gas

Revised Nabucco pipeline hopes fade, Sofia drops pro-Turkish stance

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A Russian initiative to establish Turkey as a central gas hub, through a revival of a revised version of the old Nabucco project plan, as the transitional government in Bulgaria had attempted to do last spring, appears to have hit an impasse and is unlikely to progress further.

Under the leadership of Bulgarian Prime Minister Nikolai Denkov, who assumed office in June, the new government in Sofia has veered away from the pro-Turkish stance of its predecessor. Instead, it has embraced a more pro-Western orientation in the realm of energy policy.

Also, the European Commission has not shown any interest to financially support the project, dubbed Solidarity Ring.

The ambitious plan had received the backing of certain political circles in Bulgaria keen to exploit Azerbaijan President Ilham Aliyev’s intention to more-than-double his country’s gas exports to the EU from 11 to 27 bcm by 2027.

Bulgaria, Romania, Hungary and Slovakia signed an MoU in Sofia in early May, in the presence of Aliyev, for increased gas supply to central Europe via the Solidarity Ring route.

However, talks in support of this gas pipeline project have ceased, despite its supposed intention to help end Europe’s energy reliance on Russia, EU sources have informed.

Athens, along with other major international energy players, contributed to this impasse. In a letter forwarded to the European Commission in May, Athens noted the project would degrade Greece’s role on the international energy map, upgrade Turkey’s, and serve Russia’s efforts to regain access into the European market, indirectly, by supplying Russian gas as Azeri gas.

This is possible as the Solidarity Ring would bypass Greece and follow a Turkish-Bulgarian-Romanian-Hungarian-Slovakian route into central Europe, meaning Ankara could use Turk Stream, the Russian pipeline running through Turkey, to feed Solidarity Ring.

 

Eurogas: Energy crisis threat not yet over for Europe

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The energy-crisis threat on the continent has not yet passed, despite lower prices, according to Didier Holleaux, chairman of Eurogas and vice-president of France’s Engie, who has warned that the risks will remain for at least the next four winters, and, in doing so, advised authorities, governments and organizations to avoid complacency.

EUROGAS is a European organization involving the participation of a significant number of major energy companies from all over the EU.

Europe managed to overcome the threat of energy shortages last winter, while a sharp fall in natural gas prices over the past six months has provided a welcome respite for consumers.

European contracts at the Dutch TTF hub are currently being established at levels of between 20 and 30 euros per MWh, just a fraction of last August’s peak of 340 euros per MWh, prompted by a drastic cutback in supply of Russian pipeline gas.

Over the past year, EU officials have adopted a series of measures to reduce natural gas prices. Holleaux, in comments to Natural Gas World, warned that last year’s unusually mild winter was the catalyst behind the price reductions.

He acknowledged the European Commission’s gas storage requirements for EU member states also played a role in subduing prices in Europe, adding, however, that current prices remain considerably higher than levels that were regarded as normal prior to the pandemic.

DESFA calls for comprehensive hydrogen market plan

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Gas grid operator DESFA has underlined the need for a clearer strategy concerning the development of a comprehensive hydrogen and renewable gas market with specific policy initiatives, in comments forwarded to the energy ministry as part of a wider effort for revisions to the National Energy and Climate Plan, energypress sources have informed.

DESFA officials, responding to questions on the matter, highlighted the crucial role to be played by hydrogen in the energy transition.

The operator’s line of thinking is not merely limited to the utilization of excess energy resulting from renewables, but stretches out further and includes a whole value chain that would enable the utilization of hydrogen in all its possible applications.

Such a prospect, it was pointed out to energypress, requires a more holistic approach at a political level that would include political actions and measures enabling the development of the hydrogen sector, as opposed to the current approach, focusing on excess electrical energy.

It is worth noting that prospective hydrogen production – given announcements made and the anticipated expansion of the country’s electricity system – will far exceed the needs of the country itself, making necessary infrastructure enabling exports to other markets.

DESFA’s approach, therefore, not only concerns the use of hydrogen in certain sectors as a replacement for natural gas in the context of the decarbonization process.

The gas grid operator is awaiting further clarification from the ministry so that it can draw up its infrastructure development plan taking into account renewable gas and hydrogen as a factor.

