Bulgaria

European electricity prices fall, demand down, RES output up

Posted on by admin

European energy market price levels fell last week, influenced by lower demand as well as increased renewable energy output by wind and solar farms.

Energy markets across southeast Europe recorded noteworthy price reductions last week that averaged 17.44 percent, compared to a week earlier. Favorable weather conditions in this region led to a 60 percent increase in RES output, wind farms being the main contributor.

Serbia posted the biggest week-to-week price reduction in southeast Europe, a 21.34 percent drop in wholesale electricity prices, followed by Greece, where the week’s drop averaged 20.31 percent. Bulgaria and Romania both recorded average price reductions of 19.16 percent last week. Prices in Turkey have also been on a downward trajectory.

In central Europe, spot markets fell to weekly averages of less than 135 euros per MWh. The weekly average, for this region, was lowest in Germany, at 119.05 euros MWh, a 12.61 percent reduction compared to a week earlier as a result of lower demand and increased wind energy output.

Central Europe’s highest wholesale electricity prices last week were recorded in Switzerland, at 134.48 euros per MWh, despite an 11.22 percent reduction compared to a week earlier. France followed with a weekly average price of 131.07 euros per MWh, driven higher by power utility EDF strikes that reduced output at nuclear power plants, covering roughly 70 percent of the country’s energy mix.

PPC reaches agreement for €1.26bn buy of ENEL Romania

Posted on by admin

Power utility PPC and Italy’s ENEL have signed a sale and purchase agreement, following two months of negotiations, for the latter’s sale of its Romanian subsidiary ENEL Romania to the Greek corporation at a price of 1.26 billion euros.

The sale is expected to be completed by September, as long as competition-related authorities approve the agreement.

PPC plans to finance its acquisition of ENEL Romania through a loan of 800 million euros and 460 million euros in company capital.

A move of national importance, PPC’s acquisition of ENEL Romania promises to offer entry into a now-developed Balkan market, establishing the Greek corporation as a strategic market player with access to a significant energy corridor running from Romania and across Bulgaria, all the way to Greece.

Through the deal, PPC will acquire over 130,000 kilometers in electricity distribution networks, double its RES capacity and also gain 3.2 million new customers.

Greek-US energy agenda focused on 3 projects

Posted on by admin

Three energy infrastructure projects, the Alexandroupoli FSRU in Greece’s northeast, an oil pipeline running from the Alexandroupoli port to Burgas, on Bulgaria’s Black Sea coast, and a Greek-Egyptian grid interconnection, were focal points in talks yesterday between Greek and American officials, as part of US Secretary of State Anthony Blinken’s official visit to Athens.

The two sides, meeting for the 4th round of a Greece-US Strategic Dialogue, appeared determined to push ahead with the three projects, propelled by Russia’s war on Ukraine, which has prompted Europe to move in a direction ending its reliance on Russian fossil fuels.

It was agreed that Athens and investors need to accelerate efforts for the aforementioned projects to further marginalize Russian energy supply to Europe.

Besides offering full support for the three energy infrastructure projects, US officials also expressed satisfaction about the recent launch of the Greek-Bulgarian IGB gas pipeline as well as ongoing plans for a pipeline to run from Greece to North Macedonia.

However, the US officials kept a distance from the discovery of gas deposits by Israel, Cyprus and Egypt in the east Mediterranean, as well as the East Med gas pipeline plan – which would connect Israel, Cyprus and Greece before crossing to Italy visa the Poseidon pipeline – presumably to avoid upsetting Turkey, despite problems that have weighed down US-Turkish ties of late.

 

Greek-Bulgarian oil pipeline MoU signed, US offers support

Posted on by admin

Following months of diplomatic and entrepreneurial activity, Greek energy minister Kostas Skrekas and his Bulgarian counterpart, Rossen Hristov, have just signed a Memorandum of Understanding in Athens for the development of an oil pipeline to run from Alexandroupoli in Greece’s northeast to Burgas, on Bulgaria’s Black Sea coast.

The two ministers signed the MoU within the framework of a meeting between Greek Prime Minister Kyriakos Mitsotakis and Bulgarian President Rumen Radev.

Greece’s Alexandroupoli port – developing into one of the eastern Mediterranean’s most pivotal energy hubs as a result of the reversal of energy source flow, nowadays moving from south to north as a result of Europe’s decision to end its reliance on Russian fossil fuels – will facilitate oil primarily imported from the Middle East and headed to east European markets.

The oil pipeline will cover a distance of 260 kilometers, equally divided between Greece and Bulgaria, and offer an annual capacity of 10 million tons, down from an original plan of between 35 and 50 million tons.

