Bulgartransgaz

Alexandroupoli FSRU on track for early-2024 launch

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Development of the Alexandroupoli FSRU at the country’s northeastern port is progressing steadily and set for an on-schedule launch by the end of January, 2024, energypress sources have informed.

Tanker conversion work being conducted for the FSRU at Singapore’s Keppel Shipyard was 87.1 percent ready at the end of August, meaning all basic equipment, including burners and gasifiers, has been installed, the sources added.

Representatives of Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, visited the Keppel Shipyard just days ago.  The consortium’s chief executive, Kostis Sifneos, headed the visiting group.

The consortium’s members – the Copelouzos group’s Elmina Copelouzou, Gaslog Cyprus Investments Ltd, DEPA Commercial, Bulgartransgaz and Greek gas grid operator DESFA, all holding 20 percent shares – plan to soon hold a meeting to discuss the project’s steps leading to its launch, the sources added.

The FSRU vessel is expected to be ready to set sail for Alexandroupoli in mid-November, before reaching its destination in early December.

The Alexandroupoli FSRU, to offer a 153,500-m3 LNG capacity, will be connected to Greece’s gas network via a 28-km pipeline, through which gasified LNG will be distributed to the domestic market, Bulgaria, Romania, Serbia, North Macedonia, Hungary, Moldova and Ukraine.

The project will serve as a new energy gateway promising to play a key role in the energy security and independence of Greece as well as central and southeast Europe.

IPCEI support sought by DESFA, Bulgartransgaz for hydrogen projects

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Greek gas grid operator DESFA and its Bulgarian counterpart Bulgartransgaz, which have strengthened ties in recent years, aim to secure development support for two common hydrogen-related projects via IPCEI (Import Projects of Common European Interest) status, which, if obtained, would pave the way for EU funds stemming from the Connecting Europe Facility (CEF).

One of the two projects concerns an upgrade of existing gas infrastructure belonging to the two operators so that – in the future, when the technology is ready – they may also transmit renewable gas, in other words, hydrogen made using renewable energy or biomethane produced from organic waste such as human or animal sewage or food.

The second of the two DESFA-Bulgartransgaz projects eyeing CEF funding support entails developing a brand new main system of pipelines, exclusively for renewable gas transmission, between Greece and Bulgaria.

This project would serve as a key decarbonization tool for the two countries, as well as the wider region, aiding climate-neutrality efforts by incorporating hydrogen into the energy mix.

Gastrade decides on additional Alexandroupoli FSRU by 2025

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Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, a floating LNG terminal planned for Greece’s northeast, has reached a decision to also install an additional FSRU unit at the location, expected to be completed in 2025, as a follow-up to the first terminal, set for completion in 2023.

The consortium’s decision for an additional FSRU in Alexandroupoli had been in the making from as far back as last summer, when the energy crisis was at its early stages, but was accelerated by the long-term turmoil now seen in relations between the west and Russia following the latter’s invasion of Ukraine last week.

Russia’s invasion of Ukraine has further highlighted the need for Europe to reduce its dependence on Russian gas as soon as possible. A completely new reality now appears to be in the making.

Southeastern Europe’s gas needs to result from Europe’s reduced energy dependence on Russia, through strategic diversification, has increased the prospect of Greece’s northeast becoming an energy hub that would facilitate gas exports in all directions, including to 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.

DESFA joining Alexandroupoli FSRU, development imminent

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Gas grid operator DESFA is set to sign a contract next week for the acquisition of a 20 percent stake in Gastrade, the consortium established by the Copelouzos group for the development and operation of Alexandroupoli FSRU, a floating LNG terminal planned for Greece’s northeast, energypress sources have informed.

The European Commission offered its approval of DESFA’s entry into the Gastrade consortium approximately three weeks ago. The endorsement was needed as DESFA, operator of Greece’s gas grid, will also be entering an independent gas system by acquiring a 20 percent of Gastrade, making the operator the fifth member of the consortium.

Besides the Copelouzos group, currently holding a 40 percent stake, the Gastrade consortium is also made up of Gaslog Cyprus Investments, a fully owned subsidiary of Gaslog Ltd, owning and operating over 35 LNG tankers; Greek gas utility DEPA; and Bulgartransgaz, each holding 20 percent stakes. DESFA’s entry will give all partners equal 20 percent shares.

A finalized investment decision on the Alexandroupoli FSRU is expected within the first few days of 2022 so that the project can be developed and ready for launch within 2023.

The Alexandroupoli FSRU has, for years, been included on the EU’s projects of common interest (PCI) list, making the prospective facility eligible for favorable EU funding support, as its actualization will contribute to energy source diversification and also bolster energy security and competition in the wider region.

The Alexandroupoli FSRU will become the country’s fourth entry point for natural gas. It is planned to supply up to 944,000 cubic meters of natural gas per hour, or 8.3 billion cubic meters annually, and offer an LNG storage capacity of 170,000 cubic meters.

DESFA’s Alexandroupoli FSRU entry on Vestager agenda

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The European Commission’s pending approval of gas grid operator DESFA’s acquisition of a 20 percent stake in Gastrade, the company established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, a floating LNG terminal planned for Greece’s northeast, is expected to be on the agenda of an Athens meeting this Thursday between energy minister Kostas Skrekas and the European Commission’s Vice-President Margrethe Vestager, also Brussel’s Commissioner for Competition.

The Greek government considers the Alexandroupoli FSRU to be a pivotal energy supply source for Greece and the EU.

