DEPA Commercial

DEPA Commercial: LNG truck loading fee inhibiting growth

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Gas company DEPA Commercial has objected to gas grid operator DESFA’s proposal for maintenance, in 2024, of an LNG Truck Loading surcharge at last year’s level of 650 euros per load, preferring, instead, lower fees for this service.

DESFA, defending its price-maintenance position in public consultation conducted by RAAEY, the Regulatory Authority for Waste, Energy and Water, noted that a hike of this surcharge would create more obstacles for the LNG Truck Loading service and possibly destabilize the market, while a reduction jeopardize the recovery of related investment costs.

DESFA, as a result, concluded that maintaining the LNG Truck Loading surcharge’s current level would offer stability to the market by enabling users to further test the new LNG Truck Loading service and enhancing market growth.

Expressing its disagreement, DEPA Commercial called for a reduction of the LNG Truck Loading surcharge, stressing it was introduced as a temporary fee that would become permanent if DESFA’s stance on the matter were adopted.

Elaborating further, DEPA Commercial pointed out that the cost burden on users, which is ultimately passed on to consumers in the retail market, would lead to two adverse effects. Firstly, LNG slot-reservation growth would be inhibited and, secondly, LNG market penetration would become more difficult for industrial consumers and others who are distanced from networks and would prefer to stop using higher polluting fuels.

The LNG Truck Loading service was launched last November following a trial run in spring, 2023 with participation from Blue Grid, DEPA Commercial and Motor Oil Hellas.

Gas market’s established suppliers still dominant in ’23

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The country’s top five natural gas retailers, supplying industrial, business and residential consumers, remained dominant in the Greek market in 2023.

Zenith, Aerio Attikis, Mytilineos, Heron and DEPA Commercial, the top five players for all three categories combined, all maintained their positions last year. NRG ended last year in sixth place, overtaking Elpedison.

Zenith and Aerio Attikis, the top two gas retailers for all categories, were also the most dominant players in the residential sector for 2023, capturing a combined market share of 74.1 percent, or 433,896 households of 585,432 in total.

Zenith and Aerio Attikis led the pack, overall, in the industrial, business and residential, with respective market shares of 30.8 and 28.6 percent in 2023. Zenith’s market share fell from 34.4 percent in 2022, while Aerio Attikis’ market share was unchanged.

In the overall rankings, for all three categories, Mytilineos was ranked third with a 14.9 percent market share, up from 12.6 percent. Heron followed with 10.2 percent, up from 9.4 percent, and DEPA Commercial was placed fifth in 2023 with a market share of 5.7 percent from 4.8 percent in 2022.

As for the residential market, Zenith was ranked first with 276,157 customers, slightly down from 289,632 in 2022, and Aerio Attikis followed with 157,739 customers, up 12,696 from 145,043 in 2022.

Third-placed Mytilineos gained 9,011 residential customers in 2023 to reach 34,385, while other standout gainers in this category included sixth-placed PPC, up 8,523 customers to 30,344, and fifth-placed Heron, up 6,162 customers for a 28,313 total.

As for the business category, the total number of gas meter connections fell slightly in 2023 to 16,135 from 16,233, partially as a result of the energy crisis and higher gas prices over several months last year.

 

 

LNG demand in trucking, industrial sectors to rise in ’24

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LNG demand in the trucking and industrial sectors, through gas grid operator DESFA’s LNG truck-loading service, enabling refueling of consumption points situated at a distance from the country’s gas network, appears set to rise in 2024, energypress sources have informed.

An increasing interest by market players for more time slots at DESFA’s truck-loading infrastructure, maintained by the operator at its Revythoussa terminal to load tankers, serves as a definite sign of the anticipated rise in LNG demand.

DESFA’s truck-loading infrastructure was launched in October 2022, while a first operational test took place in March, 2022. Three companies, Blue Grid, DEPA Commercial, and Motor Oil Hellas, took part in the testing with LNG trucks. The service has since been operating without issues and offers potential to serve a larger capacity.

Two industrial producers, Fthiotis Papermill, in central Greece, and dairy company Kolios, in Kilkis, northern Greece, have completed developing LNG storage and gasification facilities that are expected to begin operating in March.

At least ten more industrial producers appear interested in following suit by the end of 2024, sources have informed.

LNG appears set to play a bigger role in the heavy-transportation sector, the majority of cargo transfers planned for export to North Macedonia and Bulgaria.

Four refueling stations being prepared by Blue Grid in Athens, Thessaloniki, Patras and Ioannina will help broaden the LNG truck-loading market. The first two of these four stations – in Thriasio, on Athens’ western outskirts, a collaboration with Elin, and in Thessaloniki’s Sindos area, a collaboration with Kolokithas Fuels, are planned to be ready early April.

LNG usage by trucks promises operating cost savings of as much as 30 percent and significantly improved performance in terms of environmental impact.