A section of the Greek-Bulgarian oil pipeline is planned to run parallel to the IGB gas pipeline linking the neighboring countries.

Work on the oil pipeline is expected to begin within the next two years, while its completion is slated for three to four years from now, a swift procedure for such projects, as environmental permits have already been issued.

The Greek-Bulgarian oil pipeline has not been embraced by Turkey as it will reduce the geopolitical importance of the Bosphorus Strait. Contrary to the past, the US is now expressing full support for the Greek-Bulgarian oil pipeline.

 

Officials fear local infrastructure impact of Turkish-Bulgarian gas deal

Posted on by admin

A Turkish-Bulgarian gas supply agreement reached last month is troubling Greece’s energy players at institutional and market levels as its impact could affect the role of Greek infrastructure, officials have told energypress.

Local officials are mostly concerned about the deal’s gas supply quantity eventually growing in size rather than the small gas quantities it currently involves, as they only cover a small percentage of Bulgaria’s gas needs.

The majority of Bulgaria’s gas needs are still planned to be covered by LNG shipments coming in through the LNG terminal at Revythoussa, close to Athens, while the prospective Alexandroupoli FSRU in Greece’s northeast will, no doubt, contribute to cover Bulgarian gas demand, once the project is launched.

Turkey and Bulgaria, represented by their respective state energy companies, Botas and Bulgargaz, signed a 13-year gas supply agreement on January 3, according to which Turkey is required to supply Bulgaria an annual gas quantity of 1.5 bcm.

EFET, the European Federation of Energy Traders, wants the Turkish-Bulgarian agreement investigated by the European Commission’s Directorate-General for Energy and Directorate-General for Competition, contending European regulations and the overall institutional framework defining the operation of gas infrastructure within the EU and access to interconnection points have been breached.

Greek-Bulgarian MoU for oil pipeline likely in February

Posted on by admin

Greece and Bulgaria are likely to sign a Memorandum of Understanding in Athens next month for the development of an oil pipeline to run from Alexandroupoli in Greece’s northeast to Burgas, on Bulgaria’s Black Sea coast, sources have informed.

If so, a joint Greek-Bulgarian working group would soon commence work on a new study for the project, unchanged at many sections, compared to an original plan.

However, contrary to the original plan, the pipeline will flow in the opposite direction to supply oil from Greece to Bulgaria.

This project promises to further upgrade the geopolitical significance of Alexandroupoli, a prospect not embraced by Turkey as the pipeline would reduce the geopolitical importance of the Bosphorus Strait.

The Alexandroupoli-Burgas oil pipeline, to cover a 260-km distance, equally divided between Greece and Bulgaria, is planned to have a 24-inch diameter and capacity of 10 million tons.

Oil will be transported to Burgas’ Lukoil refinery, which will need a capacity boost from 7 to 8 million tons at present to 10 million tons.

The revised oil pipeline plan appears to have the backing of the EU and the USA, as part of Europe’s wider effort aiming for an end of its reliance on Russian fossil fuels.

Officials estimate work on the Alexandroupoli-Burgas oil pipeline will begin in one to two years for a possible launch in three to four years’ time.

 

 

Alexandroupoli infrastructure offering regional gas-hub potential

Posted on by admin

Gas infrastructure being planned and developed at Alexandroupoli, on the edge of northeastern Greece, offers potential to establish this provincial city as a regional gas hub in southeast Europe that will facilitate gas trade and shape regional gas prices.

Gas quantities of between 20 and 30 bcm are expected to be attracted to the region by FSRUs, gas pipelines and a vertical pipeline corridor, covering the wider region.

However, the effort to establish a gas hub in this specific region faces many challenges. Besides bringing in large gas quantities and offering competitive prices as well as high liquidity, all needed to lure players from other hubs and neighboring markets, the region also requires a major reinforcement of the transport system, along with a significant increase in the capacity of the recently launched Greek-Bulgarian IGB gas pipeline.

The absence of a gas hub in southeast Europe and the prospective accumulation of quantities up to 30 bcm in Alexandroupoli offers great potential for the provincial Greek city, as was pointed out by a leading energy ministry official during last weekend’s launch of a new power station in the area.

Attracting significant gas quantities to the location is a first step. It must be followed up by the establishment of a gas spot market in Greece, one capable of increasing interconnectivity in the southeast European market.

Greece promises to serve as an entry point for the aforementioned natural gas vertical corridor, to run through Bulgaria, Romania, Hungary, Ukraine and Moldova.

This project, to utilize existing infrastructure combined with new infrastructure, will incorporate the Trans Balkan Pipeline, which transported Russian gas to southeast Europe via Ukraine for thirty years and is now set to operate with gas flow in the opposite direction.

