Montenegro weighs LNG terminal and gas plants in Bar as US-led supply shift redraws Balkan energy map

Montenegro’s renewed consideration of gas-fired power plants and a liquefied natural gas terminal in the Port of Bar is becoming more than a domestic energy debate. It is unfolding alongside intensified United States efforts to expand LNG supply corridors into Southeast Europe as European governments accelerate diversification away from Russian gas dependence—placing the Adriatic coast, and potentially Montenegro itself, at the center of a wider regional realignment.

JERA feasibility study targets terminal and power generation

Montenegro’s government has already signed multiple memoranda of understanding with international energy companies regarding the possible development of an LNG import terminal in Bar alongside associated gas-fired generation capacity. The latest phase involves cooperation with Japanese energy giant JERA, which is conducting a comprehensive feasibility study covering the technical, commercial and financial viability of an LNG terminal and related gas-fired power plants in Montenegro.

Prime Minister Milojko Spajić said earlier this year that the study is expected to be finalized by mid-2026.

Potential plant scale, locations and investment range

Earlier studies by EPCG and the government examined multiple configurations for gas power plants ranging from 50 MW to 400 MW. Possible sites included Bar, Podgorica, Nikšić and Pljevlja. Estimated investment requirements were reported to range from approximately €233 million to €362 million, depending on plant scale and infrastructure configuration.

An alternative LNG gateway for Western Balkans

The strategic logic increasingly ties Montenegro’s project to broader regional restructuring. The United States has sought to position American LNG exports as a core alternative supply source for Central and Eastern Europe, while a group of Balkan and Central European countries signed a joint declaration in Washington earlier this year supporting expanded access to US LNG supplies and diversified gas import routes.

Montenegro was not among the formal signatories, but its ambitions align with that emerging architecture. A future LNG terminal in Bar could theoretically serve not only Montenegro but also parts of Serbia, Bosnia and Herzegovina, Kosovo and potentially Hungary—potentially shifting Montenegro from a relatively isolated electricity market toward a regional role as a gas transit and balancing node.

Serbia watches closely as it seeks diversification

For Serbia, the implications are particularly significant. President Aleksandar Vučić previously confirmed Serbian interest in accessing LNG imports through a future Bar terminal. The interest comes as Belgrade seeks to diversify supply options amid uncertainty around long-term Russian gas dependence and the evolving sanctions environment around NIS.

Gas returns despite decarbonization priorities

The debate also reflects a broader tension visible across Europe’s energy transition. While governments continue publicly prioritizing decarbonization, renewable energy and climate neutrality, many electricity systems are simultaneously turning back to gas-fired generation as a stabilizing technology designed to support grids facing rising wind and solar penetration.

In Montenegro’s case, urgency is heightened by system constraints: the country still relies heavily on hydropower variability and on the aging Pljevlja coal power plant, which faces mounting environmental scrutiny and EU compliance pressure. Gas generation is therefore being examined as a transitional balancing option intended to improve system flexibility, reserve margins and winter security of supply.

Supporters see security gains; critics warn of lock-in

Supporters argue that an LNG project could strengthen energy security, attract strategic infrastructure investment and potentially enable new industrial activity linked to gas logistics and regional supply chains. Some concepts also include potential future adaptability toward hydrogen or ammonia infrastructure.

Opposition remains substantial. Environmental organizations, local activists and some coastal municipalities have criticized the plans on concerns that they could lock Montenegro into long-term fossil fuel dependency at a time when Europe is accelerating decarbonization policies. More than 40 NGOs and civic organizations have publicly opposed construction of an LNG terminal and gas-fired power plant in Bar.

Port of Bar: logistics opportunity versus tourism risk

The Port of Bar itself has become central to the dispute. Geopolitically, it offers Montenegro an opportunity to reposition within regional energy logistics. Environmentally, critics warn that industrial LNG infrastructure could fundamentally change sensitive tourism and ecological zones along the Adriatic coast.

LNG economics remain uncertain

Financial viability is another unresolved issue. The economics of LNG in Europe have become more volatile since the energy crisis, meaning future profitability will depend heavily on long-term gas pricing, regasification utilization rates, regional pipeline connectivity and how quickly renewables deployment progresses across the Balkans.

A choice about Montenegro’s role in Southeast Europe

Even with these uncertainties, Montenegro’s gas strategy appears increasingly linked to how Europe’s energy geography may be reshaped over time. As Western Balkan systems evolve from peripheral networks into contested infrastructure corridors—connecting LNG imports, electricity interconnections, renewable balancing capacity and future industrial decarbonization supply chains—the question for Montenegro becomes less about whether it builds an LNG terminal or a gas plant alone.

The decision also concerns what role the country wants to play: remaining primarily oriented toward a tourism-dependent coastal economy or positioning itself as a broader regional infrastructure—and energy-security—platform integrated into Southeast Europe’s shifting geopolitical map.