Helleniq Energy: Clarity needed on DEPA Commercial future

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The future of gas company DEPA Commercial, whose privatization of the state’s 65 percent stake was postponed about a month ago, needs to be clarified in the immediate future, within the next three to six months, Andreas Siamisiis, chief executive of the Helleniq Energy group, holding a 35 percent stake in the gas company, has noted.

DEPA Commercial is currently developing business interests that directly compete against those of Helleniq Energy. These interests include participation in new gas-fueled power stations, both in Greece and abroad.

Subsequently, the current status, under which Helleniq Energy holds a 35 percent in DEPA Commercial, cannot be maintained. Helleniq Energy will need to sell its stake in the gas company, possibly to the Greek State or a third party.

Greek privatization fund TAIPED postponed its sale of DEPA Commercial until the company’s business plan, which includes an expansion strategy, begins reaping rewards, effectively meaning that no further steps concerning the company’s sale should be expected before late 2024 or early 2025.

As for Helleniq Energy, the company intends, in 2024, to intensify its efforts in the Bulgarian RES market, especially photovoltaics.

Helleniq Energy currently holds a 360-MW portfolio of RES projects in operation, along with projects at advanced stages of development, which, once launched, promise to boost the group’s total RES capacity to 1 GW over the next 18 months.

Besides its interests in renewables, Helleniq Energy is monitoring the sale process of Russian multinational energy corporation Lukoil’s refinery in Bulgaria. It is the only refinery in the neighboring country.

Although a Helleniq Energy move to acquire this refinery is hard to imagine, as it would run contrary to the group’s transformation plan, it cannot be ruled out as any new buyer might be interested in exporting fuel to Greece. Helleniq Energy may choose to buy the Lukoil refinery to block further competition in the Greek market.

Whatever the outcome, Helleniq Energy would not be prepared to spend big on such an acquisition.

 

 

DEPA, Gazprom talks stand better chance of agreement

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Long-running negotiations between Greek gas company DEPA Commercial and Russia’s Gazprom, which commenced late in 2022, now stand a better chance of resulting in an agreement, energy ministry sources have informed.

The talks between the two sides are dealing with possible price revisions as well as a compensation claim, by Gazprom, concerning an existing agreement running until the end of 2026.

DEPA Commercial is seeking a greatly improved supply price for 2024 as well as a retroactive price decrease from January 1, 2023, while Gazprom is pushing for a compensation payment based on a take-or-pay agreement signed with the Greek company.

The Russian company is demanding compensation over DEPA Commercial’s alleged failure to fully absorb an agreed 17 TWh gas quantity in 2023.

The Greek side has refused to acknowledge the Russian claims, arguing that its non-absorption of specific quantities has resulted from a violation of the contract by Gazprom.

The contract requires the Russian company to supply DEPA Commercial at a price ensuring a competitive advantage over rivals in the Greek market, but this has not been achieved for quite some time, local sources contended. Gazprom has been supplying both lower-priced LNG and natural gas to at least one of DEPA Commercial’s domestic competitors for months, the sources pointed out.

Despite these dealings, Greece’s energy ministry insists the country is pushing to completely end its reliance on Russian gas, in line with the overall EU strategy.

 

DEPA Commercial 35% stake in Albanian gas-run power plant

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Gas company DEPA Commercial is set to acquire a 35 percent stake in Fier Thermoelectric SA, a company co-founded in September, 2022 by the GEK TERNA group and Albania’s GENER2, for the development of a 174-MW gas-fueled power station in Roskovec, south-central Albania, the first of its kind in the neighboring country.

DEPA Commercial’s board has just approved the company’s entry into Fier Thermoelectric SA, a significant investment diversifying its portfolio.

As part of the agreement, DEPA Commercial has signed a long-term agreement for gas supply to the Roskovec power station.

This new power plant promises to enable Albania to significantly reduce electricity imports and manage the country’s growing energy demand with greater efficiency and flexibility.

Konstantinos Xifaras, chief executive at DEPA Commercial, noted: “DEPA Commercial is constantly expanding its activities as a modern, vertically integrated company, particularly in the power generation sector. Following our investments in photovoltaic projects with a total capacity of 815 MW, and our participation in an 840-MW power plant in Alexandroupoli (northeastern Greece), we are entering a new market, that of Albania, by participating in the country’s first thermal power plant. DEPA Commercial is emerging as one of the most dynamically growing energy companies in southeast Europe, steadily participating in and undertaking initiatives that contribute to the energy stability of the region.”

DESFA launches LNG truck loading service, suppliers keen

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Gas grid operator DESFA launched its LNG truck-loading service at Megara, 45 kilometers west of Athens, earlier this week, finally enabling refueling of consumption points located at a distance from the country’s gas network.

The launch, on Monday, was preceded by an extensive performance test of the LNG truck-loading infrastructure last March. Three companies, Blue Grid, DEPA Commercial, and Motor Oil Hellas, took part in the testing with LNG trucks.