Copelouzos: Alexandroupoli FSRU to transport gas to Ukraine

Posted on by admin

Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, a floating LNG terminal now being developed in Greece’s northeast, will also install an additional FSRU unit at the location, the group’s chief, Dimitris Copelouzos has asserted in comments to media, noting the facility will be capable of transporting natural gas to Ukraine.

According to sources, the Copelouzos group has already held preliminary talks with officials of the embattled country on the prospect of natural gas supply from Greece’s northeast.

A second Alexandroupoli FSRU is expected to be completed in 2025, as an addition to the first terminal at the location, now nearing completion.

The Copelouzos group chief, asked by journalists on the route to be used for transporting natural gas to Ukraine, responded: “Via the pipeline that is now empty,” a reference to the Trans Balkan Pipeline, which transported Russian gas to Greece through the Sidirokastro entry point in the country’s northeast until early 2020.

This route was replaced by Turk Stream in early 2020 so that Ukraine could be bypassed.

The Trans Balkan Pipeline runs from Russia, crossing Ukraine, Moldova and Bulgaria, before branching out to Greece and Turkey.

Investments, including compressor stations in Bulgaria, will be needed to fully utilize the capacity offered by the Trans Balkan Pipeline, sources pointed out.

Joint RES projects with Bulgaria proposed in Greek Embassy study

Posted on by admin

The Greek Embassy in Sofia has proposed the development of business clusters for joint RES projects with Bulgaria.

This proposal for synergies and cooperation with Bulgaria in the RES sector resulted from a study on “Renewable Energy Sources (RES) in Bulgaria: Opportunities, Challenges and Prospects”, recently carried out by the Greek Embassy’s Office of Economic and Commercial Affairs.

Renewable energy opportunities promise to not only promote economic cooperation but also research and innovation in the RES sector, the study noted.

Expanded strategic cooperation between Greece and Bulgaria in the energy sector could be extended to also cover the development of cross-border RES projects, the study determined. These projects could offer significant benefits to both countries, it added.

Greek economic diplomacy, in the context of a further strengthening of bilateral economic relations with Bulgaria, should undertake initiatives to inform private enterprises in Greece of opportunities that exist in Bulgaria for the development of joint projects in the RES sector, and to also offer assistance should interest exist for the establishment of business clusters, possibly with the public sector’s participation as a coordinator or investor, the study noted.

Greece becoming a key gas exporter, rise in loads relayed

Posted on by admin

Greece is developing into a major exporter of natural gas with roughly one in three shipments that reach the country relayed to other countries, well over last year’s level of 9.8 percent.

Russia’s war on Ukraine has increased the geostrategic importance of Europe’s south, including Greece, in terms of gas transportation, supply routes from the continent’s south to north now dominant, a reversal of the flow in previous decades.

LNG shipments to Greece supply a large number of landlocked European countries, all the way north to Ukraine. As a result, Greece’s gas exports have skyrocketed in 2022.

In the first eleven months this year, the country’s gas exports reached 26 TWh, more than triple the level recorded for all of 2021, when the year’s gas exports totaled 7.6 TWh.

Greece’s gas exports are expected to rise even more in 2023 as a result of last October’s launch of the IGB pipeline running from Greece to Bulgaria.

Technical solutions are now being sought so that gas exports can also be made via the IGB pipeline as soon as the Alexandroupoli FSRU, a project led by Gastrade, is launched in late 2023. The Alexandroupoli LNG terminal’s arrival will further boost Greece’s capacity to export gas.

 

 

PPC business plan well received by US, European funds

Posted on by admin

Power utility PPC’s business plan has been well received by major international funds at a London roadshow co-organized by the Athens bourse and Morgan Stanley and involving 29 Greek companies, ten of which are from the energy sector.

PPC’s administration has held over 30 meetings with American funds such as Sandglass and Manulife, as well as European funds, including the UK’s Senvest, Polygon and TFG Asset management, which were informed on PPC’s business potential. Emphasis was placed on decarbonization, new RES projects, growth prospects in foreign markets, and digitization.

The meetings have included one-on-one meetings between PPC’s chief executive Giorgos Stassis and CEOs of foreign funds, who were offered detailed presentations of PPC’s business plan.

Some of these funds are already familiar with PPC’s activities and objectives, while others have only just begun showing interest, either through thoughts of purchasing company shares or participation in two PPC bond issues, a 775 million-euro bond maturing in 2026 and a 500 million-euro bond maturing in 2028.

