Alexandroupoli FSRU

DEPA, pivotal for Greek energy plan, pushing ahead internationally

Posted on by admin

Through its strategic involvement in an array of pipeline and infrastructure projects, Greek gas utility DEPA is becoming a key driver of Greece’s geopolitical upgrade and the diversification of supply sources for the wider region of South-East Europe.

DEPA is establishing its position in the region through a series of significant international projects such as the acceleration of IGB pipeline construction, participation in the IGI Poseidon pipeline  interconnecting Greece and Italy, and, surely, booking capacity in TAP which, from 2020 onwards, will transport Caspian gas to Europe.

Developments around East Med Pipeline are also rapid, with the most recent being IGI Poseidon’s (the 50% – 50% JV between DEPA S.A. and Edison S.p.A ) BoD decision to fast-track the completion of all pending stages that will bring the project to maturity.  The €70 million Feasibility Study is being accelerated, along with every other stage, to complete the East Med pipeline’s design, which will also pave the way for the final investment decision.

All the above are just one part of DEPA’s multifaceted international activity. Prior to that, in October, a bilateral agreement was signed in Sofia for the start of IGB pipeline construction, a project overseen by ICGB AD, in which DEPA has a 25% stake.

The project is expected to go into operation in July 2021, with an initial capacity of 3 billion cubic meters. At first, the entire load of gas will come from TAP that will go into operation within 2020, delivering Azeri gas to European markets, in which DEPA has booked capacity of 1 billion cubic meters. Thus, through IGB, the company will supply the Bulgarian market with Caspian gas, “breaking” for the first time the existing Russian monopoly.

Another major development took place just yesterday, when the company’s Board of Directors approved the participation of DEPA, with a 20% stake, to the equity of GASTRADE, the company developing the FSRU project in Alexandroupolis.

The Terminal is complementary to the IGB pipeline and consists of an FSRU (Floating Storage Regasification Unit), anchored 10 km off the coastal area of ​​Alexandroupolis, with storage capacity up to 170,000 cubic meters of LNG and 22.7 million cubic meters daily regasification capacity, per day (8.3 billion m3 / year), as well as a 28 km long onshore and subsea pipeline system.

The international presence of the company is also enhanced by the Greek-Italian energy interconnection through the IGI Poseidon pipeline, as well as the CYNERGY program that “breaks” Cyprus energy isolation by establishing a natural gas supply chain in the country.

Apart from its participation in international projects, equally important are the company’s long-term supply contracts with Russian Gazprom, Turkish BOTAS, Algerian Sonatrach, IGSC (Azerbaijan) through the TAP pipeline, as well as the procurement of significant quantities of LNG through the global SPOT market, at competitive prices.

DEPA’s CEO, Konstantinos Xifaras, summed up the company’s international role:

“For thirty years, DEPA has been a leading player in the Balkan energy sector, as well as an integral part of the European strategy for energy diversification and security of supply both of Greece and Europe.

At the same time, by deploying multilayered energy diplomacy and participating in major international projects, DEPA establishes Greece as a regional energy hub and upgrades its economic and geo-strategic importance.”

DEPA’s footprint is solid in the domestic energy market as well, where it recently prevailed in a tender process for natural gas supply to PPC in 2020. The company acknowledged as one of the two bidders, with the ability to supply PPC with 2 million MWh.

Alexandroupoli FSRU awaiting Bulgarian, Romanian decisions

Posted on by admin

Gas utility DEPA’s recent decision to enter the prospective Alexandroupoli FSRU project consortium with a 20 percent stake leaves two more vacancies for the line-up’s completion and internationalized establishment.

The venture’s consortium, formed by the Copelouzos Group’s Gastrade, is now awaiting entry decisions from Bulgaria’s BulgarGasTrans as well as Romania’s Rompetrol, seriously examining the prospect of acquiring a 20 percent stake in this prospective LNG terminal project in Greece’s northeast.

Gaslog, active in LNG transportation, was the first partner to join Gastrade with a 20 percent stake in the consortium.

Gastrade is now preparing to stage a binding second-round market test for capacity reservations. RAE, the Regulatory Authority for Energy, has approved Gastrade’s procedure inviting participants to bid.

This second-round bidding phase is expected to be completed by the end of January, paving the way for a finalized investment decision by the project’s developers.

The first round’s non-binding expression of interest phase was completed at the end of last December.

A total of 24 bidders had expressed interest for 12.2 billion cubic meters, more than double the planned facility’s annual regasification capacity of 5.5 bcm.

 

 

Copelouzos, DEPA secure PPC gas supply deals for 4.5m MWh in 2020

Posted on by admin

The Copelouzos Group and gas utility DEPA have emerged as the winning bidders of a power utility PPC tender for gas supply to the latter in 2020 totaling 4.5 million MWh. The terms include an option for supply in 2021.

Besides the Copelouzos Group and DEPA, a third participant, Mytilineos, took part in the tender.

The Copelouzos Group has successfully bid to supply 2.5 million MWh of gas to PPC, while DEPA has taken on the other 2 million MWh needed by the power utility, energypress sources informed.

