Power utility PPC, seeking a strategic role in Greece’s natural gas market, intends to submit a capacity reservation offer to an ongoing Alexandroupoli FSRU second-round market test for approximately 500 million cubic meters per year.
PPC has reached a decision and is preparing to submit its offer within the next few weeks, energypress sources informed.
A capacity reservation at the prospective Alexandroupoli FSRU in Greece’s northeast is crucial for PPC following its recent failure to secure slots in 2020 for the LNG terminal on the islet Revythoussa, just off Athens.
PPC’s Alexandroupoli FSRU interest is driven by two objectives, firstly, to cover natural gas needs at its gas-fueled power stations, and secondly, to trade gas in the wholesale market, like the sector’s other major players. Besides the Greek market, PPC also sees gas trading opportunities in the wider region of southeast Europe.
PPC is determined to establish its place in a sector being transformed by the development of major trans-boundary projects, namely TAP and IGB. Domestically, the Alexandroupoli FSRU and an underground gas storage facility at a depleted offshore gas field in the south Kavala region also offer major potential for PPC.
The Alexandroupoli FSRU market test has generated considerable interest – unofficial until now – seen easily covering terms set to ensure the project’s sustainability before any finalized investment decision is made for development.
Greek gas utility DEPA, now holding a 20 percent stake in the Alexandroupoli FSRU consortium, will definitely seek to reserve capacity. Bulgaria’s Bulgargaz, also a 20 percent shareholder, will participate in the second-round market test seeking an annual capacity of between 300 to 500 million cubic meters, according to a Reuters report.
Many of the first-round market test’s 20 participants, plus a number of new faces, have emerged for the procedure’s binding second round, sources informed.
First round Alexandroupoli FSRU offers more than doubled a total capacity of 5.5 bcm to reach 12.2 bcm.