 

Power suppliers seen lowering August tariffs by up to 5%

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A large number of electricity retailers are expected to announce reduced tariffs for August, driven by lower wholesale natural gas costs, down to roughly 25 euros per MWh from recent levels of between 32 and 35 euros per MWh at the TTF index.

The tariff drop, expected to reach as much as 5 percent, including discounts, should result in a retail price range of between 0.07 and 0.175 euros per KWh for consumers.

By law, suppliers need to announce their nominal tariffs – not including subsidies – for every forthcoming month by the 20th of each previous month.

It remains unknown if the energy ministry will offer consumers electricity subsidies for August. If it chooses to do so, the aforementioned price levels will drop even lower.

Meanwhile, the government will soon need to make decisions concerning the electricity market’s transition from subsidy support for consumers to the return of indexation clauses, currently suspended.

According to sources, the energy ministry has yet to make final decisions and is discussing details with RAAEY, the Regulatory Authority for Waste, Energy and Water.

Most electricity suppliers have called for a gradual crossover through maintenance of the current framework for an additional two to three months beyond September 30, when emergency measures are scheduled to end.

EastMed pipeline project still viable, Edison CEO says

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ROME (Reuters) – A project to build a 2,000 km pipeline to bring natural gas from East Mediterranean fields to Europe is still alive, the CEO of Italian energy group Edison (EDNn.MI) said on Friday.

Edison CEO Nicola Monti said that the group, which is one of the promoters of the pipeline, was actively talking with Cyprus and Israel about the project.

Last month, the energy minister of Cyprus told Reuters the country was proposing a shorter pipeline to bring gas from Israel’s East Mediterranean fields to the island where the gas could be partially liquefied to be transported to the European markets.

The shorter connection could be seen as an alternative to the more ambitious EastMed pipeline.

“A link between Israel and Cyprus can be a first portion of the (EastMed) pipeline we are promoting. Because from Cyprus we could then connect with Crete and Greece,” Monti said, speaking with journalists on the sidelines of a meeting of energy industrial lobby Confindustria Energia.

He said he believed that the total costs of building the EastMed pipeline would be lower than the investment needed to build a shorter Israel-Cyprus connection, a liquefaction plant and the expenses of shipping the gas to European markets.

Reporting by Francesca Landini Editing by Keith Weir

Helleniq Energy moves on to next stage for licenses in west

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Helleniq Energy, formerly named Hellenic Petroleum (ELPE), has successfully completed a first stage of seismic surveys at two offshore licenses, Ionio, in the Ionian Sea, and Block 10 in the Gulf of Kyparissia, west of Peloponnese, and is following up with a second round of exploration activity, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, has announced.

Helleniq Energy, possessing full ownership of both licenses, has just officially launched its second round of surveys at Ionio and Block 10.

The second-round survey work at Ionio entails collecting and processing 3D seismic data and conducting geological work and environmental studies for an area covering a total of 900 km2. At Block 10, Helleniq Energy plans to collect and process 3D data and also conduct petrophysical and geophysical analyses over 400 km2.

EDEYEP chief executive officer Aristofanis Stefatos commented: “We welcome Helleniq Energy’s decision to formally enter the next phase of exploration in the Ionian Sea and Block 10. We have already built a very good cooperation, which we are confident will continue during phase two. We are particularly pleased that the company has responded with exceptional speed to the Greek government’s request for a swifter exploration schedule concerning the natural gas fields, and we look forward to the rapid completion of phase two, with the same level of dedication for the protection of the environment and marine life. With our investors, we share the belief that the exploitation of our natural resources will boost the country’s economic growth and enhance its energy security, and we are working together to achieve the energy transition to a strengthened and sustainable energy system.”

Indexation clause set to remain suspended for 2 extra months

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The energy ministry appears to be receptive to a request made by a number of electricity suppliers for a short extension of emergency measures introduced to the retail electricity market during the early stages of the energy crisis.

Suppliers have called for an extension of emergency measures as an adjustment period for a return to normalized tariffs.

The ministry, energypress sources have informed, seems set to keep indexation clauses in electricity bills suspended for a further two months. This means they would be reactivated on December 1 rather than October 1, as was originally planned.

On the contrary, the ministry does not look like it will extend emergency measures that had been introduced to the wholesale electricity market, unless the energy crisis flares up again and leads to skyrocketing natural gas prices, as was the case for several months last year.