Interest in the new service is already strong as gas suppliers appear keen to utilize its flexibility to expand their customer base.

Transportation of LNG via specially designed trucks promises gas supply to industrial consumers, vehicle refueling stations selling gas, areas not connected to Greece’s gas network within Greece, as well as neighboring countries.

Plans are already underway for LNG delivery to distribution networks being developed by gas distributor DEDA in western Greece – in Patras, Agrinio and Pyrgos.

The first LNG station designed to facilitate gas distribution to remote areas was installed in September, 2022 by gas distributor EDA THESS at Elassona, towards Greece’s north. It will supply the local network. The DEPA Infrastructure subsidiary plans to do likewise for gas supply covering other areas, including the Greek islands Skiathos, Skopelos, and Alonissos.

DESFA’s LNG truck-loading initiative represents the first segment of a small-scale LNG supply chain, to be complemented by a small-scale LNG jetty under development at DESFA’s Revithoussa LNG terminal.

This infrastructure will enable bunker vessels to supply LNG-powered vessels, such as cargo ships and container ships, at Piraeus port. It will also allow for ship-to-ship refueling, supporting larger vessels, such as cruise ships.

DEPA Commercial privatization plan postponed until 2024-25

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Gas company DEPA Commercial’s privatization plan has been postponed until its business plan, which includes an expansion strategy, begin reaping rewards, effectively meaning that no further steps concerning the company’s sale should be  expected before late 2024 or early 2025, Greek privatization fund TAIPED appears to have decided.

Besides taking into consideration the potential of a bigger and broader business plan, TAIPED is also weighing in the impact on its plan to sell its 65 percent stake of DEPA Commercial of a long-running legal dispute between the company and fertilizer industry ELFE. The former is seeking unpaid amounts and the latter claims it has been overcharged for gas supply.

This dispute appears set to enter yet another chapter that is most likely to add between one and two years of legal battle following a decision by the Council of State, Greece’s Supreme Administrative Court, to revert the case to an Athens Appeals Court for retrial.

DEPA Commercial’s expansion policy, which includes a 20 percent stake in the prospective Alexandroupoli FSRU in northeastern Greece as well as electricity production in the same region, promises to greatly broaden its business interests, until recently focused on gas trading activity.

TAIPED’s sale of its 65 percent stake in DEPA Commercial at this stage would deprive the Greek State of benefits in the making, industry experts have noted.

TAIPED has reportedly commissioned Piraeus Bank to reevaluate DEPA Commercial’s broadened business plan and determine when, and to what extent, it should begin maturing and generating added value.

DEPA Commercial tender soon for PV parks totaling 495 MW

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Gas company DEPA Commercial aims to announce, by the end of the year, a tender for the design, procurement and development of its first renewable energy projects, energypress sources have informed.

The tender will concern two projects totaling 495 MW, most of this capacity, 400 MW, for solar energy farms in Kozani, northern Greece, plus 95 MW for solar energy farms in Viotia, slightly northwest of the wider Athens area.

DEPA Commercial, which has shaped a new company strategy striving for vertical integration by also becoming an electricity producer, last year acquired New Spesconcept, holding a 222-MW RES portfolio, and North Solar, possessing a RES portfolio of 500 MW.

Besides its entry into the RES sector, with prospective solar energy projects totaling approximately 730 MW, DEPA Commercial also intends to partner with power utility PPC and the Copelouzos group in a new 840-MW combined-cycle power plant being planned for development in Komotini, northeastern Greece.

Also, DEPA Commercial, as part of its new strategy, has undertaken initiatives to expand its wholesale trading activity in foreign markets. This effort has significantly intensified over the past two years.

At present, DEPA Commercial is active in the Austrian, Hungarian, Romanian and Italian markets and has signed agreements to supply gas to Moldova and Albania.

DEPA Commercial, it should be noted, is the first Greek gas company to have become a member of the Hungarian Energy Exchange (CEEGEX).

The Hungarian market represents a pivotal gas trading hub in central Europe and is also located at the northern end of the prospective Vertical Corridor, a route running from Greece to Bulgaria, Romania and Hungary that will be created by interconnecting the transmission systems of these four countries to enable two-way transport of fuel between south and north.

DEPA Commercial privatization set back, ELFE case continues

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A long-running legal dispute between gas company DEPA Commercial and fertilizer industry ELFE is set to enter yet another chapter estimated to add between one or two years to the ordeal, following a decision by the Council of State, Greece’s Supreme Administrative Court, to revert the case to an Athens Appeals Court for retrial.

This delay is sure to further undermine the DEPA Commercial privatization plan, which has been put on hold by Greek privatization fund TAIPED as a result of the ongoing legal battle between the gas company and ELFE, as well as the energy crisis.

