Gas importers who appear to have failed to secure slots at gas grid operator DESFA’s Revythoussa terminal for 2020, due to congestion caused by high demand, are expected to react, initially through formal written complaints to RAE, the Regulatory Authority for Energy, and DESFA, and, if needed, escalated action at the Competition Committee.
A finalized list of Revythoussa slot reservations for 2020 is expected to be announced by DESFA today. A preliminary list announced last week prompted complaints by importers who failed to make the cut.
DESFA opted to give priority to importers preparing to ship in bigger LNG quantities. The sidelined importers will await the finalized list before taking any action.
As a result of the higher demand for Revythoussa slots, DESFA, following public consultation, decided to sharply increased a penalty rate for unfulfilled terminal capacity reservations, as has often been the case in the past.
PPC and Motor Oil Hellas, two market players who imported a number of LNG shipments through the Revythoussa terminal in 2019, are among the companies left off the list for 2020.
The two companies contend other importers have submitted reservation applications representing more than double their required amounts in 2019 and, as a result, will not fully use these slot capacities.
Four players made successful bids. Of these, just one importer requested slots for 2020 that represent an LNG quantity anywhere near its requirements for the current year, sidelined firms have complained. Slots have been intentionally overbooked by some players to sweep rivals aside, they added.
A total of 18 LNG shipments to Revythoussa were made in 2018. The current year is expected to end with 35 shipments, while the initial schedule for 2020 includes 120 shipments.