PPC is one of Greece’s biggest natural gas consumers. Its needs are expected to grow further as a result of the power company’s upcoming entry into Greece’s natural gas retail market, a move carrying ambitious targets. PPC also plans to enter the wholesale gas market.

PPC failed to secure capacity slots for 2020 at the Revythoussa LNG terminal, just off Athens, through a competitive procedure from November to earlier this month.

Success here would have enabled PPC to import LNG shipments in 2020, as the power utility had done in the previous year.

PPC now intends to bid for an LNG capacity at the prospective Alexandroupoli FSRU in northeastern Greece during a binding second-round market test expected following the festive season.

PPC, seeking gas role, wants Alexandroupoli FSRU capacity

Posted on by admin

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.

Alexandroupoli FSRU 2nd-round market test ready for launch

Posted on by admin

Gastrade, heading an effort for the development of an FSRU in Alexandroupoli, northeastern Greece, is preparing to launch a binding second-round market test.

RAE, the Regulatory Authority for Energy, has approved the procedure’s finalized texts concerning participation terms and conditions, indicative tariffs, schedules and a capacity reservation model for the LNG terminal.

The second-round market test could be completed by the end of January, it is anticipated. This would pave the way for a final investment decision by the company while a concurrent effort is made to finalize the venture’s equity make-up.

Besides the Copelouzos group, the venture’s initiator, GasLog, active in LNG transportation, is also on board with a 20 percent stake. A final decision by gas utility DEPA on its participation, also with a 20 percent stake, remains pending.

DEPA’s prospective involvement in the Alexandroupoli FSRU project, considered a certainty, has been passed on to DEPA Trade, a new entity established in preparation for DEPA’s privatization.

A final decision by Bulgarian Energy Holding (BEH) concerning its possible entry with a 20 percent stake is also pending.

An effort offering the remaining 20 percent is in progress. Candidates include Romgaz, Romania’s biggest natural gas producer and main supplier in the domestic market. The company’s shareholders recently voted to enter the Alexandroupoli FSRU project.

“We are very optimistic. We believe we will do better than what we need to in order to make the final investment decision,” Gastrade’s chief executive Costis Sifneos noted recently.

Greece’s decarbonization program, announced recently by the government, will bring about major changes to the country’s energy mix, according to Sifneos. He expects the domestic natural gas market to grow from its current size of 4.5 billion cubic meters, annually, to 7 billion cubic meters over the next 5 to 7 years.

The Greek gas market has grown by 17 percent this year alone, while, for the first time, LNG quantities exceeded pipeline gas.

Elpedison makes dynamic gas market move for 2020, Balkans also eyed

Posted on by admin

Elpedison’s strong turnout for gas grid operator DESFA’s annual reservation of LNG slots at the Revythoussa terminal just off Athens highlights the company’s strategic decision aiming for a leading role in the wholesale gas market, which it entered last year.

Elpedison has reserved 22 slots, roughly one-third of a total of 65 slots offered by DESFA for the terminal in 2020.

Mytilineos, the country’s biggest LNG importer, also booked 22 slots. Gas utility DEPA reserved 14 slots, while Heron booked seven slots.

Elpedison considers its involvement in the wholesale and retail gas markets just as important as its activities in the electricity market, chief executive Nikos Zahariadis underlined in comments to energypress. Elpedison will bolster its gas market presence in 2020, he added.

Storage and gasification capacity increases at the Revythoussa LNG terminal have played an instrumental role in helping liberalize Greece’s gas market. This development, along with lower-priced LNG, compared to pipeline gas, has created market prospects and opportunities. Elpedison operates two gas-fueled power plants.

Besides the Greek market, Elpedison, just like all other corporate groups importing and trading gas, also sees opportunities in Balkan markets. The company already sells modest gas quantities in Bulgaria and Romania but is aiming for a significant increase in 2020.

Greece is developing into a gas hub for supply to the wider southeast European region, Zahariadis, Elpedison’s chief executive, noted. Major international gas infrastructure projects such as the TAP, IGB, Alexandroupoli FSRU and underground gas storage facility in the offshore South Kavala region are expected to be completed within the next few years, he stressed.

 

Stricter PPC hiring supervision among energy draft bill changes

Posted on by admin

A number of observations made during public consultation for an energy-sector draft bill concerning the energy market’s liberalization, power utility PPC’s modernization, gas utility DEPA’s privatization and RES support, including stricter recruitment control at PPC, have been incorporated into the bill.

The draft bill, submitted to Parliament last Friday, will now be distributed to parliamentary committees for discussion before being transferred to the house for ratification towards the end of the month.

The stricter recruitment control at state-controlled PPC will require inspections and approvals by ASEP, the Supreme Council for Civil Personnel Selection, during hiring procedures, not afterwards.

In another important draft bill revision, gas utility DEPA’s possible stake in the prospective Alexandroupoli FSRU would be held by DEPA Trade, a new DEPA entity being formed as part of the gas utility’s privatization. Previously, this stake was planned for the utility’s international projects division.

Furthermore, the new shareholders to acquire the Greek State’s 65 percent of DEPA Infrastructure, the gas utility’s other new entity in the making, will need to maintain this stake for at least five years.