PPC, emerging from the energy crisis unscathed and implementing its business plan without deviations, despite the challenging international environment, expects its EBITDA figure this year to reach between 800 and 900 million euros, approximately the same as last year, with a similar or improved performance next year.

PPC’s business plan foresees investments worth 9.3 billion euros over the next four to five years, 55 percent of the investment sum in renewable energy, 20 percent in electricity distribution networks, 7 percent in conventional energy sources, 4 percent in waste-to-energy production, and 3 percent in retail energy.

In geographical terms, 85 percent of PPC’s investments are planned for within Greece, the other 15 percent planned for the Balkans, primarily in Romania and Bulgaria.

PPC plans to invest 2.3 billion euros in 2023, 2.5 billion euros in 2024, 1.7 billion euros in 2025 as well as 2026.

These investments are expected to contribute to Greece’s improved energy self-sufficiency, reducing electricity imports to 10 percent in 2026 from 18 percent in 2020.

 

 

Revythoussa LNG slot prices soar, driven by Balkan exports

Posted on by admin

Driven by LNG export potential to Bulgaria and the wider eastern European region, energy companies have submitted bids of between 3.5 and 4 million euros for slots at gas grid operator DESFA’s LNG terminal on the islet Revythoussa, just off Athens.

These bids, made at an ongoing DESFA auction offering slots for the next four years, are roughly three-and-a-half times higher than price levels recorded last year.

Two Bulgarian companies, Bulgargaz and Kolmar, as well as Greece’s power utility PPC and Motor Oil, were the winning bidders at the auction’s session yesterday, securing four of eight Revythoussa slots offered. The other four slots are expected to be taken by bidders today.

Earlier in the week, on Monday, gas company DEPA secured eight slots for 4 TWh, Mytilineos secured five slots for 5 TWh, as did and Bulgaria’s MET.

Greece’s recent transformation as a strategic gas exporter for the wider region has prompted a surge in demand for slots at the Revythoussa LNG terminal.

During the year’s first nine-month period, the country’s gas exports increased by 293 percent, representing over 20 TWh. Bulgaria was the main recipient. Greece has been covering the neighboring country’s gas needs for some months now, following natural gas pipeline disruptions from Russia.

 

PPC eyeing Balkan RES buys, 500-600 MW, as next big move

Posted on by admin

Power utility PPC, eyeing a big renewable energy move in the Balkans, is considering five different RES portfolio acquisitions in Romania and the Balkans, believed to represent a total capacity of 500 to 600 MW.

If carried out, these prospective deals, worth millions, would represent one of PPC’s biggest investments in recent years.

The Balkan acquisitions being examined by PPC concern solar, wind and other RES technologies in Romania as well as mature portfolios held by European corporations such as Enel and Siemens Gamesa, plus a variety of prospects in Bulgaria.

PPC’s examination of these investment prospects is believed to have reached an advanced stage.

The power utility has also made clear its intentions for the acquisition of a major vertically integrated group in the Balkan region, without revealing any further information.

Such moves would help PPC subsidiary PPC Renewables achieve its RES portfolio target for 2023, set at 1.5 GW.

PPC’s role in the energy crisis, offering crucial support to households and businesses under pressure, has held back a number of company plans, including takeovers abroad.

RAE seeks equality on Brussels plan for gas consumption restrictions in EU

Posted on by admin

RAE, the Regulatory Authority for Energy, has called for natural gas consumption restrictions to also be imposed on neighboring Bulgaria, a country to which Greece exports gas, if Athens is subject to such a European Commission restriction.

The authority reasons that the same rules should apply for all EU member states in the event of serious gas supply disruptions to Europe, energypress sources noted.

“Greece cannot adopt mandatory consumption reduction measures of 10 percent or 15 percent in industry, for example, while, at the same time, a similar effort is not being made in countries to which we are called upon to export gas in the context of EU solidarity,” one local source pointed out.

The European Commission proposal for gas consumption restrictions, still not approved, will soon be forwarded by RAE for consultation in a process involving ACER, Europe’s Agency for the Cooperation of Energy Regulators, as part of the effort to prepare as best as possible ahead of the forthcoming winter, which could be challenging.

Wholesale power up 238% in second quarter, EU’s second-highest rise

Posted on by admin

Greece’s wholesale electricity price registered Europe’s second-biggest annual increase in the second quarter of 2022, compared to the equivalent period a year earlier, soaring 238 percent, a new report published by the European Commission has shown.

France topped the list with a 254-percent increase over the same period, while Italy was ranked third-highest, its wholesale electricity price rising 234 percent between the second quarters of 2021 and 2022.

