereby reshaping regional energy security frameworks.
The Adriatic coast, particularly through Croatia and Montenegro, is being positioned as a pivotal LNG gateway for the Western Balkans. Montenegro has entered into several memoranda of understanding with international energy firms regarding the potential establishment of an LNG import terminal in Bar, which would be complemented by associated gas-fired generation capacity.
Currently, Japanese energy company JERA is conducting a feasibility study to assess the technical, commercial, and financial viability of the proposed LNG terminal and power plants in Montenegro. Prime Minister Milojko Spajić has indicated that the findings from this study are expected to be available by mid-2026.
Previous assessments by EPCG and government entities have identified various configurations for gas power plants ranging from 50 MW to 400 MW, with possible sites including Bar, Podgorica, Nikšić, and Pljevlja. Estimated investments for these projects are projected between approximately €233 million and €362 million, depending on the scale and infrastructure involved.
This initiative aligns with broader regional energy restructuring efforts as the United States seeks to position its LNG exports as a primary alternative for Central and Eastern Europe. Earlier this year, several Balkan and Central European nations signed a declaration in Washington advocating for increased access to U.S. LNG supplies and diversified import routes.
While Montenegro did not formally sign this declaration, its aspirations for an LNG terminal in Bar could potentially serve not only domestic needs but also supply neighboring countries such as Serbia, Bosnia and Herzegovina, Kosovo, and possibly Hungary. This development could transform Montenegro from an isolated electricity market into a significant regional gas transit hub.
The implications for Serbia are particularly noteworthy. President Aleksandar Vučić has expressed interest in utilizing the future Bar terminal for LNG imports as Belgrade seeks to diversify its energy sources amidst uncertainties surrounding long-term Russian gas supplies and evolving sanctions affecting NIS.
The ongoing discussions highlight a complex contradiction within Europe’s energy transition narrative. While there is a public commitment to decarbonization and renewable energy goals, many electricity systems are reverting to gas-fired generation as a stabilizing technology to support grids increasingly reliant on intermittent renewable sources.
In Montenegro’s context, the urgency of transitioning away from hydropower variability and addressing the challenges posed by the aging Pljevlja coal power plant—which faces environmental scrutiny—has made gas generation an attractive transitional solution. This approach aims to enhance system flexibility and ensure winter supply security.
Proponents of the LNG project argue that it could bolster national energy security, attract significant infrastructure investments, and foster new industrial activities related to gas logistics. Some proposals also consider future adaptability towards hydrogen or ammonia infrastructure.
However, substantial opposition exists. Environmental groups, local activists, and segments of Montenegro’s coastal municipalities have voiced strong concerns about the LNG plans, arguing they may entrench long-term fossil fuel dependency at a time when Europe is intensifying its decarbonization efforts. Over 40 NGOs have publicly opposed the construction of both the LNG terminal and associated power plants in Bar.
The Port of Bar serves as a crucial focal point in this debate. Geopolitically, it offers Montenegro an opportunity to enhance its role within regional energy logistics; environmentally, critics warn that establishing industrial LNG infrastructure could significantly disrupt sensitive tourism and ecological zones along the Adriatic coast.
The financial feasibility of these projects remains uncertain due to volatile LNG economics in Europe since the onset of the energy crisis. Future profitability will depend on factors such as long-term gas pricing, regasification rates, regional pipeline connectivity, and advancements in renewable energy deployment across the Balkans.
Despite these uncertainties, Montenegro’s gas strategy appears increasingly intertwined with a larger transformation of Europe’s energy landscape. The Western Balkans are evolving from peripheral systems into critical corridors for LNG imports, electricity interconnections, renewable balancing capabilities, and future industrial decarbonization supply chains.
Ultimately, Montenegro’s discussions surrounding LNG development extend beyond mere infrastructure projects; they raise fundamental questions about whether the nation intends to prioritize its identity as a tourism-focused coastal economy or embrace its potential as a vital player in regional energy security within Southeast Europe’s evolving geopolitical framework.