Also, a universal electricity supply service covering the electricity needs of blacklisted consumers not wanted by suppliers for repeatedly failing to meet electricity bill payments, will require the market’s top five suppliers – up from three – to cover this sector’s market needs for two years if a competitive procedure for the service fails to produce a result.

Independent suppliers, repelled by market irregularities, have shunned this universal service since its introduction in Greece in 2011. This has forced PPC to step in, by law, as the dominant player.

The aim is to transform the universal service, offering electricity at considerably elevated rates, into an attractive market for local suppliers, as is the case in other European markets.

DEPA examining Alexandroupoli FSRU stake, role in privatization

Posted on by admin

Gas utility DEPA is contemplating its entry into the equity line-up of an FSRU planned for Alexandroupoli, northeastern Greece, and, if so, whether this stake would be incorporated into DEPA Trade or DEPA Infrastructure, two new divisions to emerge ahead of the utility’s upcoming privatization.

DEPA’s stake in the Alexandroupoli FSRU, expected to be 20 percent, would make a good selling point for DEPA Trade ahead of the privatization. Finalized decisions by the DEPA board are expected soon. Neighboring Bulgaria’s liberalized gas market, in which DEPA already enjoys a presence, will be taken into account.

A project budgeted at 380 million euros, the Alexandroupoli FSRU, promoted by Gastrade, has reached a very mature investment phase. The unit is planned to be moored 17.6 kilometers southwest of the Alexandroupoli port.

According to the project plan, the facility’s LNG storage capacity will be between 150,000 and 170,000 cubic meters, while LNG regasification will be performed at the FSRU and then transported to mainland pipelines via a 28-kilometer pipeline, of which 24 kilometers will be under water.

The details of the DEPA Trade and DEPA Infrastructure privatizations still remain uncertain. According to some sources, both procedures could be staged concurrently and offer investors as much as 65 percent of each division, in other words, the Greek State’s entire stake in DEPA. Hellenic Petroleum ELPE owns the other 35 percent of DEPA.

Copelouzos’ DESFA 6.6% buy inspection ready by September

Posted on by admin

RAE, the Regulatory Authority for Energy, expects to complete its inspection of the Copelouzos group’s entry into gas grid operator DESFA early in September, enabling the agreement’s completion.

Earlier this month, the Copelouzos group’s Damco agreed to buy a 10 percent stake of Senfluga, a consortium formed by Snam, Enagas and Fluxys for the acquisition of a 66 percent stake of DESFA last year. This promises to offer Damco a 6.6 percent share of DESFA.

RAE’s endorsement could be delayed beyond early September if the authority requests further details on the agreement, some sources warned.

Damco’s decision to acquire a 6.6 percent stake of DESFA, officially announced on August 5, signals the Copelouzos group’s interest for a wider association with Snam, Enagas and Fluxys in international infrastructure projects.

The Senfluga consortium was established with Snam as its main shareholder, holding a 60 percent stake, joined by Enagas and Fluxys, each with 20 percent stakes.

The Copelouzos group, in association with Gaslog, an international LNG carrier run by Panagiotis Livanos, has launched an effort for the development of an FSRU in Alexandroupoli, northeastern Greece. Greek gas utility DEPA, its Bulgarian peer Bulgartransgaz, and private investors are also expected to become involved in this project.

Highlighting the domestic natural gas market’s growing potential, DESFA is also eyeing an imminent tender for the development of an underground gas storage facility at a depleted natural gas field in the offshore South Kavala region.

 

Kavala underground gas storage tender later this year

Posted on by admin

A tender concerning the utilization of a depleted natural gas field in the offshore South Kavala region as an underground gas storage facility is expected to be launched by the privatization fund TAIPED towards the end of the year.

The privatization fund has informed the energy ministry on the progress of preparations, energypress sources informed.

A month ago, on July 12, TAIPED launched a tender seeking specialized preliminary services for the project.

The winning bidder of this initial procedure, expiring August 28, will need to prepare the technical details of the project’s eventual tender and offer consultancy to the privatization fund on the prospective underground gas storage facility’s feasibility and demands.

The recently appointed energy minister Costis Hatzidakis has made clear his intent to utilize the depleted natural gas field.

France’s Engie, GEK-Terna and Energean have formed a consortium, named Storengy, in anticipation of the project’s tender.

Greek gas grid operator DESFA is also believed to be eyeing the project, included in the EU’s list of PCI projects.

The project’s budget is estimated at between 300 and 400 million euros, while its storage capacity could end up being anywhere between 360 and 720 million cubic meters, as much as 10 percent of the country’s annual natural gas consumption.

The prospective underground gas storage facility is regarded as infrastructure that will complement – rather than compete against – the country’s existing LNG terminal on Revythoussa, an islet just off Athens, as well as a prospective FSRU in Alexandroupoli, northeastern Greece, helping establish Greece as an energy hub.

Continuation of energy strategy minister’s guide at Cairo forum

Posted on by admin

Recently appointed energy minister Costis Hatzidakis will formally commence work on promoting Greece’s international energy relations at his first meetings abroad, today and tomorrow, at the East Med Gas Forum in Cairo.