Greece’s 238-percent increase resulted in the country having the third-highest wholesale electricity price in the EU in the second quarter this year, at 237 euros per MWh, behind Malta, at 252 euros per MWh, and Italy, at 249 euros per MWh.

Elsewhere in the EU, Bulgaria’s wholesale electricity price in the second quarter this year was 199.9 euros per MWh, France registered 226.3 euros per MWh, and Germany was at 187.1 euros per MWh, the report showed.

As for industrial energy prices, without taxes, Greece topped the list in the second quarter. Electricity prices for mid-size industrial consumers rose by 194 percent in Greece between the second quarters of 2021 and 2022, to 34.5 cents per KWh, the highest in the EU.

In the household category, Greece’s electricity prices, including taxes and fees, were ranked 10th in the EU, at 30.46 euros per KW/h, above the EU average of 28.62 euros per KW/h, following the second-biggest annual increase, 81 percent, exceeded only by Estonia.

Subsidies were not taken into account for this report. During the energy crisis, Greece has so far offered the highest amount of subsidies as a percentage of GDP.

 

DEPA Commercial gas storage in Italy, Bulgaria, 200,000 MWh

Posted on by admin

DEPA Commercial has stored away, at facilities in neighboring Bulgaria and Italy, natural gas quantities for a total of 200,000 MWh, slightly less than one third of the 622,440 MWh the company is expected to store through a Preventive Action Plan established by RAE, the Regulatory Authority for Energy.

DEPA Commercial began its effort by storing natural gas at Bulgaria’s Chiren facility and, over the past 15 days or so, has also been storing away gas quantities in Italy.

DEPA Commercial, like all main gas suppliers licensed to use the country’s gas network, is expected to make these gas reserves available for all of the upcoming winter period, or, more specifically, from November to March.

These gas reserve amounts stocked up through the Preventive Action Plan are planned to play a protective role should Moscow make changes to deliveries of pipeline gas quantities.

Gas suppliers whose imports represent no more than 1 percent of the country’s total gas imports have been exempted from RAE’s gas storage requirement.

DEPA Commercial is Greece’s biggest gas importer, requiring the company to establish gas reserves for 622,440 MWh. The top three include Mytilineos, which must store away gas for 267,900 MWh and Promitheas Gas with 137,940 MWh.

 

European resolve for crisis solution containing gas prices

Posted on by admin

The growing resolve of European officials to find solutions that could contain gas prices is already producing results, as highlighted by a significant price reduction of just over 30 percent over the past week.

Germany appears to have changed stance by joining EU member states of the south in their call for a cap on natural gas, now being examined by the European Commission following a delay of many months.

Germany’s public admission that a single European solution is needed to counter the energy crisis, an acknowledgment coming after the country previously blocked proposals forwarded by Europe’s south, has swiftly impacted energy markets.

Yesterday’s news of a new Russian gas supply disruption through Nord Stream I, under the pretext of maintenance requirements, did not prompt a further increase in gas prices, as would be expected, but, instead, resulted in a price reduction. The TTF index fell yesterday to 239 euros per MWh, down from a record level of 346 euros per MWh on August 26, a 31 percent drop over the one-week period.

This reduction has filtered through to today’s wholesale electricity prices around Europe. They fell to 635 euros per MWh in France, 571 euros per MWh in Germany, 661 euros per MWh in Italy, and 582 euros per MWh in Greece and Bulgaria. The price level for Greece is approximately 100 euros lower compared to yesterday.

 

September LNG quantities lower but still considerable

Posted on by admin

Natural gas quantities to be shipped to the Revythoussa islet LNG terminal just off Athens will total 562,000 cubic meters in September, below the 609,000 cubic meters tallied in August, but equally important for the country’s energy sufficiency effort.

A total of six LNG tankers will moor at the Revythoyssa facility this month, bringing in 13 separate orders.

More specifically, Bulgaria’s MET energy has ordered four shipments for 104,000 cubic meters, Motor Oil is expecting one shipment carrying 36,900 cubic meters, Bulgargaz is awaiting two shipments for a total of 110,00 cubic meters, Mytilineos has placed an order for one shipment carrying 147,700 cubic meters, Elpedison has placed an order for three shipments totaling 62,00 cubic meters, and DEPA is expecting two shipments totaling 100,000 cubic meters.

These orders have been placed to support the country’s gas-fueled power stations during these challenging times, and also to cover energy needs in neighboring Bulgaria, which has stopped receiving Russian gas for some months now.

Bulgaria’s caretaker government is seeking to increase LNG quantities received through Greece to take advantage of the Greek-Bulgarian IGB pipeline’s upcoming launch, expected imminently.

