Kavala gas storage facility to reenter PCI list, decisions today

The development of an underground natural gas storage facility at a depleted deposit in south Kavala, removed from the EU’s list of Projects of Common Interest (PCIs) two years ago, is expected to be reincluded, which would provide the project with access to EU funding, while the Alexandroupoli FSRU, also in the country’s north, stands a decent chance of being added to the list, when regional working groups gather for a Brussels meeting today to make final decisions on the content of the 3rd PCI list. This finalized list will then need to be endorsed by the European Commission.

A first list of PCIs was published in 2013 and a second in 2015.

Energy projects are selected for PCI inclusion based on a number of criteria, including their impact on at least two EU countries, as well as their ability to enhance EU market integration, increase competition and security of supply.

The Alexandroupoli FSRU, whose development would facilitate LNG supply, especially American, to the wider Balkan region and help reduce Russia’s dominance, was not included on a provisional PCI list prepared on June 30 as a lead-up to the latest gathering of regional working groups.

The Greek government, maneuvering in search of political support for PCI inclusion of the Alexandroupoli LNG terminal, has received considerable European and US backing for the project, seen as one of strategic importance.

Kavala gas storage facility and Alexandroupoli LNG terminal aside, all other PCIs of Greek interest, five in total, should maintain their places on the updated list, energypress sources informed.

The Poseidon submarine gas pipeline linking Greece and Italy is one of these. This pipeline is planned to be incorporated with two other prospective projects, Turkish Stream, to transmit Russian natural gas to the region, and East Med, to carry southeast Mediterranean natural gas deposits along a route stretching from Israel to Europe.

East Med is also expected to keep its place on the PCI list.

So, too, is the submarine Euro Asia Interconnector, to link the Greek, Cypriot and Israeli electricity networks.

The Greek-Bulgarian IGB Interconnector, promising a cross-border gas pipeline link, and the Tesla natural gas pipeline, planned to connect with Turkish Stream for a vertical crossing through Greece, the Former Yugoslav Republic of Macedonia (Fyrom), Serbia and Hungary, make up the other two projects seen holding on to their PCI list places.