The minister, in recent speeches, has already made clear his interest in supporting a national strategy shaped to bolster the country’s energy security, elevate its geopolitical role and fuel economic growth.

Strategic partnerships with Cyprus, the USA, Israel and Egypt will play a pivotal role in this effort.

Greece, Cyprus, Egypt, Israel, Italy, Jordan and the Palestinian Authority will all be represented at the Cairo forum.

Hatzidakis, Greece’s energy minister, is also expected to discuss energy partnerships and regional security with US energy secretary Rick Perry, who is in the Egyptian capital as part of a tour of the east Mediterranean.

Development of the submarine East Med gas pipeline, a project promising security and stability for the wider region, is a leading priority  for Greece.

On a wider level, the minister can be expected to carry on supporting a national strategy pursued over the past decade to establish Greece as a pivotal energy player in the region and key problem solver of regional energy partnership issues.

As for other major energy infrastructure projects, the new Greek government will continue to provide national support for the swift completion of the Trans Adriatic Pipeline (TAP), planned to transport Caspian natural gas to Europe, and the Greek-Bulgarian IGB gas grid interconnector. Other investment plans such as the Alexandroupoli FSRU and the Kavala underground gas storage facility will also keep receiving the support of Greece’s administration.

Gastrade second-round market test for Alexandroupoli FSRU in September

Posted on by admin

Gastrade, heading an effort for the development of an FSRU project in Alexandroupoli, northeastern Greece, plans to stage a binding second-round market test for annual capacity reservations in September, slightly beyond July, as has been previously reported.

Gastrade is currently preparing and submitting various related documents as part of the procedural requirements set by RAE, the Regulatory Authority for Energy. The authority has endorsed Gastrade’s guidelines.

A non-binding first-round market test was completed on December 31 last year. Twenty firms based in various parts of the wider region, as well as major international gas traders, expressed official interest for annual capacity reservations totaling 12.2 billion cubic meters, which exceeded the project’s planned regasification capacity of 5.5 billion cubic meters.

A final investment decision is expected to be reached by the end of the year while the project’s launch is planned for the end of 2021.

Second-round market test for Alexandroupoli FSRU in July

Posted on by admin

Gastrade, heading an effort for the development of an FSRU project in Alexandroupoli, northeastern Greece, is close to launching a binding second-round market test for annual capacity reservations, seen taking place within July.

The company has requested the approval of market-test guidelines and regulations from RAE, the Regulatory Authority for Energy, sources have informed.

Once this stage has been completed, participants will receive a series of related documents covering issues such as capacity reservation and guarantees.

Pricing policy is among the matters that have been discussed between Gastrade and RAE in the lead-up. Gastrade has opted for a flexible pricing policy promising users a range of choices on aspects such as LNG quantities, products and commitment durations.

Binding second-round market test participants will be given approximately two months to make their capacity reservations for the LNG terminal, sources have estimated.

The market test’s first round, a non-binding stage, was completed on December 31. Twenty firms based in various parts of the wider region, as well as major international gas traders, expressed official interest for annual capacity reservations totaling 12.2 billion cubic meters, which exceeded the project’s planned regasification capacity of 5.5 billion cubic meters.

 

Alexandroupoli FSRU second-round market test terms almost ready

Posted on by admin

A binding second-round market test for an FSRU project planned for development by Gastrade in Alexandroupoli, northeastern Greece, could be launched immediately following next week’s Greek Orthodox Easter.

RAE, the Regulatory Authority for Energy, is close to finalizing and endorsing the terms of the market test. The authority has been engaged in continual talks with Gastrade over the past few weeks.

Gastrade is striving to maximize the flexibility of terms and product range to be offered to prospective users of the LNG terminal.

The market test’s first round, a non-binding stage, was completed on December 31. Twenty firms based in various parts of the wider region expressed official interest for annual capacity reservations totaling 12.2 billion cubic meters, exceeding the project’s planned regasification capacity of 5.5 billion cubic meters.

Interested parties intend to supply LNG quantities to markets in the wider southeast European region.

Gastrade plans to make a final investment decision by the end this year, while the project’s launch is projected for the end of 2021.

 

Copelouzos to begin development of Alexandroupoli power plant

Posted on by admin

The Copelouzos group’s Damco Energy plans to soon start developing a combined cycle power station in northeastern Greece’s Alexandroupoli area with support from a major foreign energy company, not yet named, energypress sources have informed.

RAE, the Regulatory Authority for Energy, granted a license for the project just days ago. The Copelouzos group submitted its application in December.

The facility is planned to be linked to the prospective Alexandroupoli FSRU by a company-owned gas pipeline, meaning Damco Energy will avoid transmission costs as the gas grid operator DESFA’s network will not be needed. This should offer the power station a competitive advantage.

Though planned as separate projects, the Alexandroupoli FSRU, an LNG terminal, and the Damco Energy power plant promise to establish synergies as one unit will support the other.

The power plant’s operating costs and production capacity, planned to offer 662 MW over a 35-year period, promise to offer grid dispatch advantages, a related study conducted by the Copelouzos group has shown.