The neighboring country is also in talks with Azerbaijan for increased imports. Sofia has not ruled out new gas supply negotiations with Russia’s Gazprom should other solutions prove insufficient.

IGB gas pipeline nearing launch, doubts dismissed

Posted on by admin

The prospective IGB gas pipeline linking Greece and Bulgaria is believed to be almost ready for its commercial launch, scheduled for October 1, despite recent doubts that were cast over the entire project.

Certain analysts recently questioned whether American LNG supply to Bulgaria, through the IGB pipeline, would go ahead, claiming the new Bulgarian government wants to renegotiate a supply agreement with Russia’s Gazprom.

ICGB AD, the consortium behind the IGB project has announced, in what is seen as a response to the scare, that an auction offering pipeline capacity to users will be held this Thursday through the online platform BALKAN GAS HUB EAD, from 9am to 12pm (Sofia time).

Greek construction company AVAX, developing the project, has set itself an end-of-August objective, which could be stretched to September 8, the latest, to complete pending work and obtain required permits from the Bulgarian authorities.

If all this goes according to plan, the IGB gas pipeline will be ready to operate on October 1.

Greek-Italian grid link repair work subduing power prices

Posted on by admin

The Greek-Italian grid interconnection’s temporary disruption for repair work is offering partial protection against wholesale electricity price increases in Greece.

The temporary-closure period for the grid interconnection, which has been sidelined towards both directions since August 19, has just been extended until September 3 following a request made by Italy’s power grid operator Terna, according to an announcement made by IPTO, Greece’s power grid operator.

Last Friday and Saturday, the wholesale electricity price was 300 euros per MWh higher in Italy compared to Greece.

Under normal conditions, price differences between neighboring markets prompts electricity export activity towards the lower-priced country.

Greek electricity exports were considerable in July, reaching 500 GWh, data provided by IPTO showed. Of this total, 351 GWh was exported to Italy, 253 GWh to Albania, 184 GWh to North Macedonia and 90 GWh to Bulgaria.

Electricity export figures will be subdued in August as a result of the disruption of the Greek-Italian grid interconnection. The link has been closed down for repairs on numerous occasions in recent years.

 

 

European gas storage units nearly 70% full, on course for October target

Posted on by admin

Europe’s gas storage facilities are estimated to be close to 70 percent full in early August, according to data provided by Gas Infrastructure Europe (GIE), representing the continent’s gas infrastructure operators.

Europe’s gas storage units continued being filled at a rapid rate in late July, despite the reduction of Gazprom’s gas supply through the Nord Stream I pipeline, now operating at just 20 percent of capacity.

Given the continent’s current gas storage levels, European authorities are confident an 80 percent objective can be achieved by early October. However, storage level discrepancies between EU member states remains a challenge that needs to be dealt with.

German gas storage units are now 70 percent full, while the level in Italy is higher, at 73 percent. On the contrary, gas storage facility levels are far lower elsewhere, registering 48 percent in Bulgaria, 24 percent in Ukraine and 53 percent in Croatia.

Wholesale power price reaches new record level, €466/MWh today

Posted on by admin

The wholesale electricity market’s day-ahead market price has reached a new record level of 466 euros per MWh for Monday, up from 426 euros per MWh on Friday.

The maximum price has soared to 686 euros, while the minimum price is at 261 euros, demand close to 202 GWh.

Natural gas represents 43.1 percent of the energy mix, followed by renewables (23%), lignite (13%), hydropower (9.5%) and imports (8%).

As for the country’s neighbors, the wholesale electricity price is at 460 euros in Bulgaria and 527 euros in Italy.

 

IGB moves close to launch, ICGB consortium certified

Posted on by admin

The Greek-Bulgarian IGB gas pipeline has moved a step closer towards its launch, expected around the end of this month, following the completion of a certification procedure for the ICGB consortium behind the project.

The European Commission, according to information made available, has approved a certification application submitted by the Greek Regulatory Authority for Energy, RAE, and its Bulgarian counterpart, EWRC.

Greek Prime Minister Kyriakos Mitsotakis and Bulgarian leader Kiril Petkov will both attend the project’s inauguration ceremony in Komotini, northeastern Greece, this Friday, ahead of the project’s commercial launch towards the end of the month.

The two leaders are expected to highlight this project’s contribution to the EU’s ongoing effort to end the continent’s reliance on Russia’s Gazprom.

The IGB gas pipeline will offer an alternative natural gas route into Bulgaria, initially via the TAP route and, from autumn onwards, through Greece’s gas grid. From 2023, the IGB will serve as a gateway for LNG imports from coastal FSRUs in the region. LNG quantities will reach Bulgaria, Romania, even Ukraine, through pipeline interconnections.