If electricity prices, greatly influenced by natural gas prices, remain steady until the end of September, then a current price cap imposed on the wholesale electricity market’s day-ahead and intraday markets will be terminated as of October 1.

46 leading speakers at 1st Hydrogen & Green Gases Forum in Athens, June 23

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The 1st Hydrogen & Green Gases Forum, an energypress event constituting Greece’s only forum comprehensively covering hydrogen and green gas issues, is scheduled to take place on June 23 at the Wyndham Grand Athens hotel. 

The forum, whose agenda includes 46 leading speakers and coordinators, will be launched by the caretaker government’s energy minister Pantelis Kapros, who served as president of a National Committee on hydrogen.   

Speakers will include Alexandra Sdoukou, Secretary General of the Ministry of Environment; Yannis Xifaras, Secretary General of the Ministry of Transport; Maria Spyraki and Nikos Papandreou, both Members of the European Parliament; George Hatziimarkakis, CEO of Hydrogen Europe; Maria Georgiadou, Senior Expert European Commission DG Research & Innovation; Melissa Verykios, president at Clean Hydrogen Partnership; Andreas Poullikkas, President of the Cyprus Energy Regulatory Authority; Konstantinos Papaloukas, Coordinator of the National Hydrogen Committee of the Ministry of Environment and Natural Resources; Nikolaos Lyberopoulos, Project Officer at Clean Hydrogen Partnership; Sotiris Karellas, Professor at the National Technical University of Athens (NTUA) and the energy ministry’s technical adviser on biomethane; Dimitris Lyridis, Professor of Naval Engineering, NTUA – Director of the Marine Transport Laboratory; Antonis Metaxas, Assoc. Professor of EU Law, University of Athens; Manos Stamatakis, Researcher at the Institute of Geoenergy; Alexandros Yfantis, President of the Hellenic Association of Biogas Producers; Nikos Davos, from the Cluster of Bioeconomy and Environment of Western Macedonia (CLuBE); and Nektaria Karakatsani, energy ministry adviser.

The business community is being represented, amongst others, by: Maria-Rita Gali, CEO of DESFA; Konstantinos Xifaras, CEO of DEPA; Dimitris Triantafylopoulos, CEO of Hellenic Hydrogen; Vassilis Grigoriou, President and CEO of Advent Technologies; Vassilis Galanis, from CENERGY HOLDINGS; Alexandros Soumelidis, Director of New Generation Activities, PPC; Ioannis Stefanou, Partner, Head of Energy Sector, Grant Thornton Greece; Konstantinos Levogiannis, Head of EU Affairs of NEL Hydrogen; Konstantinos Hatzifotis, Head of European Affairs of Motor-Oil Group; Kyriaki Karakitsou from DEPA Commercial; Karolos Antonios Vidalis, Hydrogen Director at Centrica British Gas Zero UK; Ariadni Psimara from ATTICA GROUP; and Alexandros Lagakos, General Manager of Blue Grid Gas & Power.

Persons interested in attending the event may register through the forum website (https://www.hydrogenforum.gr/) until today. Places are now limited.  However, all proceedings will be broadcast live, in Greek and English, through energypress.gr and social media.

 

 

46 leading speakers at 1st Hydrogen & Green Gases Forum in Athens, June 23

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A total of 46 leading speakers will participate at the upcoming 1st Hydrogen & Green Gases Forum, organized by energypress, on June 23 at the Wyndham Grand Athens hotel.

The event will be launched by the caretaker government’s energy minister Pantelis Kapros.

Speakers will include Alexandra Sdoukou, Secretary General of the Ministry of Environment; Yannis Xifaras, Secretary General of the Ministry of Transport; Maria Spyraki and Nikos Papandreou, both Members of the European Parliament; George Hatziimarkakis, CEO of Hydrogen Europe; Maria Georgiadou, Senior Expert European Commission DG Research & Innovation; Andreas Poullikkas, President of the Cyprus Energy Regulatory Authority; Konstantinos Papaloukas, Coordinator of the National Hydrogen Committee of the Ministry of Environment and Natural Resources; Nikolaos Lyberopoulos, Project Officer στο Clean Hydrogen Partnership; Sotiris Karellas, Professor at the National Technical University of Athens (NTUA) and the energy ministry’s technical adviser on biomethane; Dimitris Lyridis, Professor of Naval Engineering, NTUA – Director of the Marine Transport Laboratory; Antonis Metaxas, Assoc. Professor of EU Law, University of Athens; Manos Stamatakis, Researcher at the Institute of Geoenergy; Alexandros Yfantis, President of the Hellenic Association of Biogas Producers; Nikos Davos, from the Cluster of Bioeconomy and Environment of Western Macedonia (CLuBE); and Nektaria Karakatsani, energy ministry adviser.

