By Zef Preçi
Tirana Times, September 14, 2026 – According to media reports in recent days, Albania and the U.S. company Argent LNG have signed a non-binding memorandum of understanding to assess the possibility of building a major onshore liquefied natural gas storage and regasification terminal on the Albanian coast.
The project is presented as a regional gas supply hub, primarily serving the Western Balkans and Southeast Europe rather than Albania’s domestic market alone. In principle, any initiative aimed at diversifying energy sources, strengthening infrastructure links and increasing Albania’s role in the regional energy market deserves serious consideration.
What remains unclear, however, are the concrete benefits for the Albanian economy, the possible environmental impact and the consequences that such a project could have for the development of tourism, particularly along the Vlora coast, which has been mentioned as one of the possible areas for its construction. Equally important is the need to clarify how this initiative, originating outside the European space, is compatible with Albania’s European Union integration process and with European policies on the energy and climate transition.
The lack of transparency on the part of the government and Prime Minister Edi Rama may create public and economic uncertainty. If these uncertainties are not addressed in time, they could undermine not only the credibility of the project, but also turn it into an initiative perceived as a lobbying instrument serving short-term political interests rather than a means of accelerating the country’s economic and social development.
The Government of Albania and Argent LNG are the parties that have signed the memorandum. The document is non-binding and provides for a joint assessment of the project; it does not imply that the terminal will necessarily be built, nor does it guarantee gas purchases or establish binding supply contracts.
The proposed terminal would be an onshore facility for receiving LNG, storing it and regasifying it, meaning converting the gas from liquid back into gaseous form. LNG would arrive by ship, be stored at the terminal, regasified and then distributed to regional markets through the gas pipeline network.
The proposed capacity could reach approximately 5 million tonnes of LNG per year, together with significant storage capacity. The terminal is expected to be located on the Albanian coast, although the precise location has not yet been made public.
There is still no confirmed timetable for the start of construction or completion of the project. According to preliminary plans, the development of the terminal could be linked to Argent LNG’s objective of beginning its first LNG shipments from Port Fourchon, Louisiana, around 2030.
Several U.S. institutions could potentially be involved in financing and developing the project, including the U.S. Trade and Development Agency, the U.S. International Development Finance Corporation and the Export-Import Bank of the United States.
The strategic logic of the project is linked to Albania’s geographical position and its potential connection to several important gas corridors. The first is the Trans Adriatic Pipeline, TAP, which transports gas from the Caspian region through Greece and Albania to Italy. The second is the planned Ionian Adriatic Pipeline, IAP, which aims to extend gas connections northward through the Western Balkans. The third is the Fier-Vlora corridor, as a potential element of Albania’s domestic gas infrastructure.
If the project proves technically and economically feasible, it could create an additional route for importing LNG originating from the United States and could contribute to the diversification of regional gas supplies. This is an important objective for the region’s energy security, particularly in conditions of continued uncertainty in European energy markets.
Argent LNG has stated that regional arrangements for reverse gas flows and gas swaps could also create opportunities to support Ukraine. However, this remains a long-term prospect, dependent on infrastructure development, commercial agreements, regional demand and the project’s financial sustainability.
The announcement is still at an early stage. The memorandum does not determine the final location of the terminal or the port where it would be built. Neither the cost of the investment, the timetable for the start of construction nor the expected completion date has been made public.
Likewise, it is still unknown whether secured supply volumes exist, whether there are long-term gas purchase agreements, guaranteed financing or final technical arrangements for connections to TAP, IAP or other pipelines. Before the project can be considered viable, its technical feasibility, financial sustainability, potential regional market and environmental impact must be seriously assessed.
In particular, the public has the right to know what location is being proposed and what alternatives have been considered; what the full cost of the project will be and on what basis it will be financed; whether the state budget and local communities will benefit from the investment and to what extent; what the expected effects will be on tourism, fishing, the marine environment and economic activity in the coastal area; whether the project is compatible with Albania’s commitments on clean energy, climate policy and European Union integration; and whether an independent cost-benefit analysis exists and will be made public for citizens and experts.
For Albania, the project could bring investment in infrastructure, development of port activity and the gas pipeline network, and a stronger role for the country in regional energy transit. It could also increase Albania’s geopolitical importance in European discussions on energy security.
But the public benefit should not be taken for granted. It must be demonstrated through independent studies, full transparency regarding the agreements, genuine consultation with affected communities and rigorous compliance with environmental and competition standards.
A terminal with a capacity of up to 5 million tonnes of LNG per year would be large compared with Albania’s domestic demand. This means that its economic sustainability would depend mainly on its ability to secure long-term buyers in the markets of the Western Balkans and Southeast Europe, as well as on functional and competitively priced connections to cross-border gas networks.
Ultimately, Albania does not need projects promoted simply because of their size, the origin of the investor or their political use. The country needs investments that serve the public interest, create sustainable value for the national economy, respect the environment and strengthen Albania’s alignment with European development standards.
