Power utility PPC, making a dynamic entry into Greece’s natural gas market, is preparing to seek a capacity in the prospective Alexandroupoli FSRU through an upcoming second-round market test.
In another move two months earlier, PPC launched a range of retail energy products involving gas.
PPC is determined to reserve slots at the Alexandroupoli FSRU, northeastern Greece, after failing to secure a capacity at Greece’s existing Revythoussa LNG terminal just off Athens.
A first-round market test for the Alexandroupoli FSRU was completed at the end of last year. A total of 24 companies submitted non-binding bids for a total of up to 12.2 bcm per year, exceeding the facility’s planned annual regasification capacity of 5.5 bcm.
The power utility needs LNG quantities to supply its gas-fueled units and also sell gas in the wholesale market, like the market’s other major players.
PPC sees potential in Greece’s gas market, which could develop into a gas hub for supply to the wider southeast European region.
Greece’s gas market is headed for an upgrade to result from the completion of the TAP and IGB international gas transmission projects, as well as the potential to be offered by the Alexandroupoli FSRU and the offshore south Kavala region’s underground gas storage facility, a project to be developed through a conversion of a depleted natural gas field.
In the retail energy market, PPC is looking to offset its shrinking electricity role through gas-related trading activity. The power utility wants to make the most of its existing client base in electricity, numbering approximately 7 million customers.