The business community is being represented, amongst others, by: Maria-Rita Gali, CEO of DESFA; Konstantinos Xifaras, CEO of DEPA; Dimitris Triantafylopoulos, CEO of Hellenic Hydrogen; Vassilis Grigoriou, President and CEO of Advent Technologies; Vassilis Galanis, from CENERGY HOLDINGS; Alexandros Soumelidis, Director of New Generation Activities, PPC; Ioannis Stefanou, Partner, Head of Energy Sector, Grant Thornton Greece; Konstantinos Levogiannis, Head of EU Affairs of NEL Hydrogen; Konstantinos Hatzifotis, Head of European Affairs of Motor-Oil Group; Kyriaki Karakitsou from DEPA Commercial; Karolos Antonios Vidalis, Hydrogen Director at Centrica British Gas Zero UK; Ariadni Psimara from ATTICA GROUP; and Alexandros Lagakos, General Manager of Blue Grid Gas & Power.

Persons interested in attending the event may register through the forum website (https://www.hydrogenforum.gr/) until Monday.

Places are now limited. However, all proceedings will be broadcast live, in Greek and English, through energypress.gr and social media.

 

Italgas’ Greek EBITDA goal for ’23, €106m, highlights local importance

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Italian energy group Italgas’ 2023 EBITDA target of 106 million euros for its Greek portfolio, representing 9 percent of the group’s overall EBITDA objective this year, highlights the strategic importance of the group’s business plan in Greece.

Italgas’ CEO, Paolo Gallo, highlighted this importance during his presentation yesterday of the Italian company’s strategic plan for 2023 to 2029 to investors and analysts in London.

According to Italgas’ seven-year strategic plan, the Greek portfolio’s EBITDA will contract slightly to 8 percent of the group’s overall EBITDA in 2029.

Italgas plans to greatly increase the group’s activities in the Greek market and subsequently boost their value from 700 million euros in 2022 to 1.2 billion euros by 2029, at an annual growth rate of 7.3 percent.

A key objective for the group in the Greek market is to expand natural gas distribution to new areas through the addition of 42 municipalities to the network, either through pipeline distribution or LNG stations.

Italgas has acquired DEPA Infrastructure and its three gas distribution subsidiaries, EDA Attiki, EDA THESS and DEDA.

The Italian group is currently working on a plan to merge its three Greek gas distribution subsidiaries, a development expected to offer significant benefits in terms of efficiency, effectiveness and transfer of know-how. According to Italgas officials, this procedure is expected to be completed by the end of the year.

 

Temporary solution for DESFA tariffs, new WACC level still not set

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Gas grid operator DESFA’s WACC figure for the next regulatory period, covering 2024 to 2027, remains undetermined, while, furthermore, a final decision by the operator on its tariffs for this four-year period will be subject to two outstanding issues, DESFA’s operating expenses and the socialization cost-coverage percentage at its Revythoussa LNG terminal.

RAAEY, the Regulatory Authority for Waste, Energy and Water, has requested additional information from DESFA concerning its operating expenses for the next regulatory period in order to calculate the operator’s allowed revenue.

As for the socialization rate at DESFA’s Revythoussa LNG terminal, RAAEY has proposed keeping it unchanged at 50 percent for the 2024-2027 regulatory period.

Based on EU terms, DESFA’s tariffs ought to have been set by June 5, ahead of international tenders, on July 3, to offer capacities at three gas grid interconnections.

Consequently, in order to meet this deadline, DESFA has set provisional tariffs based on the WACC level it has proposed, 9.14 percent.

These tariffs have been uploaded onto the platform for national grid users so that they can have a rough idea on network usage fees when preparing bids for capacity reservations.

Energy minister to open 1st Hydrogen & Green Gases Forum, June 23

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The caretaker government’s energy minister Pantelis Kapros will launch the 1st Hydrogen & Green Gases Forum, organized by energypress, on June 23 at the Wyndham Grand Athens hotel.

