DEPA confirms interest in Alexandroupoli FSRU project

DEPA, the Public Gas Corporation, has confirmed its interest to become involved in a prospective floating LNG terminal (FSRU) planned for Alexandroupoli, it became known during an energy conference staged at the northeastern port city just days ago.

The Alexandroupoli FSRU, a project to be developed by Gastrade, was a key subject at the event, whose proceedings included discussions between company officials. US support for the geopolitically significant FSRU was reiterated at the Alexandroupoli conference by the US Ambassador to Greece Geoffrey R. Pyatt.

The Alexandroupoli project’s development would facilitate US gas supply to the wider Balkan region and help reduce Russia’s dominance.

DEPA has requested a feasibility study for clarification of various details concerning the Alexandroupoli FSRU and also to help determine whether the objective of establishing the city as an energy hub should be pursued.

One issue requiring further thought is how the Alexandroupoli LNG terminal will be successfully added to Greece’s gas sector given that a third tank is currently being developed at the country’s only exisiting LNG facility at Revythoussa, an islet just off Athens.

Transportation cost issues also need to be taken into account. Reaching Alexandroupoli from Mediterranean waters requires an additional day or day and a half of sailing time compared to the Revythoussa location.

Funding issues as well as undetermined technical and financial matters also need to be worked on.

DEPA officials have ascertained the company’s willingness to participate in the Alexandroupoli LNG project but noted that the involvement’s terms are being closely examined.

Project authorities are looking to have the Alexandroupoli LNG relisted as a Project of Common Interest (PCI), which would enable EU funding and make possible the facility’s development. The EU generally supports projects promising energy diversification.

On a related front, the consortium looking to develop the Greek-Bulgarian IGB interconnection – which promises to benefit the Alexandroupoli LNG, and vice versa –  yesterday announced that five companies have expressed an interest to reserve respective pipeline capacities through a market test.