ELFE filed a case with the Council of State in February, 2022 to challenge an Athens Appeals Court verdict in favor of DEPA Commercial over an alleged debt amount of 120 million euros owed by the fertilizer industry to the gas company.

ELFE maintains the right to take its case back to the Supreme Court should the Athens Appeals Court rule against it in the new hearing.

Should ELFE be vindicated, highly unlikely, according to pundits, then other DEPA Commercial customers can be expected to also take legal action, for overcharging, against the gas company. Such a development would further complicate the privatization plan for DEPA Commercial.

TAIPED, the privatization fund, controls 65 percent of DEPA Commercial, while Helleniq Energy, formerly known as Hellenic Petroleum, holds a 35 percent stake. The two shareholders, as previously reported by energypress, have planned to combine efforts for a bourse listing of DEPA Commercial.

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.

Two alternatives for DEPA Commercial bourse listing

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Two primary alternatives being considered for the privatization of DEPA Commercial, a process that seems to have regained momentum, seem to be the most probable courses of action, sources have indicated.

Both options being considered would result in DEPA Commercial’s listing on the Athens stock exchange.

Through one of the two possible alternatives, DEPA Commercial’s two shareholders, privatization fund TAIPED, holding a 65 percent stake in the gas company, and Helleniq Energy, formerly named Hellenic Petroleum, would each contribute portions of their equity in DEPA Commercial for its entry into the Athens bourse.

The other alternative being examined would entail the sale of Hellenic Petroleum’s 35 percent stake in DEPA Commercial to the Greek State, which, in turn, would make this equity available on the bourse.

DEPA Commercial’s privatization plan had been put on hold as a result of the energy crisis and an ongoing legal battle between the gas company and fertilizer industry ELFE.

The Greek State has intervened in the gas market, through DEPA Commercial, to implement measures designed to control gas prices and secure energy sufficiency.

DEPA Commercial privatization plan now being reexamined

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Greek privatization fund TAIPED is reconsidering a privatization plan for its 65 percent share of gas company DEPA Commercial after having put the plan on hold as a result of the energy crisis and an ongoing legal battle between the gas company and fertilizer industry ELFE.

The de-escalation of the energy crisis and the renewed possibility of a further sale of Helleniq Energy shares – Helleniq Energy holds a 35 percent stake in DEPA Commercial –  are two key developments that have prompted TAIPED to reexplore the DEPA Commercial privatization.

DEPA Commercial enables the Greek State to intervene effectively, facilitating measures to control gas prices and secure energy sufficiency.

According to sources, the privatization fund is in talks with Helleniq Energy to identify an optimal solution that would maximize value for DEPA Commercial shareholders. Also, it should be noted that Helleniq Energy has made clear its intention to divest from DEPA Commercial.

A bourse listing of a package of DEPA Commercial shares on the Athens stock exchange is seen as the most likely outcome. If so, the Greek State would retain its majority control over DEPA Commercial.

Another option being explored entails TAIPED acquiring Helleniq Energy’s stake in DEPA Commercial and then listing a percentage of the gas company’s shares on the Athens bourse.

The DEPA Commercial board is actively exploring strategies to diversify the gas company’s portfolio and expand its engagement in renewable energy initiatives. Additionally, DEPA Commercial is planning to extend its trading operations to encompass environmentally friendly gases, such as biomethane.

 

DESFA forecasts gas demand increase of 25% by 2029

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Gas grid operator DESFA expects a sharp rise in domestic gas demand over the next few years, seen rising 25 percent by 2029, according to company data.

Natural gas usage in Greece is projected to rise to 7.3 bcm by 2029, a 25 percent increase compared to 2022, when consumption reached 5.8 bcm. according to DESFA’s data.

DESFA anticipates domestic gas demand will reach 6.7 bcm by 2027 and approximately 15.5 percent over the next two years.

The anticipated rise in domestic gas demand by DESFA is closely linked to the development of new gas-powered electricity stations being established in Greece.

GEK-Terna and Motor Oil Hellas have teamed up for the development of an 877-MW gas-fueled power station in Komotini, northeastern Greece. This project is now under construction and slated for a commercial launch in early 2024.

In addition, power utility PPC, gas company DEPA Commercial and the Copelouzos group have established a partnership for the development of an 840-MW gas-fueled power station in Alexandroupoli, also in the country’s northeast. It is expected to be completed at the end of 2025.

DESFA forwarded its gas-demand data to ACER, Europe’s Agency for the Cooperation of Energy Regulators, for an analysis concerning network fees proposed by the gas operator in consultation staged by RAAEY, the Regulatory Authority for Waste, Energy and Water.

ACER has described the amount of data provided for DESFA’s network fees proposal as insufficient.

The European agency wants RAAEY to clearly set the duration of the new formula for network fees, based on planned investments intended to stabilize gas network flow.

