Since I did not found any wordpress plugin which is closest to what I want, I decided to write my own version of Google PicasaWeb plugin. It will sit there retrieving albums and pictures from my PicasaWeb account and display it all on this blog.
Furthermore, it will display a number of random albums on the sidebar. When visitors click on that album, it will direct them to the gallery page, where more albums are available.
I will have it running for few days before making it available for download.
A DEMO is here.