The Adriatic-Ionian Pipeline (IAP) and the planned LNG terminal in Bar are pivotal projects that could greatly influence Montenegro’s energy landscape, enhance stability and offer long-term benefits, according to Admir Šahmanović, Montenegro’s Minister of Mining, Oil, and Gas.
In a recent interview with Pobjeda, Šahmanović emphasized that these projects not only boost energy security but also improve infrastructure and foster regional cooperation.
Šahmanović outlined the benefits of the IAP, noting its potential impact on energy diversification and economic growth.
“Connecting to the Adriatic-Ionian Pipeline would allow Montenegro to diversify its energy sources and explore potential gas reserves in our offshore areas. This would enhance energy supply stability and security, particularly in response to market disruptions or geopolitical tensions. Additionally, the pipeline could drive economic development by creating jobs during both its construction and long-term operation,” Šahmanović explained.
The pipeline could also reduce energy costs, potentially attracting new investments in industry and infrastructure.
Connecting Montenegro to regional and broader energy markets through the pipeline would facilitate greater regional cooperation in the energy sector.
“This could lead to better political and economic integration of the Western Balkans with the European Union (EU). Moreover, as a transit country in the regional energy corridor, Montenegro could increase its geopolitical significance, yielding international political and economic benefits,” Šahmanović added.
Another major focus for the Ministry is the establishment of an LNG (liquefied natural gas) terminal in Bar.
“This project is strategically important for Montenegro, with long-term positive effects on energy security, the economy, environmental protection, and regional cooperation. An LNG terminal would provide access to the global LNG market, offering greater flexibility in energy supply. The Port of Bar, strategically located on the Adriatic Sea, could become a regional energy hub for distributing LNG throughout the Western Balkans and beyond,” Šahmanović said.
The terminal would generate additional revenue through LNG transit, storage, and transport, significantly benefiting the port’s operations and boosting Montenegro’s geopolitical profile.
“Introducing LNG technology could stimulate the development of new technologies and expertise in Montenegro’s energy sector, strengthening the country’s technological foundation. It would also create a basis for a potential gas-fired power plant, which could serve as an alternative to the Pljevlja Thermal Power Plant,” Šahmanović noted.
The Ministry’s key tasks include implementing a crucial milestone for closing Chapter 15, which deals with the security of oil product supply.
“The Law on the Security of Oil Product Supply will soon be adopted through an expedited procedure, and the technical documentation for reconstructing oil storage facilities in Bar is in progress. Besides reconstructing the Bar storage, which is insufficient for mandatory fuel reserves, we plan to upgrade tanks in Bijelo Polje,” Šahmanović said.
These improvements will ensure adequate storage capacity and enhance market competitiveness for Montenegro Bonus, the only state-owned company handling oil products.
Šahmanović also announced updates to the Action Plan for forming oil reserves. Following the law’s adoption, a legal framework will be established for acquiring initial reserves worth six million EUR, funded by direct budget support from the European Commission.
Oil reserves are essential for energy security, market stabilization in case of disruptions, fulfilling international obligations, and protecting the economy from sudden changes in supply and prices.
Šahmanović highlighted the importance of hydrocarbon exploration for Montenegro’s future.
“Discovering hydrocarbons in Montenegro’s offshore areas could lead to the development of a new industry, significantly improving the country’s standard of living and economic growth. We are preparing a public call for 3D exploration of Montenegro’s offshore, aiming to enhance our understanding of hydrocarbon potential, particularly focusing on gas prospects,” Šahmanović said.
He added that mining has long been undervalued and misunderstood in Montenegro. There is a misconception that the sector lacks potential and is harmful to the environment.
“We intend to change this perception. We aim to introduce socially responsible mining principles, collaborate with communities and institutions to develop sustainable models, and create a business environment that attracts reputable investors who will respect environmental standards and invest in Montenegro,” Šahmanović concluded.