 

Fysiko Aerio net profit for 2022 more than doubles to €32.9m

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Energy retailer Fysiko Aerio EEE, a subsidiary of gas company DEPA Commercial, has posted a net profit of 32.9 million euros for 2022, more-than-double its performance a year earlier, 14.184 million euros, while also significantly increasing its customer base in the retail gas and electricity markets.

Revenues at Fysiko Aerio reached 883.192 million euros in 2022, up from 406.16 million euros in 2021.

This heightened performance resulted in an EBITDA increase to 45.601 million euros for the DEPA Commercial subsidiary, up from 19.865 million euros in 2021.

Fysiko Aerio greatly increased its number of customers in the retail electricity market, reaching 51,520 in 2022.

Managing the major challenges that existed in 2022, while achieving financial and commercial targets was important for Fysiko Aerio EEE, the company noted in its financial statements.

Last year, a period marked by a significant increase in commodity energy prices, resulting in margin compression and liquidity pressure, was the company’s sixth year of operation in Greece’s liberalized natural gas market and fifth year in the electricity market, one of intense competition.

The company’s main objectives for the forthcoming period are to continue its growth in both the natural gas and electricity markets, manage cash liquidity and maintain cost control, it noted.

Fysiko Aerio sees maintenance of its robust market share in the wider Athens area’s natural gas market, investments in central and northern Greece’s markets, as well as greater penetration in the electricity market nationwide as the key drivers behind its aforementioned goals.

 

Gas-sector companies under pressure as a result of low demand

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Companies linked to the natural gas sector, from power producers to gas traders and suppliers, are expected to be seriously impacted by a decline in natural gas demand, down 15.29 percent in the first quarter compared to the equivalent period last year, according to data provided by DESFA, Greece’s gas grid operator.

Gas usage dropped off significantly in the first quarter, down 33.92 percent to 12.39 TWh, from 18.74 TWh in the equivalent period last year.

According to gas market experts, gas usage has been just as flat in the Balkans, not a good prospect for Greece’s gas exports.

This overall decline in gas trading activity, despite signs of some recovery ahead of the summer, is placing gas-linked companies under increasing financial pressure.

The current market conditions are particularly adverse for gas-focused enterprises such as DEPA Commercial, a gas wholesaler, exclusively, as opposed to companies with more diverse portfolios.

Gas consumption in the retail market – covering residential, professional small-scale industrial and industrial usage – had fallen by as much as 50 percent at the beginning of the year, according to market officials.

The mild winter, increased caution by consumers amid the energy crisis, as well as the switch, by many companies, from gas to lower-cost fuels such as diesel, all contributed to this sharp decline.

 

Three CCGTs to vie for two grid spots covering 1.9 GW, Aurora study shows

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Three new combined-cycle gas turbine (CCGT) power plants will be vying for two spots on the electricity grid to cover an available capacity of 1.9 GW, a latest study conducted by Aurora Energy Research and covering the period between 2022 and 2030 has shown.

The Aurora Energy Research study estimated the grid’s available capacity at 2.7 GW but subtracted 820 MW to be offered by the Mytilineos group’s already-completed CCGT in Viotia’s Agios Nikolaos area, slightly northwest of Athens.

The three candidate projects are a CCGT power plant being co-developed by GEK TERNA and Motor Oil in Komotini, northeastern Greece; a power plant being constructed by power utility PPC, gas company DEPA Commercial and the Copelouzos group’s Damco Energy in Alexandroupoli, also in the northeast; as well as PPC’s Ptolemaida V, when it converts from a lignite to natural gas-fueled facility in 2028.

Development of Thermoilektriki Komotinis, the GEK TERNA-Motor Oil CCGT in Komotini, has reached an advanced stage and is considered the most efficient power plant in Greece. Once operational, it will emit 75 percent less CO2 than a lignite plant.

Work on the Alexandroupoli CCGT began last January and is slated for completion in 2025. PPC holds a 51 percent stake, DEPA Commercial has a 29 percent share, and the Copelouzos group’s Damco Energy maintains the remaining 20 percent. This facility will be equipped to also run on hydrogen and mixed fuel.

 

Local firms move with caution ahead of joint EU gas purchases

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Local electricity producers, suppliers and traders are examining final details in preparation for a first round of joint EU natural gas purchases ahead of next winter, through a related platform launched today.

The platform, AggregateEU, a joint purchasing service designed to facilitate common natural gas purchases as a means of keeping prices lower by preventing bidding rivalry between companies based in fellow EU member states, will remain open to applications for a week, until May 2.

In comments to energypress, officials of companies intending to place orders through the platform said they remain cautious and are seeking clarification on various details, including commitments and the extent of potential benefits, or more specifically, price levels that can be achieved through joint orders compared to prices if ordering alone.

In any case, local companies will seek to contribute to the initiative’s common European gas orders.