Gastrade’s other participants are awaiting Brussels’ approval of the DESFA entry so that they can go ahead with an investment decision and commence its development.

European Commission approval of DESFA’s participation in the Alexandroupoli FSRU is necessary as the company is the operator of Greece’s gas grid and, by acquiring a 20 percent of Gastrade, would also gain entry into an independent gas system.

The DG Comp’s endorsement of the DESFA entry is seen as a formality following Brussels’ recent approval of the entry of Bulgaria’s Bulgartransgaz as a fourth member of the Gastrade consortium, also with a 20 percent stake.

DEPA Commercial pushing to mature RES licenses in time for auction

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Gas company DEPA Commercial, currently placing emphasis on its alternative business interests, is making efforts to bring to maturity solar energy licenses in time for an upcoming RES auction. These PV licenses concern solar farm projects representing a total capacity of 499.61 MW.

Late in January, DEPA Commercial announced it had acquired a 49 percent stake in North Polar, a special purpose vehicle (SPV) established on the basis of a portfolio carrying solar energy project certificates and production permits. These licenses concern projects in northern Greece’s west Macedonia region.

DEPA Commercial and its SPV partner have submitted environmental terms for these projects and are now expecting their connection terms.

The partners are striving to participate in the next RES auction to be staged by RAE, the Regulatory Authority for Energy, the first to be held under new terms expected to soon be approved by the European Commission.

On another front, DEPA Commercial is closely monitoring developments regarding the Alexandroupoli FSRU in northeastern Greece, another of its project interests.

DEPA Commercial holds a 20 percent stake in Gastrade, a company established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU.

The European Commission’s Directorate-General for Competition still needs to approve Greek gas grid operator DESFA’s entry into the consortium, also with a 20 percent stake, to be taken from the Copelouzos group’s current 40 percent share in the Alexandroupoli FSRU venture.

The Brussels authority’s endorsement of DESFA’s entry is seen as a formality following its recent approval of the entry of Bulgaria’s Bulgartransgaz as a fourth member of the consortium, also with a 20 percent stake. Gaslog is the other consortium member, also holding 20 percent.

The DESFA entry approval is anticipated within the second quarter. Gastrade’s partners are then expected to swiftly follow with an investment decision on the Alexandroupoli FSRU’s construction.

DESFA’s Alexandroupoli FSRU entry awaiting DG Comp OK

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Gas grid operator DESFA’s agreement, last November, for the acquisition of a 20 percent stake in Gastrade, the company established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, a floating LNG terminal planned for Greece’s northeast, requires, as its final step, approval from the European Commission’s Directorate-General for Competition, to officially make the operator the consortium’s fifth member.

DG Comp approval of DESFA’s agreement is needed as the operator, managing Greece’s gas transmission system, is entering an independent gas system through its agreement to buy a Gastrade stake.

The DG Comp’s endorsement of the anticipated DESFA entry is seen as a formality following its recent approval of the entry of Bulgaria’s Bulgartransgaz as a fourth member of the consortium, also with a 20 percent stake.

A finalized investment decision by Gastrade for the development of the Alexandroupoli FSRU is expected this spring. The unit’s launch is scheduled for the first half of 2023.

The FID will enable the procurement procedure for the project’s equipment to go ahead, beginning with the floating unit, for which a Gastrade tender has already been completed.

A preferred bidder has also been declared for the FSRU’s subsea-and-overland pipeline, to link the floating unit with the country’s gas grid.

Bids for a tender offering a contract for the design, procurement and construction of the project’s fixed mooring system were submitted in late-February.

Talks are still in progress, at a diplomatic level, for the possible entry into the Alexandroupoli FSRU by North Macedonia’s state gas company, through the acquisition of a 10 percent stake from Gastrade. The outcome of these talks will not affect the project’s development.

Alexandroupoli FSRU 2Q investment decision, work to start in ’21

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The shareholders of Gastrade, a company founded by the Copelouzos Group for the development and operation of the Alexandroupoli FSRU planned for Greece’s northeast, are gearing up for an investment decision, expected in the second quarter, ahead of the beginning of the project’s development, anticipated within the current year.

Gastrade’s shareholders will most likely make an investment decision in May, sources informed.

The consortium’s shareholders are currently awaiting final administrative details that will formalize the entry into Gastrade of Bulgaria’s Bulgartransgaz and DESFA, the Greek gas grid operator.

Last week, Thanassis Dagoumas, the head official at RAE, the Regulatory Authority for Energy, approved the transfer of a 20 percent Gastrade stake from the Copelouzos Group’s Asimina Eleni Copelouzou to the Bulgarian gas company.

Copelouzou now controls 40 percent of Gastrade, with three stakeholders, Gaslog, DEPA Commercial and Bulgartransgaz each holding 20 percent.

Within the next few weeks, the RAE chief is also expected to endorse a further 20 percent transfer from Copelouzou to DESFA, giving the consortium’s five partners equal shares of 20 percent each.

Gastrade has already announced a tender offering an EPC contract for the floating LNG terminal in Alexandroupoli. Participants face a February 18 deadline.

An investment decision promises to push forth engineering studies, including geotechnical, as well as the order of a floating vessel for the project during the year. The FSRU will be completed in 2023, Gastrade shareholders have announced.

The shareholders appear receptive to the idea of North Macedonian involvement in the Gastrade consortium. They are awaiting bilateral developments at a diplomatic level, sources informed.