The project is seen contributing to Greece’s wider decarbonization effort and the intermediary role to be played by natural gas in electricity generation until renewable energy sources can fully take over.

The Copelouzos group plans to complete the combined cycle power station’s development in 27 months, while its commercial launch is expected early in the second quarter of 2022, following testing.

 

 

Alexandroupoli FSRU vessel expression of interest date near

Posted on by admin

Companies eyeing an FSRU project planned for development in Alexandroupoli, northeastern Greece, face a nearing February 15 deadline to submit expressions of interest for provision of a vessel to be used as part of the floating LNG terminal.

This will be followed by a final round for binding offers, expected within the first quarter of 2019, and a finalized investment decision soon after, presumably in the second quarter, when work on the project is planned to commence.

It is estimated the LNG terminal will be completed in the first quarter of 2021, while its launch is planned for the second quarter of 2021.

Meanwhile, a second-round market test offering traders capacity reservations is expected to be held during the second quarter of this year. The first round, completed at the end of 2018, attracted a total of 20 companies expressing interest for an annual capacity of as much as 12.2 bcm, which is more than double the prospective facility’s planned 5.5 bcm capacity.

Apart from Greek and Bulgarian firms that had been expected to take part, the market test also drew companies from the wider region, such as Serbia, Hungary, Romania and Austria, as well as major international traders.

The Alexandroupoli FSRU is planned to be constructed 17.6 km southwest of the Greek city’s port and will include submarine and overland pipeline systems measuring a total of 28 km for links with the country’s gas grid.

The facility’s LNG storage capacity is planned to measure as much as 170,000 cubic meters while its gas supply capacity is expected to reach 900,000 nm3 per hour or 8.3 billion nm3 per year.

 

Strong reservation interest for Alexandroupoli LNG terminal

Posted on by admin

A market test for an FSRU project planned for development by Gastrade in Alexandroupoli, northeastern Greece has drawn greater than expected interest from traders for capacity reservations, who expressed interest for a level totaling one and a half times the planned LNG terminal’s full capacity.

A further increase of significant magnitude is expected as a number of major trading firms have requested and been given a deadline extension of a few days to prepare all needed documents for their expressions of interest. The market test’s new deadline has now been extended to December 31.

The overwhelming level of interest ensures the project’s sustainability as well as the development interest of its partners. It also reflects the need of regional countries for alternative natural gas sources as well as an anticipation of a more significant role to be played by LNG in the global energy mix.

Besides the gas utility DEPA and Bulgarian Energy Holding (BEH), two companies whose interest in Alexandroupoli FSRU capacity is already widely known, all major traders, Hungarian and Serbian firms, as well as Greece’s main power utility PPC emerged to express interest, according to sources.

Without a doubt, the project, granted PCI status by the European Commission, is politically supported at national, European and cross-Atlantic levels.

According to Gastrade, the project will be ready by the end of 2020. DEPA and BEH are soon expected to be inducted into the project’s consortium as partners. At present, it appears the consortium will be comprised of five partners, each holding 20 pecent stakes – Gaslog, DEPA, BEH, Gastrade and a fifth still-unknown partner.

Alexandroupoli FSRU tender draws major international interest

Posted on by admin

More than ten companies are believed to have expressed official interest in a tender launched by Gastrade, a member of the Copelouzos group, for provision of a vessel to be used as part of the FSRU facility in Alexandroupoli, northeastern Greece, as well as for the LNG terminal’s development.

The tender’s deadline expired last Friday. Major international players have submitted offers, including foreign companies in collaboration with Greek contractors.

A market test measuring the level of interest for capacity reservations at the planned LNG terminal in Alexandroupoli, promising to serve as a gateway for gas supply to the wider Balkan region, is being concurrently held with the tender. The results of the current market test, whose deadline expires in mid-December, will be pivotal for the project’s final investment decision. A follow-up market test, for binding commercial interest, will also be staged.

The Alexandroupoli FSRU, planned to be constructed as a fixed facility 17.6 kilometers southwest of the city’s port, will have an LNG storage capacity of 170,000 cubic meters and the ability to supply gas at a rate of 900,000 nm3 per hour or 8.3 billion nm3 per year.

Construction of the Alexandroupoli FSRU is scheduled to commence in 2019 while its completion date has been set for July, 2020. The unit’s launch is expected in late September, 2020.

 

First round of crucial market test for Alexandroupoli FSRU launched

Posted on by admin

Shareholders at Greek gas company Gastrade, seeking to co-develop an FSRU project in Alexandroupoli, northeastern Greece, will need to make final investment decisions following a market test, whose first round, entailing non-binding expressions of interest, was launched yesterday.

Binding bids, for FSRU capacity reservations, will be made in the procedure’s follow-up round.

Granted PCI status by the EU, the Alexandroupoli FSRU is being widely supported, politically, at national, European and cross-Atlantic levels.

Greek gas utility DEPA and Bulgaria’s BEH are both seen as market test certainties. Plans are now at advanced stages for both to each hold 20 percent stakes in a consortium for the Alexandroupoli FSRU’s development. Final approvals for the consortium entries of both are anticipated but still pending.