The Greek energy ministry held a related meeting towards the end of January to discuss the initiative with market players. Energy company officials representing power utility PPC, DEPA Commercial, Mytilineos, Elpedison, Heron and Prometheus Gas, as well as EVIKEN, the Association of Industrial Energy Consumers, took part.

EU authorities plan to stage common gas purchases every two months over the next year.

 

 

Second Greek-Bulgarian grid link set for pre-summer launch

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A second Greek-Bulgarian power grid interconnection, promising to boost transboundary trade and bolster supply security, is scheduled to be completed before summer.

The project, whose Bulgarian section has already been completed, will connect a 200-MVA capacity transmission line running a 151-km distance from Nea Santa in northeastern Greece to Bulgaria’s Maritsa area. The majority of the project’s distance, approximately 121 km, lies within Bulgarian territory.

The interconnection project promises to boost transmission potential at the Greek-Bulgarian border to 1400 MW in a direction from Greece to Bulgaria and 1700 MW from Bulgaria to Greece.

Furthermore, the project will facilitate further RES development in Greece’s north and also enable two Greek power station projects currently being developed to export their production with greater ease.

Construction company GEK-TERNA and energy group Motor Oil have joined forces to develop an 877-MW power station in Komotini, northeastern Greece, while power utility PPC and gas company DEPA Commercial have teamed up for an 840-MW power station in Alexandroupoli, also in the northeast.

DEPA Commercial, Moldova’s Energocom nearing gas deal

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Greek gas company DEPA Commercial is close to establishing a gas supply deal with Moldovan state gas and electricity supplier Energocom, sources have informed, noting the two sides are currently discussing gas quantities and prices for what could be a long-term agreement.

Both Energocom and Moldova, as a whole, are looking for alternative energy sources as the Balkan country, neighboring Ukraine, seeks to end its reliance on Russian fossil fuels.

Kostas Xifaras, chief executive at DEPA Commercial and Energom’s general director Victor Binzari have held talks as part of an official visit to Athens by the leadership of Moldova’s energy ministry.

Greek energy minister Kostas Skrekas, who met with his Moldovan counterpart, Victor Parlikov, during this visit, released an announcement about the prospective supply deal.

DEPA Commercial gas quantities would reach Moldova through an eastern corridor, or network of gas pipeline interconnections linking Greece with Bulgaria (IGB), Bulgaria with Romania, and Romania with Moldova.

DEPA Commercial is also looking to broaden its gas trading activities with other Balkan countries ahead of the arrival of the Alexandroupoli FSRU, a floating LNG terminal now being developed in Greece’s northeast.

DEPA Commercial is a member of the five-member Gastrade consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU.

Gas firms requested to store away 7.5 TWh total this year

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RAE, the Regulatory Authority for Energy, has requested natural gas suppliers to start storing away gas quantities ahead of next winter, based on EU energy-security provisions, energypress sources have informed.

The authority aims to encourage companies to make the most of current favorable terms in international gas markets. Gas price levels are currently far lower than they have been during the energy crisis, so quantities required for storage can be secured at competitive prices.

RAE is believed to have informed gas companies that a total of 7.5 TWh will need to be stored away in 2023. The country’s gas importers, DEPA Commercial, Mytilineos, Elpedison, Heron, power utility PPC and Prometheus Gas will need to take on the responsibility of securing this 7.5 TWh quantity.

An EU regulation set last year requires member states without – or without sufficient – domestic gas storage facilities to store away gas quantities representing 15 percent of the previous five-year average of annual gas usage by November 1 at existing storage facilities maintained by fellow member states.

Bulgaria’s underground Chiren gas storage facility appears to be short of space to accommodate Greek gas orders, meaning Greek importers will need to turn to costlier Italian and French alternatives, along with the FSU on the islet Revythoussa, just off Athens.

Annual gas usage in Greece averaged 61.1 TWh between 2018 and 2022, meaning that a 15 percent proportion works out to 9.2 TWh. RAE deducted 1.7 TWh for alternate purposes, resulting in its 7.5-TWh figure set for this year.

Contrary to last year, companies are not expected to be compensated for any leftover gas quantities. Also, gas companies will need to assume all gas transportation and storage costs, to ultimately be passed on to consumers.

Gas companies have already expressed complaints, calling the storage requirement and its related obligations an unfeasible, high-cost plan. They are seeking revisions.

 

DEPA Commercial plans to adopt PPC remuneration, recruitment model

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Gas company DEPA Commercial plans to adopt a remuneration and recruitment model used by power utility PPC.

But a related draft bill with provisions enabling DEPA Commercial and its affiliated companies to recruit managerial staff without hiring and salary limits must first be approved in Greek Parliament.

The draft bill cites provisions included in legislation from 2019 that paved the way for the recruitment of executives at PPC without a public sector salary cap, which had been imposed as part of Greece’s bailout agreements.

