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Excelerate Energy Signs Gas Sales MOU with Bulgaria’s Overgas
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Rhea-AI Summary
Excelerate Energy and Overgas signed a Memorandum of Understanding on July 14, 2022, in Sofia, Bulgaria, focusing on the sale of up to 1 billion cubic meters of regasified LNG per year for ten years from Excelerate's Vlora LNG terminal in Albania. This agreement aims to enhance energy security in Bulgaria and neighboring regions. The MOU represents a strategic expansion for Excelerate’s Vlora Terminal project, addressing the urgent energy needs within Europe’s Southern Gas Corridor. Both companies express optimism about future collaborations to improve supply diversity.
Positive
The MOU allows for the potential sale of 1 billion cubic meters of LNG annually, providing a steady revenue stream for the next ten years.
The agreement enhances Excelerate's role in European energy security by diversifying supply sources for Bulgaria and the Balkans.
The partnership with Overgas could lead to further collaboration, expanding Excelerate's infrastructure and market presence in Europe.
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THE WOODLANDS, Texas--(BUSINESS WIRE)--
Excelerate Energy, Inc. (NYSE: EE) (“Excelerate”) and Bulgaria’s Overgas Inc. AD (“Overgas”) announced today 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.
About Excelerate Energy:
Excelerate Energy, Inc. is a US-based LNG company located in The Woodlands, Texas. Founded in 2003 by George B. Kaiser, Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. Excelerate offers a full range of flexible regasification services from FSRU to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Ho Chi Minh City, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit www.excelerateenergy.com.
About Overgas Group:
Established in 1992, Overgas is the biggest Bulgarian private company in the natural gas sector and a leader in developing and providing infrastructure services in the field of gasification in particular. Overgas Group’s main activities cover the whole chain of research and development, supply, distribution and sale of natural gas both on wholesale and retail level. Overgas Inc. AD is the biggest independent natural gas supplier and trader on the market. It is the first one to gain access to the infrastructure network paving the way to market liberalization. Part of Overgas Group is Overgas Mrezhi AD, Bulgaria’s largest gas distribution company, which currently provides service to over 81,000 end customers. The distributor currently owns over 2,500km of pipeline inside Bulgaria with plans of rapid expansion in the near future.
What is the MOU between Excelerate Energy and Overgas about?
The MOU focuses on the sale of up to 1 billion cubic meters of regasified LNG annually from Excelerate's Vlora LNG terminal in Albania to Overgas over ten years.
When was the MOU between Excelerate Energy and Overgas signed?
The MOU was signed on July 14, 2022, in Sofia, Bulgaria.
How will the MOU impact energy security in Bulgaria?
The MOU aims to enhance energy security in Bulgaria by providing diversified LNG supplies, which are critical for the country's energy needs.
What is the significance of the Vlora LNG terminal project for Excelerate Energy?
The Vlora LNG terminal project is significant as it expands Excelerate's market presence and provides essential LNG supply solutions for Europe.
What future collaborations are expected from the MOU between Excelerate Energy and Overgas?
Future collaborations may involve additional agreements for LNG supply and infrastructure development to improve the natural gas framework in the region.