The emergence of other players, for FRSU capacity reservations, will be pivotal for the project’s development prospects. Gastrade and its project partners will be hoping to see the emergence of key international players aiming to supply gas to the wider region, including US gas exporters, firms associated with the prospective Greek-Bulgarian IGB link, including Serbian, as well as traders operating in the region.

For quite some time now, there has been talk of a US firm entering the Alexandroupoli FSRU consortium with a 20 percent stake. Cheniere has been named as a possibility but another undisclosed US contender is also believed to be in the running.

The Alexandroupoli FSRU consortium was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also joined. At present, Gastrade holds a 40 percent stake and Gaslog holds 20 percent. DEPA and BEH are also expected to acquire respective 20 percent stakes, while any newcomer is expected to take on half of Gastrade’s current stake.

Surprise US player may enter Alexandroupoli FSRU team

Posted on by admin

An additional member, possibly a major US player, could join a consortium for the development and operation of an FSRU project in Alexandroupoli, northeastern Greece, with a 20 percent stake, in addition to DEPA, the public gas corporation, and Bulgaria’s BEH, both preparing to also enter the project’s corporate team.

Technical details are now being worked on by the Bulgarian government for the entries of DEPA and BEH to the Alexandroupoli FSRU’s consortium. It was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also joined.

The government in Sofia is expected to offer its approval within the current month. Once this stage is completed, the consortium will be comprised of Gastrade (40%), Gaslog (20%), DEPA (20%) and BEH (20%). The additional entry being touted would acquire half of Gastrade’s stake, giving all members equal stakes.

Cheniere, the dominant player of the US natural gas market, and another unnamed American enterprise, regarded as a surprise candidate, are both being touted as possible additions to the Alexandroupoli FSRU consortium.

The addition of a non-American enterprise has also been mentioned as Gastrade is believed to be engaged in talks with major traders showing an increasing interest in the specific region.

“A final decision will be reached based on the added value, both strategically and financially, to be brought to the project by the new shareholder,” a source involved in the developments informed energypress.

Meanwhile, a two-stage market test is expected to be launched by mid-September. Gastrade anticipates an accurate measure of the overall commercial interest in the project by the end of 2018, before it makes investment decisions. If all goes as planned, the FSRU project will be ready to operate at the end of 2020.

Important project news is expected to emerge this Friday at a Hellenic-American Chamber of Commerce conference in Thessaloniki, held ahead of the Thessaloniki International Trade Fair, opening Saturday.

The Alexandroupoli FSRU is seen as an important project that may ensure supply of new natural gas quantities to the Greek and regional southeast European markets, while also contributing to the diversification of supply sources and routes. The PCI-status project plan is being widely supported at Greek, EU and cross-Atlantic levels.

 

DEPA, Gastrade agree on capacity reservation for FSRU in north

Posted on by admin

The managing director of DEPA (public gas corporation), Dimitris Tzortzis, and the managing director of Gastrade, Konstantinos Spyropoulos, have reached an agreement in Athens regarding the future capacity reservation by DEPA for the LNG terminal in Alexandroupoli, northern Greece, an EU Project of Common Interest developed by Gastrade, as well as for DEPA’s participation in the relevant market test that will be carried out in the coming months, DEPA has announced in a statement.

The agreement was reached within the context of a trilateral meeting between DEPA, the Bulgarian Energy Holding EAD (BEH) and Gastrade.

This is a follow-up to a cooperation agreement signed by the two parties for the participation of DEPA in the share capital of Gastrade, which is expected to be completed soon, as well as for the joint efforts of the parties for further commercial development of the project.

At the same time, the Bulgarian side, following a meeting in Sofia last month by Greek energy minister Giorgos Stathakis and his Bulgarian counterpart Temenuzhka Petkova, confirmed its intention to speed up respective negotiations for the completion of its own participation in the project.

Gastrade is a Greek company that studies, designs, constructs, manages and operates gas infrastructure. The company has already required all licenses needed to begin constructing the LNG terminal in Alexandroupoli.

The project will ensure new gas quantities for supply to the Greek and regional markets of southeastern Europe, contribute to the expansion of gas supply sources and routes, promote competition to the benefit of consumers, supply security in Greece and the Balkans, and improve the reliability and flexibility of the national natural gas system as well as of the regional and trans-European systems.

In February, 2017, GasLog, an international owner, operator and manager of LNG carriers, announced that it had acquired a 20 percent stake in Gastrade.

GasLog’s consolidated owned fleet consists of 29 LNG carriers (25 ships on the water and four on order).

DEPA, backed by a long presence in the Greek gas market, is a modern and competitive group of companies with a dynamic presence in the energy sector. DEPA promotes the development of strategic infrastructure for the supply of gas from diversified sources and routes at competitive prices, with a view to taking a leading role in the markets of the wider region of southeastern Europe.

Bulgarian Energy Holding EAD (BEH) is the holding company for a group of companies which are principally engaged in electricity generation, supply and transmission, natural gas transmission, supply and storage and coal mining. BEH holds leading positions in the electricity and gas markets in Bulgaria and, through electricity exports, in the Balkans. BEH is wholly owned by the Bulgarian state and is the largest state-owned company in terms of total assets in the country. The rights of ownership of the state are exercised by the Minister of Energy.

