Corinth FSRU

Dioryga Gas FSRU investment decision by Motor Oil in 3Q, clarity needed

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Energy group Motor Oil is expected to wait until the end of summer or early autumn before making an investment decision on the development of its Dioryga Gas FSRU project in Corinth, west of Athens, budgeted at approximately 340 million euros, sources have informed energypress.

Though a market test, staged recently by the petroleum group, proved successful, unclear factors still need to be considered before Motor Oil makes decisions, the sources noted.

Motor Oil requires further clarity on gas grid operator DESFA’s plans for an upgrade of a high-pressure gas pipeline segment from Patima to Livadia, mainland Greece.

During recent consultation on DESFA’s ten-year development plan covering 2023 to 2032, Motor Oil disagreed with this upgrade’s timing, scheduled by DESFA for October, 2027, pointing out the Dioryga Gas FSRU, if developed, is planned to be launched prior to this date, in May, 2025.

Doubled pipeline capacity at the Patima-Livadia segment, unjustifiably delayed, according to Motor Oil, will be needed by the company’s Dioryga Gas FSRU in Corinth.

Furthermore, Motor Oil has reacted against DESFA’s doubled cost, to 19.5 million euros, for the development of a related metering station required for the FSRU’s connection to the gas pipeline network. Motor Oil submitted a request, to the consultation procedure, for this part of the project to be taken on by Ellaktor – a construction company in which Motor Oil holds a stake – under the supervision of DESFA.

Last January, state authorities classified the Dioryga Gas FSRU project as an investment of strategic importance, status offering fast-track licensing.

Motor Oil aims to start ‘Dioryga Gas’ development at end of ‘22

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Petroleum group Motor Oil aims to begin development of its “Dioryga Gas” FSRU project, 1.5 km southwest of the company’s refinery in Korinthos, west of Athens, by the end of the year. The project’s completion would offer a second southern LNG entry point for Greece.

The ongoing energy crisis throughout Europe highlights the importance of such infrastructure, promising supply diversification and energy security.

Motor Oil officials are now working on the next steps leading to the project’s development following a recent successfully completed non-binding market test, which attracted capacity slot offers well over the group’s target of two billion cubic meters.

A binding second-round market test is currently being prepared by Motor Oil officials, according to sources. The procedure is expected to commence towards the end of the second quarter, once it has been approved by RAE, the Regulatory Authority for Energy.

According to the company plan, an investment decision will follow, either late in the third quarter or early in the fourth quarter, paving the way for the beginning of construction towards the end of the year and an estimated launch in the final quarter of 2023.

The “Dioryga Gas” FSRU project has been included in gas grid operator DESFA’s ten-year development plan covering 2021 to 2030.

Its total capacity is planned to reach 210,000 m3, while regasification is planned at 132,000 MWhs per day and 2.5 bcm annually.

Vertical integration, diversification, FSRU behind MOH Komotini plant role

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Petroleum group Motor Oil Hellas’ intent to further bolster its position in the electricity market is highlighted by its decision to participate, with a 50 percent stake, in a new natural gas-fired power station being jointly developed with GEK Terna in Komotini, northeastern Greece.

More specifically, MOH’s involvement in this project can be linked to three key strategic reasons: vertical integration; market diversification beyond the refining sector; and the market role of the group’s planned FSRU in Korinthos, the Dioryga Gas project.

MOH’s participation in the Komotini natural gas-fired power station, coming as an addition to another such unit, Korinthos Power, in which the petroleum group holds a 35 percent stake, is expected to further bolster its vertical integration in the electricity market.

MOH, in the retail electricity market, is represented by supplier NRG, a company displaying dynamic growth with market share gains.

The group’s acquisition of a 50 percent stake in the Komotini power plant, to offer an 877-MW capacity, will boost its presence in electricity production and creates further opportunities for trade synergies.

The group’s Dioryga Gas project in Korinthos promises to supply large LNG quantities to the Komotini power station.

According to some sources, MOH is also discussing a possible entry, as a stakeholder, into other natural gas-fired power stations that are currently being developed, so that these, too, may be supplied with LNG by the group.

Motor Oil ‘Dioryga Gas’ FSRU on DESFA 10-yr plan, set to roll

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Approval by RAE, the Regulatory Authority for Energy, of gas grid operator DESFA’s ten-year grid development plan, covering 2021 to 2030, with the inclusion of petroleum group Motor Oil’s “Dioryga Gas” FSRU project, 1.5 km southwest of the company’s refinery in Korinthos, west of Athens, paves the way for this unit’s actualization.

Motor Oil anticipates the FSRU, promising to offer yet another natural gas entry point to the domestic system, can be launched by the end of 2023.

To accept LNG via sea routes, the floating storage regasification unit’s capacity is estimated at 2-3 bcm per year.

The “Dioryga Gas” FSRU project was incorporated into DESFA’s ten-year development plan following amendments to a preliminary plan, made once an agreement had been reached between the gas grid operator and Motor Oil.

This agreement ended a dispute between the two sides over the project’s absence from the operator’s ten-year plan. Motor Oil protested against the FSRU’s exclusion, expressing its disapproval to DESFA as well as RAE.

The project’s inclusion on DESFA’s ten-year plan will enable Motor Oil to take investment decisions needed for its development.

The petroleum group is currently also examining the regulatory and commercial frameworks concerning the project with the aim of offering optimal services to users. Motor Oil intends to stage a market test in 2021.

The “Dioryga Gas” FSRU project will ease the saturation pressure on Greece’s other FSRU, on the islet Revythoussa, just off Athens, reinforce gas supply to the Greek market as the country’s LNG storage capacity will increase by 80 percent, and also facilitate further penetration of natural gas in remote parts of the country.

Motor Oil wants Corinth FSRU included in DESFA 10-year plan

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Petroleum group Motor Oil wants a prospective FSRU project for Corinth, west of Athens, included in gas grid operator DESFA’s ten-year plan, it has noted in a letter forwarded to RAE, the Regulatory Authority for Energy, as part of a related public consultation procedure.

A floating LNG terminal at Corinth would offer multiple benefits for the natural gas markets of Greece and the wider southeast European region and, therefore, must be included in DESFA’s ten-year plan, Motor Oil supported in its letter.

RAE has already awarded a license for the project but a decision concerning a future capacity commitment at this new national grid entry point has remained pending since last June.

The project is strategically important as a very large proportion of Greece’s current – and near-future – gas imports enter via Turkish territory, Motor Oil pointed out. The Corinth FSRU would further diversify Greece’s supply sources, without geopolitical risks or restrictions, as the facility will be able to absorb supply from anywhere in the world, the petroleum group added.

This FSRU would ease congestion at the existing Revythoussa unit off Athens and contribute to energy supply security, Motor Oil, operating a major refining facility in Corinth, also noted among other factors.

ESAI/HAIPP, the Hellenic Association of Independent Power Producers, has also expressed support for the Corinth FSRU, noting, in its letter, the facility would offer a new gas grid entry point, desaturate Revythoussa and help offer more competitively priced natural gas to the Greek market.