Montenegro’s Minister of Mining, Oil and Gas, Admir Šahmanović, has announced ambitious plans to explore the nation’s seabed and advance significant energy projects. In an interview with Bankar, Šahmanović highlighted the importance of continued research due to the numerous wells already drilled in the Adriatic Sea. He underscored the need for deeper exploration to fully understand Montenegro’s seabed resources.
Šahmanović emphasized that if oil and gas reserves are discovered, the Adriatic-Ionian Pipeline (IAP) project would become crucial. He noted the importance of reviewing and updating the existing conceptual design and integrating it with the Southern Gas Corridor, which connects East and West Europe via the Trans-Adriatic Pipeline (TAP) and IAP.
“Connecting to the Adriatic-Ionian Pipeline would diversify Montenegro’s energy sources and allow for the development of potential gas resources found in our seabed,” Šahmanović stated.
The Ministry is also prioritizing the construction of a liquefied natural gas (LNG) terminal in Bar, a project that would grant Montenegro access to the global LNG market and enhance energy supply flexibility.
Šahmanović pointed out that the mining sector has often been overlooked, with misconceptions that Montenegro lacks mineral potential and that mining is environmentally damaging. He argued that mining has significant developmental potential for the country.
What are the main objectives of the new Ministry of Mining, Oil, and Gas, and what goals are you setting for the near future?
Our government is focused on advancing Montenegro’s path to European Union (EU) membership, a high-priority goal that requires closing key negotiating chapters. A significant milestone is the adoption of the Law on the Security of Supply of Petroleum Products, which is set to be fast-tracked through Parliament. The technical documentation for reconstructing the oil storage facilities in Bar is also in preparation.
Reconstructing these facilities, along with those in Bijelo Polje, will address storage deficiencies and boost market competitiveness for Montenegro Bonus, the state-owned company managing petroleum products.
Following the law’s adoption, we will develop an Action Plan for oil reserves, with initial purchases funded by a six-million-euro grant from the European Commission. This initiative aims to enhance energy security, stabilize the market, and protect the economy from supply disruptions and price fluctuations.
We will also focus on strengthening the Geological Research Institute and the Hydrocarbon Administration to improve decision-making and information exchange.
Key state projects, including the relocation of the Ćehotine Riverbed, will receive accelerated attention to ensure stable coal supply to the Pljevlja Thermal Power Plant while preserving natural resources.
To combat illegal trade and enhance control over petroleum products, we plan to implement a nano-technology marking system for liquid fuels. This initiative aims to improve quality, prevent abuses, and ensure market discipline.
How do you plan to develop the mining sector in Montenegro? Are there any specific projects or investments on the horizon?
Montenegro has untapped potential in its mineral resources, and we need to address misconceptions about mining being harmful and lacking value. We aim to implement socially responsible mining practices, engage with the community, and attract reputable investors who will adhere to environmental standards.
We are particularly focused on the development of cement and gypsum factories in Pljevlja, which would significantly impact both the local and national economy. Pljevlja’s large marl reserves, estimated at 90 million tons, provide a strong foundation for cement production. This project is expected to advance Montenegro’s economy and transition efforts, particularly by removing marl dumps and meeting environmental standards.
What steps will you take if oil and gas resources are discovered, and when can we expect a new public call for exploration concessions?
Exploring hydrocarbons is vital for Montenegro, as discovering resources could lead to substantial economic growth. We are preparing a public call for 3D exploration of Montenegro’s seabed to gain more knowledge about potential gas prospects.
The European Union recognizes gas as a transitional energy source until 2050. Technologies to reduce environmental impact, such as CO2 capture and hydrogen integration, are also being developed.
We are working to secure credible partners and financing for these complex and costly research efforts. The discovery of hydrocarbons could lead to the Adriatic-Ionian Pipeline (IAP) project, which would enhance energy supply stability and diversify sources.
What is the most strategically important project for Montenegro, and how will it impact energy security?
The construction of the Adriatic-Ionian Pipeline (IAP) and the development of an LNG terminal in Bar are among Montenegro’s most strategic projects. The LNG terminal would open access to the global market, improve energy security, and enhance regional energy infrastructure. It could transform the Port of Bar into a key energy hub, creating economic opportunities and strengthening Montenegro’s geopolitical position.
Will you prioritize cooperation with other countries or companies, and how do you view Montenegro’s role in regional and international energy projects?
Yes, we aim to collaborate with leading global companies in oil and gas exploration to attract investment and technology. Montenegro seeks to be a reliable partner in regional and international energy projects, contributing to energy security and infrastructure development in the Western Balkans and Europe.
