Excelerate Energy, Inc. (NYSE: EE) (Excelerate) and Bulgaria’s Overgas Inc. AD (Overgas) announced on Tuesday (Jul19) that the two Parties signed a Memorandum of Understanding (MOU), in Sofia, Bulgaria on July 14, 2022 relating to the sale of regasified liquefied natural gas (LNG) downstream of Excelerate’s planned Vlora LNG terminal in Albania.
Under this MOU, the two Parties will enter into a negotiation for Overgas to purchase up to 1.0 billion cubic meters of regasified LNG annually for ten years from Excelerate (or an affiliated entity) via the Vlora Terminal and the proposed Vlora-Fier Pipeline which is expected to interconnect with existing natural gas infrastructure in Europe’s Southern Gas Corridor. The MOU expands the scope of Excelerate’s Vlora Terminal project to include downstream sales of regasified LNG into Europe and has the potential to bring much needed supply diversification not only in Bulgaria, but also in neighboring countries in the region.
“For many countries in Europe’s Southern Gas Corridor, flexible access to LNG remains critical to ensuring their energy security,” said Oliver Simpson, Commercial Vice President of Excelerate. “Integrated LNG projects like the Vlora Terminal are a logical solution for meeting the urgent energy needs of Bulgaria and other Balkan and European countries linked to the Southern Gas Corridor. We look forward to working with Overgas and believe this agreement is the first of several that will address the lack of supply diversity in the region.”
Svetoslav Ivanov, Executive Director of Overgas said, “We are excited to begin working with an industry leader such as Excelerate. The signing of this agreement is a phenomenal example of the EU’s progress towards energy diversification and energy security in the Union, and especially in the Balkans.”
This agreement follows previous MOUs between Excelerate, Snam S.p.A (Snam), and Albgaz Sh.a (Albgaz) and between Overgas and Albgaz to explore potential cooperation for the construction of a natural gas pipeline from the Vlora Terminal to other natural gas infrastructure in Albania.