Montenegro is revisiting plans for the construction of gas-fired power plants and a liquefied natural gas (LNG) terminal in the Port of Bar, reflecting a significant shift in the geopolitical and energy-security landscape across the Balkans and Central Europe. This renewed focus coincides with heightened efforts by the United States to enhance LNG supply routes into Southeast Europe, as countries in the region seek to reduce their reliance on Russian gas.
The Adriatic coast, particularly areas in Croatia and potentially Montenegro, is emerging as a viable alternative LNG gateway for the Western Balkans. The Montenegrin government has entered into several memoranda of understanding with international energy firms to explore the development of an LNG import terminal in Bar, alongside associated gas-fired power generation capabilities.
Currently, cooperation with Japan’s JERA is underway, which is conducting a detailed feasibility study on the technical, commercial, and financial aspects of establishing an LNG terminal and related gas-fired power plants in Montenegro. Prime Minister Milojko Spajić has indicated that this study is anticipated to be completed by mid-2026.
Previous studies by EPCG and government analyses have evaluated various configurations for gas power plants ranging from 50 MW to 400 MW, with potential sites identified in Bar, Podgorica, Nikšić, and Pljevlja. The projected investment for these projects varies between approximately €233 million and €362 million, depending on the scale and infrastructure requirements.
This initiative aligns with broader regional energy restructuring efforts. The United States has intensified its push to position American LNG exports as a key alternative supply for Central and Eastern Europe. Earlier this year, several Balkan and Central European nations signed a declaration in Washington advocating for increased access to U.S. LNG supplies and diversified import routes.
While Montenegro did not formally sign this declaration, its ambitions regarding LNG align with these regional developments. A future terminal in Bar could potentially supply not only Montenegro but also parts of Serbia, Bosnia and Herzegovina, Kosovo, and possibly Hungary, thus transforming Montenegro from a relatively isolated electricity market into a crucial regional gas transit hub.
Serbia has shown particular interest in utilizing an LNG terminal at Bar to diversify its supply sources amid uncertainties surrounding long-term dependence on Russian gas and evolving sanctions affecting NIS.
This discourse also highlights a contradiction within Europe’s energy transition narrative. Despite public commitments to decarbonization and renewable energy initiatives, many electricity systems are reverting to gas-fired generation as a stabilizing solution to support grids increasingly reliant on wind and solar energy.
In Montenegro’s case, reliance on hydropower variability coupled with challenges posed by the aging Pljevlja coal power plant, which faces environmental scrutiny and EU compliance issues, makes gas generation an appealing transitional option. This approach aims to enhance system flexibility, reserve margins, and security of supply during winter months.
Proponents of the LNG initiative argue that it could bolster energy security, attract strategic investments in infrastructure, and foster new industrial activities related to gas logistics and regional supply chains. Some proposals also consider future adaptability towards hydrogen or ammonia infrastructure.
However, significant opposition persists. Environmental groups, local activists, and segments of Montenegro’s coastal municipalities have voiced strong objections against the LNG projects, expressing concerns that they may entrench long-term fossil fuel dependency at a time when Europe is advancing decarbonization efforts. Over 40 NGOs and civic organizations have publicly opposed the construction of an LNG terminal and gas-fired power plant in Bar.
The Port of Bar plays a central role in this debate. Geopolitically, it offers Montenegro an opportunity to redefine its position within regional energy logistics. However, critics warn that industrial LNG infrastructure could adversely impact one of the Adriatic coast’s sensitive tourism and ecological regions.
The financial viability of these projects remains uncertain due to fluctuating LNG economics in Europe since the recent energy crisis. Profitability will largely depend on long-term gas pricing dynamics, regasification utilization rates, regional pipeline connectivity, and the pace of renewable energy deployment across the Balkans.
Despite these uncertainties, Montenegro’s strategy regarding gas increasingly appears interconnected with a broader reconfiguration of Europe’s energy landscape. The Western Balkans are gradually transitioning from peripheral energy systems into contested corridors linking LNG imports with electricity interconnections, renewable balancing capacities, and future industrial decarbonization supply chains.
Consequently, discussions surrounding LNG in Montenegro extend beyond merely establishing a terminal or power plant; they encompass the country’s decision on whether to prioritize its identity as a tourism-centric coastal economy or evolve into a regional infrastructure hub integrated within the changing geopolitical framework of Southeast Europe.