DEPA currently employs 200 managerial staff members of which just 25 are on the payroll. The rest have been employed as sub-contractors for more than ten years and are on low-level incomes as a result of the public sector salary cap.

Meanwhile, the Greek energy market has developed into a highly competitive sector offering much higher salaries in the private sector. This has prompted many DEPA staff members to leave the company for better-paid work at rival privately run firms.

Energy ministry multi-bill at parliamentary committee

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Greek Parliament’s Standing Committee on Production and Trade begins is set to begin discussions today on a multi-bill covering a wide range of energy-sector issues. The committee’s talks are expected to continue during the week, but a date has yet to be set for the multi-bill’s tabling in Parliament for ratification.

Energy-sector issues included in the multi-bill include a formula for filtering out stagnant RES projects as a means of freeing up required grid capacity.

Non-auction tariff levels in 2023 for small-scale wind and solar energy projects of up to 6 MW is another matter included in the energy ministry’s multi-bill, as are power purchase agreement (PPA) rights for RES projects, instead of fixed tariffs, which were trimmed as part of the new deal.

Also included is an article concerning a compensation amount for gas company DEPA Commercial following the cost of its recent decision to cancel LNG orders, not required as a result of lower energy demand this winter.

It also includes revisions exempting businesses and farmers from public service compensation surcharges, included in electricity bills, worth 63 million euros.

In another section, the multi-bill includes terms increasing upper capacity limits to 100 kW on solar energy panels installed for net-metering purposes by churches, charities, NGOs and schools.

Moreover, the revisions include an EU formula to be adopted for the development of offshore wind farms as a pilot project off Alexandroupoli, northeastern Greece.

 

Energy transition fund to cover DEPA Commercial for LNG cancellations

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DEPA Commercial will be compensated through the energy transition fund for its cancellation of two LNG orders made with TotalEnergies a few months ago as part of the country’s overall effort to bolster energy security ahead of this winter period.

A multi-bill submitted to Parliament yesterday by the energy ministry includes a special revision facilitating this compensation payment to DEPA Commercial, which cancelled two LNG orders submitted to TotalEnergies as a result of a sharp reduction in domestic natural gas consumption.

The legislative revision specifies the compensation payment to DEPA Commercial will be made within a two-month period once all supporting documents have been forwarded by the gas company to DAPEEP, the RES market operator.

The two DEPA Commercial orders were planned for delivery between November, 2022 and March, 2023 as cover in the event of a disruption of Russian gas supply to Greece. But the orders ended up proving excessive given the prevailing conditions.

Elpedison set to finalize decision for Thessaloniki CCGT

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Helleniq Energy, formerly ELPE, and Edison are close to finalizing an investment decision for the co-development, by their Elpedison partnership, of an 826-MW CCGT, or gas-fueled power station, in Thessaloniki.

Elpedison’s shareholders are expected to reach an investment decision for the 826-MW CCGT in May, sources have informed. Preliminary work linked to this project has already begun at Helleniq Energy’s refineries.

This prospective CCGT was one of the first new-generation projects to have been licensed by RAE, the Regulatory Authority for Energy, back in 2019. However, despite the time that has since elapsed, the partnership’s shareholders had held back on an investment decision.

The country’s decarbonization plan, and its scope, was one issue that troubled company shareholders,

The Elpedison CCGT is fully licensed in terms of environmental, town planning and other requirements.

Despite its early licensing, other CCGT projects of the same class have jumped ahead and are already being developed in various parts of Greece.

The Mytilineos group has already launched an 826-MW CCGT in Agios Nikolaos, Viotia, northwest of Athens. GEK TERNA and Motor Oil have joined forces for an 877-MW Thermoilektriki Komotinis gas-fueled power station. More recently, power utility PPC, DEPA Commercial and Damco Energy reached an investment decision to develop an 840-MW gas-fueled facility in Alexandroupoli, northeastern Greece.

 

PPC, DEPA, Copelouzos confirm Alexandroupoli power station plan

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Power utility PPC, gas company DEPA Commercial and the Copelouzos group have finalized an investment decision for the development of an 840-MW natural gas-fueled power station in Alexandroupoli, northeastern Greece, a project budgeted at a total of 480 million euros, including supporting projects.

The project was officially approved yesterday at a shareholders’ meeting staged by Ilektroparagogi Alexandroupolis, the consortium formed by the three project partners for this venture.

PPC holds a 51 percent stake in Ilektroparagogi Alexandroupolis, DEPA Commercial has a 29 percent stake and the Copelouzos group is involved with a 20 percent stake.

The three partners behind the 480 million-euro project are believed to have already secured financing from the National Bank of Greece. They plan to begin construction imminently and have completed the Alexandroupoli project by 2025.

The Alexandroupoli power station is expected to feature the lowest variable cost among all natural gas-fueled power stations operating on Greece, meaning it will hold priority status for wholesale market entry.