Preparations for the event have entered the final stage. A heightened level of interest expressed by the business and academic community, as well as industry players in Greece and Europe, is already establishing the forum as a benchmark for the industry.

As is the case with all other Forums organized by energypress, the Hydrogen & Green Gases Forum will essentially serve as a working conference rather than a “celebratory” event. This means that a group of politicians from Greece and abroad, sector officials, scientists, academics, as well as representatives of institutions and businesses will seek to delve deep into all issues arising in connection with the present and future of Hydrogen and Green Gases, a crucial sector.

Among the speakers are: Alexandra Sdoukou, Secretary General of the Ministry of Environment; Yannis Xifaras, Secretary General of the Ministry of Transport; Nikos Papandreou, Member of the European Parliament; George Hatziimarkakis, CEO of Hydrogen Europe; Maria Georgiadou, Senior Expert European Commission DG Research & Innovation; George Kasapidis, Regional Governor of Western Macedonia; Melissa Verykios, President of the Clean Hydrogen Partnership; Andreas Poullikkas, President of the Cyprus Energy Regulatory Authority; Konstantinos Papaloukas, Coordinator of the National Hydrogen Committee of the Ministry of Environment and Natural Resources; Dimitris Lyridis, Professor of Naval Engineering, NTUA – Director of the Marine Transport Laboratory; Manos Stamatakis, Researcher at the Institute of Geoenergy; Alexandros Yfantis, President of the Hellenic Association of Biogas Producers; Nikos Davos, from the Cluster of Bioeconomy and Environment of Western Macedonia (CLuBE).

The business community is being represented, amongst others, by: Maria-Rita Gali, CEO of DESFA; Konstantinos Xifaras, CEO of DEPA; Dimitris Triantafylopoulos, CEO of Hellenic Hydrogen; Vassilis Grigoriou, President and CEO of Advent Technologies; Vassilis Galanis, from CENERGY HOLDINGS; Alexandros Soumelidis, Director of New Generation Activities, PPC; Ioannis Stefanou, Partner, Head of Energy Sector, Grant Thornton Greece; Konstantinos Levogiannis, Head of EU Affairs of NEL Hydrogen; Konstantinos Hatzifotis, Head of European Affairs of Motor-Oil Group; Kyriaki Karakitsou from DEPA Commercial; Ariadni Psimara from ATTICA GROUP; and Alexandros Lagakos, General Manager of Blue Grid Gas & Power.

Forum’s main themes:

– European policies for the promotion of Hydrogen and Renewable Gases

– Public and private financial instruments to support hydrogen, biomethane and renewable gas research and investment

– Greece: National Strategy, opportunities, prospects and obstacles

– Hydrogen and biomethane readiness – networks

– Hydropower – Transport

– Challenges in Shipping for Decarbonisation and the Green Transition – The Role of Hydrogen and Renewable Gases

– Hydrogen as a pathway for further penetration of RES overcoming interconnection adequacy problems

– Applications in Industry – Key investment projects in Greece (Presentations)

For further information and the event’s sponsorship program contact: Maria Delli, 2108217446, mariadelli@energypress.gr

 

 

 

RAAEY, DESFA still far apart on 2024-2027 WACC agreement

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RAAEY, the Regulatory Authority for Waste, Energy and Water, and gas grid operator DESFA still need to bridge a wide gap for an agreement on the latter’s WACC figure for the next four-year regulatory period covering 2024 to 2027, energypress sources have informed.

As a result, a final decision by the operator on its gas network usage fees for the next regulatory period, which had been scheduled to be set by June 5, remains pending.

This deadline results from a European regulation on interconnection auctions. The delay will impact the procedure for capacity reservations by Greek and foreign players concerning the Greek transmission system’s gas entry and exit points.

Though the delay in determining tariffs is definitely an unfavorable development, the issue could be resolved by staging capacity reservation auctions with existing gas grid network usage levels, sources noted.

RAAEY has determined that DESFA’s proposed WACC figure for 2024 to 2027, at 9.14 percent, is unjustifiably high and above the corresponding figures of all other market operators. RAAEY has proposed a WACC figure of just over 7.44 percent, DESFA’s level at the end of 2022.

 

Israeli government recognizes Energean Katlan gas discovery

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The Israeli government has officially recognized Energean plc’s discovery of a natural gas deposit at its Block 12 Katlan (Olympus) license, located between the company’s Karish and Tanin licenses.