Minister: ‘Revythoussa FSU launch by end of this month’

Posted on by admin

An FSU installation at the Revythoussa LNG terminal on the islet just off Athens will begin operating by the end of this month, energy minister Kostas Skrekas has told an Economist conference.

This LNG’s resulting capacity boost, combined with the development of northeastern Greece’s Alexandroupoli FSRU, now under construction, will upgrade the country’s gasification capacity to 15 bcm annually, a level ensuring Greece’s energy sufficiency as well as supply of quantities to neighboring countries.

Greek gas exports to Bulgaria are already covering as much as 80 percent of the neighboring country’s daily gas needs.

Skrekas, at the conference, also made note of Greece’s potential as a gas and green energy hub in the region. Interconnection projects with neighboring countries will play a pivotal role.

Greece’s plans include upgrading a connection with Albania within the next few years, as well as electricity interconnections with Bulgaria and Italy. In addition, a prospective electricity grid interconnection with Egypt promises to facilitate the transportation of up to 3 GW from the north African country to Greece and, by extension, the rest of Europe.

The minister also made note of the IGB pipeline to be inaugurated this Friday by prime minister Kyriakos Mitsotakis ahead of its launch by the end of the month.

DG Energy chief in Athens for talks on range of key projects

Posted on by admin

The European Commission’s Director-General for Energy Ditte Juul-Joergensen will be discussing a range of issues with the energy ministry’s leadership at a meeting in Athens today, including Greece’s role in the Balkans, western Balkan interconnection projects, natural gas reserves ahead of next winter, as well as Greece’s list of projects related to REPower EU, Europe’s plan for an end to the continent’s reliance on Russian energy sources.

Athens’ plan for wholesale electricity market intervention through a mechanism designed to subdue price levels is also expected to be discussed. It still needs to be approved by the European Commission, according to government sources.

The energy ministry is confident this mechanism will be approved by Brussels following a related agreement reached by its leadership during a visit to Brussels in late May. Market officials have remained uncertain.

Greece is expected to seek funding support estimated between 7 and 8 billion euros through the REPower EU initiative for a total of 14 projects supporting energy efficiency and security.

These projects include an upgrade of the gas grid; installation of a new floating storage unit at the islet Revythoussa, just off Athens; the Dioryga Gas FSRU in Corinth, west of Athens; an FSRU at Alexandroupoli, in Greece’s northeast; the Blue Med hydrogen project; the prospective underground natural gas storage facility (UGS) at the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north; IGB and TAP capacity boosts; as well as Greek-Egyptian and Greek-Bulgarian electricity grid interconnections.

Energy ministry officials in Sofia for EU’s first regional energy platform

Posted on by admin

A first regional taskforce for cooperation between EU member states on energy matters, as part of the EU’s Energy Purchase Platform, is scheduled to meet in Sofia tomorrow, as announced earlier this week by European Commissioner for Energy Kadri Simson.

The regional taskforce will concentrate on the year ahead and provide specific regional expertise and know-how to develop and implement the REPowerEU action plan to reduce dependency on Russian fossil fuels, fill storage ahead of next winter and further accelerate the decarbonization of the energy sector.

This meeting comes following Russia’s recent decision to disrupt natural gas supply to Bulgaria as well as Poland.

The Bulgarian government has also organized a coinciding meeting of regional ministers. Greece’s energy minister Kostas Skrekas (photo) and the ministry’s secretary-general Alexandra Sdoukou will participate.

The two Greek government officials will be visiting Sofia on the heels of yesterday’s official launch of work on the Alexandroupoli FSRU, an LNG terminal project intended to diversify the energy sources of Greece and the wider region. Yesterday’s official ceremony was attended by heads of state representing Greece, Bulgaria, North Macedonia and Serbia.

During their visit to Sofia, the Greek energy ministry’s two officials are also expected to take part in a bilateral meeting with Bulgarian energy minister Alexander Nikolov.

This session’s agenda will examine the progress of the IGB gas pipeline, set to be completed and launched in July, and an electricity grid interconnection upgrade between the two countries, whose completion is expected by the end of this year.

The IGB gas pipeline, promising to contribute to the EU’s effort for drastically reduced dependency on Russian energy sources, will offer a second interconnection between Greece and Bulgaria, in addition to the nearby Sidirokastro link.

 

 

Alexandroupoli FSRU development launch today, pivotal project

Posted on by admin

Development of the Alexandroupoli FSRU in Greece’s northeast, a project promising to boost energy security by broadening energy source diversification for Greece and the wider Balkan region, is scheduled to officially commence today.

