The energy ministry’s leadership is hastening efforts to shape financing models for Greek PCI-classified natural gas projects as the European Investment Bank is expected to stop funding fossil-fuel projects beyond 2021.
The EIB had initially decided to stop funding all fossil fuel projects, including gas projects, as of 2020 before deciding to extend the period.
Greece, preparing major gas projects, had opposed the EIB decision. As part of this challenge, deputy energy minister Gerassimos Thomas held talks with the financial institution’s board of directors.
The revision now enables EIB funding for certain PCI-classified fossil fuel projects until the end of 2021. Thereafter, criteria will be applied to determine whether financial support can continue to be provided for projects on an individual basis.
Significant Greek natural gas projects are expected to be mature for financing and development around or beyond 2021.
The country is preparing to co-develop the East Med pipeline with Cyprus and Israel and also develop an FSRU in Alexandroupoli, northeastern Greece and an underground gas storage facility at a depleted natural gas field in the offshore South Kavala region.
The availability of EIB financing promises to prove crucial in determining the commercial viability of these projects.