Israel’s minister of national infrastructures, energy and water resources Israel Katz awarded Energean CEO Mathios Rigas his approval of the Katlan discovery, estimated to contain 68 bcm.

The Israeli government last recognized a natural gas deposit in 2015.

From a legal perspective, the ministry’s approval enables Energean to lodge a development plan application, which, once endorsed, will pave the way for the development of the deposit. In a few years’ time, it is expected to offer additional natural gas quantities for the Israeli market and, possibly, exports.

Energean hopes its Katlan/Olympus deposit will be developed to deliver natural gas ahead of Tanin as the new discovery can be easily connected to the neighboring Karish deposit, already producing natural gas.

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Brussels backs TAIPED tender relaunch for South Kavala UGS

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The European Commission has endorsed Greek privatization fund TAIPED’s intention to relaunch a failed tender for the development of “South Kavala”, an almost depleted natural gas field in the Aegean Sea’s north, as an underground natural gas storage facility (UGS) that would, under the new plan, also be equipped to store hydrogen.

Brussels’ decision on the South Kavala UGS has been included in a just-published European Commission post-program surveillance report covering the state of the Greek economy and its developments.

TAIPED declared that the South Kavala UGS had ended without a result in March. At the time, the privatization fund also noted it would assess international gas market conditions, taking into account circumstances created by Russia’s invasion of Ukraine, as well as the European Commission’s REPowerEU decisions, to decide on whether it would relaunch the South Kavala UGS tender in the short term.

As previously reported by energypress, TAIPED has submitted an application to Brussels to have the UGS included on the European Commission’s project-supporting PCI list, as a facility also equipped to store hydrogen.

Energean plc trading statement & operational update

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London, 18 May 2023 – Energean plc has announced an update on recent operations and the Group’s trading performance in the 3-months to 31 March 2023.

Highlights – Financial and Corporate

  • Revenues for the period were $288.8 million, a 69% increase versus Q1 2022 ($170.7 million)
  • EBITDAX for the period was $161.2 million, a 81% increase versus Q1 2022 ($89.6 million)
  • Group cash as of 31 March 2023 was $379.6 million (including restricted amounts of $11.5 million) and total liquidity was $943.5 million
  • Q1 2023 dividend of 30 US$ cents/share declared today, scheduled to be paid on 30 June 2023
  • Emissions intensity[1] for the period was 11.1 kgCO2e/boe, a 36% reduction versus Q1 2022 (17.2 kgCO2e/boe)
    • Emissions intensity1 in the four-months to 30 April 2023 was 10.1 kgCO2e/boe

Highlights – Operational

  • Production for the period was 94.4 kboed, a 161% increase versus Q1 2022 (36.1 kboed)
    • Production in the four-months to 30 April 2023 was 100.0 kboed (82% gas)
  • Commercial period under the gas sales agreements in Israel commenced for gas buyers on or before 1 April 2023[2], with production continuing to ramp up
  • Three hydrocarbon liquid cargoes cumulating in approximately 1 million bbls from Karish sold to Vitol year to date
  • The second gas export riser was successfully installed at Karish in March 2023; followed by key Karish North infrastructure in March and April 2023
  • Olympus development concept chosen to align with strategy to optimise free cash flows and shareholder value
    • Tie-back to Energean Power FPSO, with Olympus prioritised over Tanin
    • Production plateau maintained by monetising newly discovered resources that do not incur seller royalties nor carry export restrictions
    • Focus maintained on capital discipline: Lower cost development versus Tanin driving lower capital expenditure for the next phase of tie-backs to the Energean Power FPSO; plus avoiding significant capital expenditure to add capacity through FPSO expansion projects or a new FPSO/FPU
    • Production expected to underpin existing gas sales agreements plus target international markets that can be accessed through existing and planned third party infrastructure