 

 

 

Alexandroupoli FSRU business decision seen by end of year

Posted on by admin

A road map prepared by shareholders of a consortium for the development and operation of an FSRU project in Alexandroupoli, northeastern Greece, lists three basic steps still needed for the venture’s development and operation.

Greece’s DEPA, the public gas corporation, and Bulgaria’s BEH still need to complete negotiations and sign agreements concerning their involvement; an official market test measuring capacity coverage by interested third parties must be staged; and a finalized business plan that would enable the project’s development to commence towards the end of the year, are listed as three pending steps in the road map.

Current developments suggest the official market test will be held imminently, most likely by the summer.

The Alexandroupoli FSRU is seen as a project that may ensure supply of new natural gas quantities for the Greek and regional southeast European markets; contribute to the diversification of supply sources and routes; increase competition, to the benefit of consumers; and boost the reliability and flexibility of both the national and regional gas systems.

These factors have helped reinstate the Alexandroupoli FSRU as an EU Project of Common Interest (PCI).

The project’s interests are linked to those of the Greek-Bulgarian IGB Interconnector.

The Alexandroupoli FSRU plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also officially joined the consortium. Due dilligence is currently in progress for DEPA’s entry with a 20 percent stake. DEPA signed a related agreement with Gastrade in October.

Negotiations with Bulgaria’s BEH are also in progress. The firm’s official entry into the project is expected soon.

 

 

 

PPC seeking natural gas retail, wholesale, infrastructure roles

Posted on by admin

RAE, the Regulatory Authority for Energy, has issued a natural gas supply license to the main power utility PPC, the authority has officially announced, paving the way for the electricity company to pursue a revised business plan for the future that is expected to include penetration into the natural gas sector’s retail and wholesale markets, as well as involvement in major-scale gas infrastructure projects.

PPC is preparing its entry into the natural gas market, a development that promises to transform the corporation from a natural gas consumer to a key player, PPC’s deputy chief Stavros Goutsos stressed.

At present, the power utility is the country’s biggest natural gas consumer, requiring approximately 1.4 bcm for electricity generation needs, from 4.8 bcm of the country’s total for this purpose.

According to energypress sources, PPC is examining the prospect of taking part in major natural gas sector projects such as the Kavala gas storage facility, the FSRU in Alexandroupoli, CNG development around the country, as well as small-scale LNG infrastructure development for supply to the islands.

The same sources informed that PPC is also looking to become involved in the LNG spot market as its plans include importing LNG shipments.

As for the retail gas market, PPC is striving to offer combined gas and electricity packages to consumers by October. Rival firms are already offering such combined packages.

PPC will aim for a retail gas market share of around 30 percent given its substantial client base in the electricity market. The firm is taking its cue from similar moves taken by major power firms around Europe that have also entered natural gas markets. The growth prospects promised by the Greek gas market represent a key incentive.

 

Fifth investor seen joining Alexandroupoli FSRU consortium

Posted on by admin

Heightened investor interest in the prospective LNG terminal in Alexandroupoli, northeastern Greece, is expected to soon lead to the addition of a fifth member into a consortium established to develop the project, energypress sources have informed.

A fifth member is expected to be announced before the end of the year, offering participants respective 20 percent stakes.

An increasing number of companies are considering joining the consortium, spurred by the transatlantic political support of the FSRU project, confidence of its actualization, and recent rentry on the EU’s Projects of Common Interest (PCI) list.

Firms considering joining the consortium are primarily American and European, sources have informed. Some of these are active in the production and trade of natural gas, while others are European network operators, sources added.

The Alexandroupoli FSRU plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier run by Panagiotis Livanos, and, most recently, DEPA, the Public Gas Corporation, also officially joined the consortium. Bulgarian Energy Holding (BEH) is also set to join, as the consortium’s fourth member.

Gastrade and its consortium partners are currently engaged in negotiations with interested parties to decide on a fifth consortium member.

 

 

New leadership appointed at DEPA gas corporation

Posted on by admin

The two leading officials at state-controlled DEPA, the Public Gas Corporation, have been replaced by new faces hailing from the private sector, the energy ministry, TAIPED, the state privatization fund, and ELPE, which holds a 35 percent stake in DEPA, have decided, it has been confirmed.

Theodoros Kitsakos, DEPA’s outgoing chief executive officer, has been replaced by Dimitris Tzortzis, who possesses an extensive track record in private-sector enterprises involved in networks and telecommunications, as well as public administration.

Velissarios Dotsis, who also hails from the private sector and, in addition, has worked at Enterprise Greece, a government-sponsored group promoting investment opportunities in Greece and exports, has been named the new DEPA president.

The gas corporation’s new leadership will need to tackle a wide range of issues, including development of international projects such as the Greek-Bulgarian IGB interconnector; the floating LNG terminal at Alexandroupoli, northeastern Greece; matters concerning the Greek energy market’s liberalization; DEPA’s future role in the country’s retail natural gas marketl as well as the debt problems of two major-scale customers, ELFE (Hellenic Fertilizers and Chemicals) and EBZ (Hellenic Sugar Industry).

