Montenegro is actively exploring the possibility of constructing gas-fired power plants and a liquefied natural gas (LNG) terminal at the Port of Bar. This initiative places Montenegro at the forefront of a significant geopolitical and energy-security transformation occurring in the Balkans and Central Europe. The renewed focus on these energy projects coincides with heightened efforts from the United States to enhance LNG supply routes into Southeast Europe, as nations seek to reduce their reliance on Russian gas.
The strategic positioning of the Adriatic coast, particularly Croatia and potentially Montenegro, as an alternative LNG entry point for the Western Balkans is becoming increasingly apparent. The Montenegrin government has entered into several memoranda of understanding with international energy firms to develop an LNG import terminal in Bar, paired with necessary gas-fired generation capacity.
Currently, Japan’s JERA is conducting a detailed feasibility study assessing the technical, commercial, and financial aspects of establishing an LNG terminal along with associated power plants in Montenegro. Prime Minister Milojko Spajić has indicated that this study is expected to be completed by mid-2026.
Initial assessments by EPCG and governmental studies have explored various configurations for gas power plants ranging from 50 MW to 400 MW. Potential sites under consideration include Bar, Podgorica, Nikšić, and Pljevlja, with estimated investment costs between approximately €233 million and €362 million, influenced by plant size and infrastructure requirements.
This project aligns with broader regional energy restructuring efforts. The U.S. has intensified its initiatives to position American LNG exports as a key alternative supply source for Central and Eastern Europe. Earlier this year, a coalition of Balkan and Central European nations endorsed a declaration in Washington advocating for enhanced access to U.S. LNG supplies and diversified gas import pathways.
While Montenegro did not formally sign this declaration, its ambitions regarding LNG development are consistent with emerging regional trends. A potential LNG terminal in Bar could serve not only Montenegro but also parts of Serbia, Bosnia and Herzegovina, Kosovo, and possibly Hungary, thereby transforming Montenegro from a relatively isolated electricity market into a crucial regional gas transit hub.
The implications for Serbia are particularly significant. President Aleksandar Vučić has expressed interest in utilizing future imports from the proposed Bar terminal as Belgrade seeks to diversify its energy sources amidst uncertainties surrounding long-term dependence on Russian gas and evolving sanctions affecting NIS.
This ongoing debate reflects an inherent contradiction within Europe’s energy transition narrative. Governments profess commitments to decarbonization, renewable energy adoption, and climate neutrality while simultaneously reverting to gas-fired generation as a stabilizing technology that supports grids increasingly reliant on intermittent wind and solar resources.
In Montenegro’s context, reliance on hydropower variability coupled with the aging Pljevlja coal power plant, which faces growing environmental scrutiny and compliance challenges from EU regulations, makes the exploration of gas generation increasingly urgent. Gas is being considered as a transitional solution that could enhance system flexibility, reserve margins, and winter supply security.
Proponents of the LNG initiative argue it could bolster Montenegro’s energy security while attracting critical infrastructure investments and fostering new industrial activities linked to gas logistics within regional supply chains. Some project concepts even envision future adaptability towards hydrogen or ammonia infrastructure.
However, substantial opposition exists against these plans. Environmental groups, local activists, and segments of coastal municipalities have voiced strong criticisms regarding the potential long-term fossil fuel dependency associated with constructing an LNG terminal and gas-fired power plant in Bar at a time when Europe is advancing its decarbonization policies. Over 40 NGOs have publicly opposed these developments.
The Port of Bar has emerged as a focal point in this discourse. Geopolitically, it offers Montenegro an opportunity to redefine its role within regional energy logistics; environmentally, critics caution that establishing industrial LNG infrastructure could significantly disrupt one of the Adriatic coast’s delicate tourism ecosystems.
The financial viability of such projects remains uncertain due to increased volatility in European LNG economics since the onset of the energy crisis. Future profitability will largely hinge on long-term gas pricing dynamics, regasification utilization rates, pipeline connectivity across regions, and the pace at which renewables are deployed throughout the Balkans.
Despite these uncertainties, Montenegro’s strategy regarding natural gas appears intertwined with broader shifts in Europe’s energy landscape. The Western Balkans are gradually transitioning from peripheral systems into contested corridors that connect LNG imports with electricity interconnections alongside renewable balancing capacity essential for future industrial decarbonization initiatives.
The ongoing discussions surrounding LNG development signify more than just plans for new facilities; they reflect Montenegro’s strategic choice between remaining focused on tourism or evolving into a vital regional infrastructure player within Southeast Europe’s changing geopolitical framework.
