The implementation of a Capacity Allocation Mechanism (CAM) at Greece’s gas entry point in Sidirokastro, on the Greek-Bulgarian border, has led to increased trading activity.
The mechanism is designed to facilitate gas transport and trading in the EU.
As a result, a greater number of importers and suppliers are now purchasing natural gas amounts at this border point. More specifically, three gas companies have imported gas amounts from the Sidirokastro gateway, whose capacity was fully covered until recently.
However, full implementation of an interconnection agreement, still encountering practical issues, is needed to further facilitate trade.
Besides DEPA, the Public Gas Corporation, two more firms, Promitheas (Copelouzos, Gazprom) and M&M (Mytilineos, Motor Oil Hellas) are now actively involved in gas imports. ELFE has also purchased gas amounts at the border. So, too, have a number of traders and industrial consumers, such as the energy firms Heron and Cedalion, as well as Yioula, Greece’s biggest glasswork industry, and Elval (Hellenic Aluminium Industry).
The increased activity is reshaping market shares. Promitheas currently holds approximately 20 percent of the gas import market, while M&M, supplying industrial consumers, has also gained a considerable share.
Increased import potential is also possible at Kipoi, the Greek gas system’s second-biggest entry point (to and from Turkey). Negotiations concerning the implementation of an interconnection agreement and CAM system at this entry point are now in progress.
Efforts have been made in the past to forge an opening towards the east. A big market, Turkey would offer major trading opportunities if obstacles are cleared.