Tzortzis, the new chief executive officer, is a graduate of the National Technical University of Athens, where he studied Electrical Engineering and Computer Engineering. His past work contracts have included a 14-year tenure at Intracom, spells at Attica Telecommunications, HOL, the secretary general post at EETT (Hellenic Telecommunications & Post Commission) between May, 2015 and April, 2016, when he resigned, as well as an Intralot subsidiary.

 

 

 

BEH to soon enter Alexandroupoli FSRU with 25% stake, deputy says

Posted on by admin

Bulgarian Energy Holding (BEH) expects to soon enter a consortium planning to develop a floating LNG terminal in Alexandroupoli, northeastern Greece, with a 25 percent stake, the company’s deputy chief executive officer Severin Vartigov noted during a speech at Energy Academy, a recent conference staged by the Greek Energy Forum in Athens.

Vartigov described the Alexandroupoli FSRU and the Greek-Bulgarian IGB gas pipeline interconnection as complementary projects to contribute to source  diversification and supply security in the wider southeast European region.

BEH will acquire a 25 percent stake in the Alexandroupoli FSRU consortium as soon as a due dilligence procedure has been completed, the BEH official noted.

The Alexandroupoli FSRU plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, and, most recently, DEPA, the Public Gas Corporation, also joined in. Besides BEH, Tellurian Energy, a US firm, has also considered entering the consortium.

Vartigov reminded that a construction permit for the IGB project’s Bulgarian segment was issued in September. He noted the project soon stands to secure additional EU funding worth 37.5 million euros for the increased level of competitiveness the project promises to offer.

The BEH deputy noted the IGB consortium is working intensively to ensure EU funding.

Vartigov told the conference the IGB interconnection will be completed and ready to operate by the end of 2019.

The Bulgarian official also expressed aspirations for development of a Serbian-Bulgarian gas pipeline interconnection. He described this plan as a low-cost project as Serbia has already been offered EU funding that would cover 60 percent of the cost of the segment covering Serbian territory. BEH is ready to cover the cost concerning the Bulgarian side, Vartigov said.

A Romanian-Bulgarian gas pipeline interconnection has been completed but, at present, can only flow one way, from south to north, as a result of low pressure hampering Romania’s natural gas grid, Vartigov noted. He said he is confident the Romanian government will soon install new compressors to boost the national gas grid’s pressure and enable reverse flow.

 

 

DEPA chief invites Serbia to take part in Alexandroupoli FSRU, IGB pipeline

Posted on by admin

The head official at DEPA, Greece’s Public Gas Corporation, has extended an invitation to Serbia for participation in major energy projects planned for the region, namely the Greek-Bulgarian IGB gas pipeline interconnection and a floating LNG terminal in Alexandropoli, northeastern Greece.

Theodoros Kitsakos, DEPA’s chief executive officer, asked Serbian officials for the country to become involved in these projects during a series of meetings in Serbia.

Kitsakos visited the neighboring country to take part in an ecomomic forum earlier this week, held to discuss regional energy developments.

The DEPA chief met with key Serbian officials, including the gas utility and energy ministry heads, as well as energy-sector entrepreneurs, as part of an effort to promote DEPA’s strategic plan for the wider region.

Speaking at the economic forum, Kitsakos stressed the considerable gas needs of the wider Balkan region and Europe, overall, require the utilization of additional supply sources.

European gas consumption requirements represent 13 percent of global demand but the continent’s gas deposits amount to just one percent of the world’s total supply, Kitsakos pointed out.

Kavala gas storage facility to reenter PCI list, decisions today

Posted on by admin

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.

Tellurian named as US firm considering Alexandroupoli FSRU involvement

Posted on by admin

Tellurian Energy has been identified as the previously unnamed US firm interested in entering a consortium to develop a floating LNG terminal (FSRU) in Alexandroupoli, northeastern Greece, energypress sources have informed.

Last week, Greece’s energy minister Giorgos Stathakis disclosed that a US firm, which he did not name, and BEH (Bulgarian Energy Holdings) were both negotiating their possible involment in the LNG project.

The Alexandroupoli project plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier operator, and, most recently, DEPA, the Public Gas Corporation, also joined in.

The newly formed Tellurian Energy, founded by experienced officials, including from the ranks of Cheniere Energy, the biggest exporter of American natural gas, is now laying the groundwork for a dynamic entry into the global LNG market.

Tellurian Energy is headed by Charif Souki, who, during his previous tenure at Cheniere Energy, had represented the company in talks for that firm’s entry into the Alexandroupoli LNG venture.

Amos Hochstein, until recently a former US Special Envoy and Coordinator for International Energy Affairs, is a key member of the administration at Tellurian Energy, which he joined earlier this year.

Tellurian Energy is planning to develop an export and LNG production terminal in Louisiana. Its construction is expected to begin next year while the facility is planned to start operating in 2022.

This terminal is budgeted at between 13 and 16 billion US dollars while the development of pipeline infrastructure to link the facility with natural gas fields is budgeted at a further 1.6 to 2 billion US dollars.