Revythoussa at full capacity in May, 10 LNG orders scheduled

A total of nine LNG shipments are scheduled to be delivered to the Revythoussa islet terminal just off Athens in May, taking the facility to full capacity for yet another month, data provided by gas grid operator DESFA has shown.

Three LNG tankers are scheduled to bring in three big orders for a total of ten recipients in May.

The inflow has already begun. Last week, the Maran Gas Ulysses, a tanker belonging to the Aggelikousis group, imported 149,254 cubic meters for four buyers, Motor Oil, Heron, gas utility DEPA and Mytilineos, whose share, 74,627 cubic meters, was the biggest.

The next shipment, scheduled to be delivered to the Revythoussa terminal on May 20 by the Gaslog tanker belonging to the Livanos group, will deliver 147,710 cubic meters of LNG for Elpedison and power utility PPC, taking the bigger share of the two buyers, 127,031 cubic meters.

A third and final LNG shipment for the month is scheduled to arrive May 31 on the British Saphire tanker, owned by BP. This vessel will bring in 121,123 cubic meters of LNG for DEPA and Elpedison, the bigger of the two buyers with a 64,993 cubic-meter order.

A total of five big LNG shipments are expected in June for orders placed by Mytilineos, Elpedison and DEPA.

Energean extends Prinos offtake agreement with BP until late 2025

Energean Oil & Gas, a leading independent E&P company focused on the Eastern Mediterranean, has extended its Prinos long-term offtake agreement with BP Oil International Limited until November 1, 2025, the company has announced.

All of the group’s production of crude oil from the Prinos basin is currently sold to BP under the offtake agreement, which was originally signed in 2013 and covered the period until July 31, 2021.

The extension of this agreement secures Energean’s sales of crude oil from the Prinos basin for a further four years, helping safeguard the group’s cash flow, the company noted.

Energean is implementing a new investment program to further increase production from the Prinos and Prinos North oil fields, as well as to develop the Epsilon oil field, which is also a part of the Prinos licence.

The new program, to be financed by a $180 million reserve-based lending facility, consists of drilling of up to 25 wells and the installation of two new platforms by 2021. This will be executed by both the Energean Force, Energean’s owned and operated offshore drilling rig, and the jack-up GSP Jupiter that will drill the first 3 Epsilon wells.

Energean Oil & Gas CEO, Mathios Rigas, commented: “We are very pleased to extend our agreement with BP, a relationship that started in April 2013 and is now developing into a strategic partnership that secures cash flow from our production in Greece. BP has consistently lifted Prinos cargoes in the past four years and has established the Prinos crude in the international markets.

“Increasing our production from Greece, the $1.6 billion capex Phase 1 development of the Karish and Tanin gas fields, offshore Israel, and the exploration of the Eastern Mediterranean remain our focus and we believe the extended BP offtake agreement further strengthens our position to deliver maximum value from the Prinos licence.”

 

Extended period of higher oil prices would benefit local aspirations

It remains to be seen if the currently improved market conditions for the global petroleum industry, prompted by higher oil prices, will last long enough to benefit Greece’s hydrocarbon aspirations.

Greece is looking to push ahead with hydrocarbon exploration and exploitation agreements for fields southwest of Crete as well as in the Ionian Sea.

Earlier this week, British Petroleum announced that the increase in oil prices, combined with lower production costs, helped the petroleum giant increase its profit by 2.8 billion dollars in 2017, following a one-billion dollar drop in 2016. BP’s improved performace in 2017 represents the firm’s best performance, in the hydrocarbon exploration sector, since 2004.

Also highlighting the petroleum industry’s upbeat prospects, ExxonMobil recently announced that it expects a fivefold hydrocarbon production increase by 2025.

 

Improved ELPE results a positive indicator for entire energy market

Hellenic Fuels, an ELPE subsidiary that controls EKO and BP, two of the country’s three major fuel trading companies, posted a sales figure of 3.54 billion metric tones in 2016, a one percent increase compared to the previous year’s figure of 3.49 metric tones.

The company also reported an increase in consolidated sales, prompted by its expanded network of fuel stations, which rose from 1,739 to 1,709, a 2 percent increase.

The annual release of ELPE’s financial results is viewed as an important indicator of where the local energy sector stands as the corporate group maintains a widespread energy market presence.

ELPE is active in fuel trade, through Hellenic Fuels, electricity production and supply, through Elpedison, as well as the natural gas market, as the corporation holds a 35 percent stake in DEPA, the Public Gas Corporation.

The financial standing of Hellenic Fuels, an ELPE subsidiary that controls EKO and BP, two of the country’s three major fuel trading companies, mirrors the entire fuel market’s condition.

In the electricity production sector, ELPE, which maintains a vertically integrated operation through Elpedison, more-than-doubled output in 2016 at its two plants. It amounted to 2,489 GWh from 1,143 GWh in 2015. Elpedison posted a significant sales increase, up 71 percent, and an equally impressive EBITDA rise, up to 40 million euros from 18 million euros. Also, the company rebounded from a loss of 9 million euros to post a net profit of 4 million euros.

As for its natural gas market activity results, ELPE, whose performance signals the figures to come from DEPA, posted a sales increase of 31 percent in 2016, up to to 3.99 billion NM3 from 3 billion NM3. This increase was driven by higher demand at gas-fueled power stations, especially in the fourth quarter, for which DEPA reported an 18 percent year-on-year sales increase to electricity producers and a 21 percent increase to the EPA regional gas supply companies.

 

TAP member BP ‘supporting investments in Greece’ says CEO

BP chief executive Bob Dudley has underlined the importance of the prospective TAP (Trans Adriatic Pipeline) project during a meeting with Greece’s Minister of State Nikos Pappas at the annual World Economic Forum now taking place in Davos.

Dudley, speaking to ANA-MPA (Athens News Agency-Macedonian Press Agency), described the TAP project, in which BP holds a 20 percent stake, as the biggest pipeline infrastructure project in the world at present, according to the oil giant’s knowledge.

The TAP project will carry Azeri natural gas to central Europe via Greece, Italy, Albania, Turkey, and Georgia.

The BP chief noted that the Greek government has been supportive of the plan to implement the TAP project.

“We will begin installing the pipelines for this very significant Southern Corridor project this year. It will be launched in one or two years,” Dudley remarked. “We have signed agreements with Greek firms for the construction and procurement of pipelines,” he added, noting BP supports investments in Greece.