Energy and Natural Resources Update: North Macedonia

North Macedonia Joins the Energy Project Alexandroupolis

On 2 October 2020, the Prime Minister of announced that the country will join the construction of the terminal for natural in Alexandroupolis, Greece. Gastrade, the Greek utility company developing the Alexandroupolis LNG terminal, has provided their support to include North Macedonia in the project. The terminal, which is expected to become operational in 2023, will improve the energy security across the region and promote the development of a competitive regional gas trading hub.

Participation in this project will provide an opportunity for permanent supply of natural gas to North Macedonia from Azerbaijan, and a connection to the LNG terminals in Greece. In the future, North Macedonia could distribute natural gas in the countries from the region. This will pave the way for a continuous and independent gas supply with competitive prices, which plays into the energy strategy of the country

The connection to the gas network with Greece is expected to cost around EUR 55 million, with EUR 13 million already provided by European funds.

The US Assistant Secretary of State for Energy Resources, Mr. Francis Fannon, has expressed USA’s support of the project.

Additionally, Hellenic Petroleum, one of the largest oil companies in the Balkans, has expressed an interest in re-starting and upgrading the oil pipeline Thessaloniki – Skopje, making Skopje a centre for oil derivatives. As a reminder, the transportation of oil through this pipeline stopped seven years ago when the oil refinery Okta stopped operating as a refinery

 

 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.