Page 5 - GLNG Week 49 2021

GLNG COMMENTARY GLNG

182-km pipeline will initially have a capacity Some of Greece’s gas infrastructure projects
of 3 bcm per year, potentially rising to 5 bcm have struggled to make headway, as the Euro-
per year if demand wants an expansion. The pean gas market has been amply supplied in
pipeline could also be connected to TAP in the recent years, raising questions about whether
future, providing greater regional energy secu- additional import capacity is necessary. Con-
rity and flexibility. cerns about how gas demand will fare during
Earlier this year the operators of TAP also the energy transition have also weighed down
undertook market tests for a potential expan- on prospects.
sion of the pipeline’s capacity to 14.4 bcm per However, the spike in gas prices this year
year, 17.1 bcm per year or as much as 20 bcm could trigger some major milestones at these
per year. But the tests failed to garner sufficient projects, as it has become clear that gas demand
interest, meaning the plan will remain on hold has defied expectations and recovered much
for the time being. faster since the coronavirus (COVID-19)
Meanwhile, Bulgaria and Serbia aim to break induced slump last year. Greece will still
ground shortly on the 171-km Nis-Dimitro-
vgrad pipeline and complete it in 2023. This Enter hydrogen have more gas
pipeline will establish a second route for Russian Moving forward, Greece also has plans to add import capacity
gas into Serbia arriving in Europe via the Turk- hydrogen to its energy mix. State-owned DEPA
Stream, but it will also be able to carry supplies is working with Advent Technologies and a than it needs for
from Greek LNG terminals. Serbia is notably group of major Greek energy companies to pro-
looking to overcome its coal dependence with duce green hydrogen in the Western Macedonia its own use if the
the construction of a series of gas power plants region. The project, known as White Dragon, has
along the routes of pipelines. an estimated investment cost of €8bn ($9bn). Alexandroupolis
Adequate storage capacity is also important On September 6, the Greek government project is
for establishing a gas hub, which is why Greece approved White Dragon and four other hydro-
is looking to convert the near-depleted off- gen projects in Greece. A joint ministerial realised.
shore South Kavala oilfield into a storage site. decision deemed the projects to be of common
Preliminary studies indicate that South Kavala interest to the EU, which could put them in line
could store up to 1 bcm of gas, with a maximum for financing from Brussels. The other projects
injection rate of 5 mcm per day and a maximum are Blue Med, to introduce hydrogen as a fuel
extraction rate of 4 mcm per day. It will be con- for buses and ships by 2025, Green HIPo, to
nected to TAP via a 2-km pipeline. develop hydrogen electrolysers and fuel cells,
The South Kavala licence is operated by Med- H2CAT Tanks, which aims to establish hydro-
iterranean gas producer Energean with a 100% gen storage, and H2CEM-Titan, which will look
interest. But the project is yet to be finalised. to deploy hydrogen in the cement industry.™

Week 49 10•December•2021 www. NEWSBASE .com P5