Albania signs $6 billion gas deal with US

A $6 billion energy security agreement was signed in Tirana in the presence of the Prime Minister of Albania, Edi Rama, and the United States Ambassador to Greece, Kimberly Guilfoyle.

The agreement was signed between the Albanian company Albgaz and two large international companies, one American and the other Greek.

The document foresees the development of the Vlora Energy Center and the framework agreement for the supply of liquefied natural gas, as important steps towards diversifying energy sources and strengthening energy independence, in close cooperation with the United States, as well as interaction with Greece.

The signing of the agreement was preceded by a post on X by the US Ambassador to Greece, Kimberly Guilfoyle.

“… in Tirana to advance the US President's energy agenda and to join Prime Minister Edi Rama to participate in the signing ceremony of a historic agreement between Albania, Venture Global and Aktor LNG USA for a 20-year agreement for US liquefied natural gas,” the ambassador emphasized.

She said the $6 billion commitment strengthens energy security and national security across the region.

“When the United States, Albania, and Greece work together, this region is more connected, safer, and more prosperous,” said Ambassador Guilfoyle.

The agreement aims to build infrastructure in Vlora for the import of liquefied gas from the US and its regasification for supply to Southern Europe.

Albania's Minister of Energy and Infrastructure, Enea Kakaraçi, during the agreement signing ceremony said that the partnership with the US reflects a shared vision to build a secure and sustainable energy future.

"A central pillar of this vision is the development of the Vlora Energy Center which is a component, a multi-component project that will redefine Albania's role on this energy map," he said.

Vlora Energy Center

The Vlora Energy Center, projected to produce 97 MW of electricity per year, was built in October 2011.

Its goal was to produce electricity from oil/gas and reduce Albania's dependence on hydropower plants and solve problems with electricity supply during peak load conditions as well as in conditions of lack of rainfall.

The project was financed by the Albanian Power Corporation, the World Bank, the European Bank for Reconstruction and Development, and the European Investment Bank, EIB.

The project cost 130 million euros. After completion, it suffered serious technical problems, mainly with the cooling system, and has been largely closed since 2012. In recent years, the Albanian government has discussed several plans to reactivate it, but no decision has been made.

The American Ambassador to Athens described Albania as a steadfast partner of the US and a country of exceptional strategic importance for the Balkans and Europe.

"President Trump has been a passionate champion of energy security. His vision and actions have reinforced the fact that providing sustainable energy strengthens the United States and our strategic allies. The Trump administration has elevated energy cooperation as a pillar around the world. And today's signing is a tangible manifestation of that effort," Guilfoyle said.

The Ambassador also emphasized that the US supports a Balkans that is more interconnected, more energy secure, and more prosperous, and Albania, as she said, is essential to this vision.

Even the Prime Minister of Albania, Edi Rama, described this agreement as of extraordinary importance.

"Vlora will become a critical point for energy in Southeast Europe. I emphasize the importance of the need for Albania and Greece to strengthen our connection and cooperation in many ways, but especially with regard to energy supply, energy production and the resistance of energy independence. By positioning Albania as a connector, the energy flow goes through the Western Balkans, contributes to the stability of the region and affects the energy security of its neighbors," said Rama.

The Albanian Prime Minister stated that the partnership between Albania and the US today conveys a very clear message that even small countries can become part of solving the most pressing challenges, such as the need for energy.

Kosovo, meanwhile, does not have a pipeline network for the distribution of natural gas nor a built-in institutional system for the management of this sector.

However, the Kosovo Energy Strategy for the period 2022-2031 foresees the possibility for the country to connect to regional gas networks in the future.

The Geopost