Page 4 - GLNG Week 49 2021

GLNG COMMENTARY GLNG

Greece presses on with

Greek gas hub plans

Greece is developing significantly more gas import capacity

than it needs, in order to establish itself as a gas hub for

the region

POLICY THE European Commission announced on Trans-Adriatic Pipeline (TAP). Greece’s gas
November 29 it had cleared several investments import capacity already far exceeds its consump-
WHAT: in what is set to be Greece’s second LNG import tion, although the latter is growing.
Greece has made terminal, bringing the project one step closer to The country’s gas demand has been on an
progress with plans for a sanction decision. upward trend for several years despite recent
a second LNG import The EC said acquisitions in the project’s oper- economic difficulties as a result of the pandemic,
terminal. ator Gastrade by Greek gas companies DESFA and is set to continue growing as it phases out
and DEPA Commercial, Greek businesswoman coal-fired power. Coal accounted for 11% of its
WHY: Asimina-Eleni Copelouzou, Cypriot LNG car- primary energy supply in 2020 and about a fifth
The terminal will not only rier operator GasLog and Bulgarian gas trans- of its electricity generation. But climate commit-
supply Greece but also a mission operator Bulgartransgaz, did not raise ments as well as increased gas availability, lower
number of other Balkan antitrust concerns. import prices and higher carbon prices are spur-
countries. The project involves the deployment of a ring the country to move away from coal. In its
floating regasification and storage (FSRU) unit 2019 national energy plan, Greece committed
WHAT NEXT: off the coast of Alexandroupolis that will bring to a complete phase-out of coal in power gener-
The tight gas market ashore up to 5.5bn cubic metres of gas per year. ation by 2028, but has subsequently brought the
could spur progress Its developers hope to launch the facility in target forward to 2023.
at Greece’s gas 2023, but the timing will depend on when an Even with the surge in gas demand that the
infrastructure projects, FID has been reached. The project will comple- coal phase-out will bring about, Greece will still
and the country is looking ment the existing Revithoussa terminal, which have more gas import capacity than it needs
to bring hydrogen into the can import up to 6.3 bcm per year of gas. for its own use if the Alexandroupolis project
mix as well. is realised. But the construction of new gas
Hub plans links in the region will enable it to share some of
The Alexandroupolis facility will help Greece these supplies with other Balkan states, many of
fulfil its goal of establishing itself as a regional which also rely significantly on coal-fired power
hub for gas trade. In addition to LNG, the coun- and want to switch some of this to gas.
try already enjoys access to Russian gas as well The Greece-Bulgaria interconnector will
as Azeri supplies arriving in Europe via the link the Greek grid with that of Bulgaria. The

The Alexandroupolis
facility will help
Greece fulfil its goal of
establishing itself as
a regional hub for gas
trade.

P4 www. NEWSBASE .com Week 49 10•December•2021