Its location will enable the facility to be supplied gas directly via the Alexandroupoli FSRU, now being developed by Gastrade, a consortium established by the Copelouzos group for the development and operation of the floating LNG terminal.

The Alexandroupoli power plant will be equipped to also burn hydrogen in a mixture of up to 50 percent.

 

 

DEPA Commercial staging solar farm tenders for its RES entry

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Gas company DEPA Commercial, preparing to also venture into the renewable energy sector with solar farms offering a total capacity of 550 MW, plans to announce tenders for the development and installation of these facilities within the next three months, energypress sources have informed.

DEPA Commercial will look to attract construction companies with experience and knowhow in the RES sector. At this stage, DEPA Commercial officials are considering the number of tenders to be staged.

The total budget for these solar farm projects is expected to reach an estimated 400 million euros. Incentives for swifter project completion will be incorporated into the tenders.

The bulk, or 450 MW, of DEPA Commercial’s 550-MW in solar farms is planned to be developed in the Kozani area, northern Greece. One of these units, expected to offer 400 MW, will be among Greece’s biggest. DEPA Commercial’s remaining 100 MW is planned to be developed in the Viotia region, northwest of Athens.

Helleniq Energy, formerly named ELPE, and PPC Renewables are also developing major-scale solar farms.

DEPA Commercial, whose entry into renewables comes as part of the company’s plan to vertically integrate, intends to follow-up its initial lot of 550-MW in solar farms with an additional 150 MW in RES projects, still awaiting connection terms.

DEPA Commercial finalizing terms for 840-MW in RES units

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State-controlled gas company DEPA Commercial plans to finalize connection terms for over 850 MW in RES projects by the end of this month as part of its plan to vertically integrate through entry into the domain of electricity production, energypress sources have informed.

DEPA Commercial intends to utilize its RES projects to establish power purchase agreements (PPAs) with major-scale consumers, as well as with the group’s retail gas subsidiary Fysiko Aerio, the sources added.

DEPA Commercial’s RES projects whose licensing procedures have reached an advanced stage represent a capacity of over 600 MW.

The gas company had established a business plan to enter electricity production prior to the outbreak of the energy crisis.

DEPA Commercial holds a 49 percent stake in renewable energy company North Solar, with an option to acquire the other 51 percent stake. North Solar’s RES portfolio totals 500 MW. Last summer, North Solar took over New Spes Concept, holding a 232-MW RES portfolio.

In addition, DEPA Commercial plans to finalize, within the next few days, its participation in an 840-MW gas-fueled power station in Alexandroupoli, northeastern Greece, along with power utility PPC and Damco Energy.

 

Natural gas regains place as lower-cost heating option compared to oil

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Natural gas heating has regained its place as a lower-cost heating option to heating oil, courtesy of a gas subsidy support. At current price levels, natural gas heating is estimated to be approximately 20 percent cheaper than heating oil.

Gas suppliers have set their October prices for households at levels of about 0.11 euros per KWh, unchanged from last winter. Subsidies offered by state-controlled DEPA Commercial will reduce this price level to 0.09 euros per KWh. Without any subsidy support, gas prices for household heating would just about double to 0.21 euros per KWh.

Unlike gas suppliers, heating oil suppliers have not been able to set their prices, despite the fact that winter trading for this fuel begins in two days, as a result of wildly fluctuating prices in markets, making it impossible to make projections.

Given the current market conditions, heating oil prices will be set anywhere between 1.40 and 1.50 euros per liter, a level of about 1.45 euros per liter seeming most probable.

These heating oil price levels take into account state subsidies of 0.25 euros per liter. Without the state subsidy support, heating fuel would reach between 1.65 and 1.75 euros per liter.

Elevated heating fuel prices seen, OPEC decision impact awaited

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Heating fuel prices are likely to begin the winter trading season, starting October 15, at an elevated level of between 1.50 and 1.55 euros per liter, market officials have indicated.

Heating fuel subsidies, to be offered to households based on income criteria, stand to lower heating fuel prices to between 1.15 and 1.20 euros per liter.

Pricing predictions for winter remain uncertain as petroleum firm officials are awaiting the impact of a recent OPEC decision to cut back on output before finalizing their calculations. Market developments this week will be instrumental in the level of heating fuel prices to be set by petroleum firms.

If confirmed, heating fuel prices of between 1.50 and 1.55 euros per liter would place struggling households under even greater financial pressure. Fuel-based heating has been seen as a favorable option by many households for this coming winter, given the hefty electricity price increases. However, heating fuel prices of between 1.50 and 1.55 euros per liter would act as a deterrent for many households.

Gas heating, taking into account a gas subsidy of 90 euros per thermal MWh offered by gas company DEPA Commercial, is expected to cost 0.11 or 0.12 euros per KWh in October, sources informed.

At these levels, gas heating remains a lower-cost alternative to fuel-based heating for households not eligible for heating fuel subsidies.