Page 11 - GLNG Week 01

GLNG EUROPE GLNG
Greece’s DEPA,
Bulgaria’s
Bulgartransgaz to
buy into new LNG
import terminal
INVESTMENT
GREEK gas utility DEPA is set to snap up a share in a new floating LNG import project due to be developed near Alexandroupolis.
DEPA said on December 23 that its board had signed off on the decision to acquire a 20% stake in Gastrade, which wants to develop the North- ern Greece floating storage and regasification unit (FSRU). The deal will need approval from regulators.
The Northern Greece FSRU is a lynchpin of the country’s energy strategy, helping it to diver- sify its gas supply and establish itself as a major hub. It is listed as an EU project of common interest (PCI), entitling it to EU funding and eased regulation.
The facility is to have a regasification capac- ity of 22.7mn cubic metres per day (8.3bn cubic metres per year) – far surpassing Greece’s annual gas consumption of around 4.7 bcm. The excess gas will be supplied across the Balkans via the 3 bcm per year Interconnector Greece-Bulgaria (IGB), due on stream this year.
“The terminal significantly upgrades Greece’s geopolitical position as an energy gateway to South-eastern Europe and a regional energy hub,” DEPA said in a statement. “Through the participation in the equity of Gastrade, we assume an active role in the implementation of the project.”
A final investment decision (FID) on the plan is expected in the third quarter of 2020, with commercial operations now slated to start in September 2022 – more than a year behind schedule.
The Northern Greece FSRU will be Greece’s second LNG terminal, joining the Revithoussa plant launched two decades ago and operated by Greece’s National Natural Gas System Oper- ator (DESFA). Greece also sources gas from Russia and will shortly begin receiving supplies from Azerbaijan via the Southern Gas Corridor (SGC).
The new FSRU will be anchored 10km off the coast of Alexandroupolis, connected to the national gas grid via a 28-km pipeline. In addi- tion to its regasification capability, it will have an
The Northern Greece FSRU is a lynchpin of the country’s energy strategy, helping it to diversify its gas supply and establish itself as a major hub.
LNG storage capacity of 170,000 cubic metres. Gastrade, a division of Greek energy group Copelouzos, courted several investors for the project before agreeing a deal with DEPA. Share- holders at Romania’s Romgaz approved in prin- ciple the purchase of a 20% stake in the firm in
September last year.
Bulgaria buys in
In early January, it emerged that Bulgaria’s state- owned gas network operator Bulgartransgaz would also acquire a 20% stake in Gastrade. This was confirmed by Bulgarian Prime Min- ister Boyko Borissov on January 8 following a meeting with the US ambassador to the country, Herro Mustapha.
The move is part of Bulgaria’s long-term energy strategy for diversification of gas sup- ply sources and routes and will also support the development of the project for Balkan gas hub, Borissov told a press conference following the meeting as quoted in a statement.
The stake will be acquired via a financing of the construction of the LNG terminal.
Meanwhile, Bulgaria’s state-owned natural gas supplier Bulgargaz will participate in the LNG terminal’s market test by booking between 300mn and 500mn cubic metres of natural gas per year for 3-5 years. This gas will be delivered through the IGB pipeline.
Bulgaria currently serves only as a transit route for Russian gas, but it has the potential to become a major trading centre thanks to a raft of new gas transport projects. A pipeline from Greece is due to start operations next year, allow- ing Bulgaria to receive gas from Greek LNG ter- minals. It will also be able to tap supplies from Azerbaijan once the Trans-Adriatic Pipeline (TAP) running through Greece and Albania to Italy is finished. Bulgaria is also helping Russia extend its TurkStream pipeline through its terri- tory and on to Central Europe.™
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