The prime ministers of Greece and Bulgaria, as well as Serbia’s president, will attend today’s official ceremony. The leaders will highlight the need for energy source diversification in the Balkans and reduced reliance on Russian natural gas.

The Alexandroupoli FSRU promises to establish Greece as a gas hub for transportation of LNG into the EU.

Natural gas consumption in southeast Europe totals between 10 and 11 bcm annually, half this amount provided by Russia.

The Alexandroupoli FSRU, expected to be ready to operate by the end of 2023, is planned to offer a capacity of approximately 5.5 bcm, greatly diversifying gas supply to southeast Europe.

The project is budgeted at 380 million euros, of which 166.7 million euros will be provided through the National Strategic Reference Framework (NSRF).

The Alexandroupoli FSRU will be linked with Greece’s gas grid via a 28-km pipeline, enabling gas supply to Greece, Bulgaria and the wider region, including Romania, Serbia, North Macedonia, Moldavia and Ukraine.

 

Alexandroupoli FSRU project development launch on May 3

Posted on by admin

Development of the Alexandroupoli FSRU, in Greece’s northeast, a project promising to boost energy security and widen energy source diversification in Greece and the wider Balkan region, is scheduled to officially commence on May 3.

The Alexandroupoli FSRU, to be developed and operated by Gastrade, a project-specific consortium established by the Copelouzos group, has become particularly crucial given the energy market challenges faced by the EU following Russia’s invasion of Ukraine and the ongoing war.

The Alexandroupoli FSRU promises to initially offer a new gas transmission corridor to Greece and Bulgaria, and, at a latter stage, to Romania and North Macedonia, helping all these countries reduce their reliance on Russian natural gas.

Completion of the project’s second stage, expected in 2024, promises to double the unit’s capacity and enable natural gas transportation as far as Ukraine.

The Gastrade consortium is comprised of five partners, founding member Elmina Copelouzos of the Copelouzos group, Gaslog Cyprus Investments Ltd, DEPA Commercial, Bulgartransgaz, and DESFA, Greece’s gas grid operator, each holding 20 percent stakes.

All five partners have agreed to offer 2 percent each so that North Macedonia can enter the consortium with a 10 percent stake.

Prime Minister Kyriakos Mitsotakis and his Bulgarian counterpart Kiril Petkov will attend next week’s ceremony marking the start of work on the project.

PM calls emergency meeting after Russia gas cut to Bulgaria

Posted on by admin

Prime Minister Kyriakos Mitsotakis will hold an emergency meeting this afternoon at the government headquarters with the energy ministry leadership’s participation following Russia’s decision yesterday to disrupt gas supply to Bulgaria, following a disruption to Poland.

The Greek leader had a telephone discussion with his Bulgarian counterpart Kiril Petkov this morning, pledging Greek energy-supply support, within the framework of EU solidarity, following Russia’s decision to disrupt supply to the neighboring Balkan country.

This support will most likely stem from Greece’s LNG terminal at Revythoussa, the islet just off Athens, through a partial reservation of this facility’s capacity for Bulgaria’s needs.

Consumption in Bulgarian at this time of the year is low, meaning supply through the Revythoussa unit should help cover the neighboring country’s needs, at least temporarily.

Bulgarian-based MET Energy has already ordered a 142,500 m3 LNG shipment through the Revythoussa terminal.

Revythoussa FSU 12-month rental or permanent solution

Posted on by admin

Greek authorities are making comparisons in preparation for a choice between an FSU one-year rental and a permanent floating storage unit at the Revythoussa LNG terminal as part of a plan to boost the country’s gas storage capacity ahead of next winter.

A decision for a capacity boost at the Revythoussa LNG terminal, with the addition of a fourth unit, has already been reached, highly ranked energy ministry officials have informed. A competitive procedure will be staged for the contract.

The option of renting an FSU for the Revythoussa LNG terminal, a facility operated by DESFA, the gas grid operator, would take approximately two months to complete, sources said.

This solution would make operations at the Revythoussa LNG terminal more flexible as it would enable unloading of two LNG orders simultaneously, instead of just one, as is the case at present.

A disruption of Russian gas supply to the EU would force all member states to try and secure additional LNG shipments.

The second alternative, entailing the installation of a permanent floating storage unit at the Revythoussa LNG terminal, would require more time to complete without offering any additional advantages, compared to the FSU rental, energy ministry officials noted.

Officials at RAE, the Regulatory Authority for Energy, are comparing market data such as domestic gas demand projections, and also considering Revythoussa’s prospects for a bigger role as a natural gas gateway for neighboring countries. Bulgaria and Romania are already using the Revythoussa terminal for LNG imports.