Outlook

  • Full year production guidance revised to 125 – 140 kboed (from 131 – 158 kboed) due primarily to:
    • Revised gas sales forecast in Israel with full year quantities now expected to be 4.5 – 5.0 bcm (versus 4.5 – 5.5 bcm) due to the ramp up profile of buyer offtake and ongoing optimisation of the operations of the Energean Power FPSO
    • Higher-than-expected decline from NEA#6 in Egypt following the positive initial flow rates. There is no expected read-across to the PY#1 and NI#1 wells; extended flow testing is required at NEA#5 to confirm no read-across for this well. These three remaining NEA/NI wells are expected onstream over the course of 2023; NEA#5 drilling was completed in May 2023 with results in line with pre-drill geological expectations.
  • Karish growth projects on track for completion by end-2023
  • On track to deliver near-term targets of 200 kboed, $2.5 billion revenues, $1.75 billion EBITDAX and leverage < 1.5x in 2H 2024, and pay dividends in line with previously communicated policy
  • Final investment decision on the Olympus Area expected in late 2023
  • Orion 1X spud expected towards the end of the year

Mathios Rigas, Chief Executive Officer of Energean, commented:

“We are ramping up production from the Karish field and have seen four months of solid gas and liquids production in Israel, whilst optimising the operations of the Energean Power FPSO. Our Israeli gas contracts have moved to commercial status and our buyers are increasing nominations. This year, Energean expects to supply a significant proportion of Israel’s gas demand.

“This is why we are moving quickly to develop our newly discovered Olympus Area resource, as efficiently as possible. As there is limited incremental capex, the initial development concept is in line with our stated commitment to remain capital disciplined. With no seller royalty payments or export restrictions, this strategy will create sustainable value for all our stakeholders and allow us to maintain and grow our stated sector-leading dividend policy.

“We continue to focus on our Net Zero stated path through continuous reductions in our carbon intensity. We are and will remain a responsible hydrocarbon producer. We are committed to being the best version of Energean we can be: provide a secure and reliable energy supply, support our communities and underwrite the transition.”

 

[1] Scope 1 and 2 emissions

[2] With the exception of one GSPA, whose commercial period begins in November

RAAEY, DESFA need to bridge gap for four-year WACC figure

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has determined that gas grid operator DESFA’s intended WACC figure for 2024 to 2027, planned to be set at 9.14 percent, is unjustifiably high and above the corresponding figures of all other operators.

At this stage, RAAEY and DESFA have work to do to converge for an agreement on the operator’s WACC figure concerning the aforementioned four-year period. Even so, both sides are confident an agreement will be achieved.

RAAEY is expected to deliver decisions on DESFA’s WACC level, allowed revenue and tariffs for 2024 to 2027 within the first ten days of June.

DESFA has set itself an allowed revenue of 201 million euros for 2024, with slight rises over the ensuing three years, to 218 million euros in 2025, 233 million euros in 2026, and 247 million euros in 2027.

Meanwhile, a ministerial decision paving the way for the country’s three gas distribution network operators to replace conventional gas meters with smart meters is believed to be just days away.

Athens troubled by Bulgaria’s Solidarity Ring project

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Athens intends to soon raise concerns, to the European Commission, over Bulgaria’s Solidarity Ring project, planned to transport natural gas of ambiguous origins to central Europe through a route bypassing Greece, crossing Turkey and benefiting, it seems, Russia.

Greek government officials are now preparing a letter for the European Commission in which a series of crucial questions regarding the Bulgarian project will be raised, including who stands to be its true beneficiary and whether the use of European funds for the revival of a version of the failed Nabucco pipeline would be appropriate.

The Nabucco pipeline had been planned to bypass Greece for the transportation of Caspian gas along a route running from Turkey to Austria, via Bulgaria. However, the TAP project, which connects with the Trans Anatolian Pipeline at the Greek-Turkish border, crosses northern Greece, Albania and the Adriatic Sea to southern Italy, prevailed in 2013.

Besides sidelining Greece, Bulgaria’s Solidarity Ring project would also exclude Greek gas grid operator DESFA, gas company DEPA, a partner in the Greek-Bulgarian IGB gas pipeline, as well as the TAP project’s shareholders.

The Solidarity Ring project, local authorities suspect, could be used to export Russian gas, disguised as Azerbaijani gas, to the EU via Bulgaria and Turkey.

 

Europe favorably placed ahead of next winter’s gas storage refill

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Favorable conditions last winter have placed Europe in an advantageous position of being able to fill, to full capacity, its natural gas storage facilities even if Russian supply is completely cut off.

Europe needs to store away approximately 35 billion cubic meters of natural gas between now and the end of October, well below the average figure of roughly 55 bcm over the past decade, in order to fill its energy storage facilities at 90 percent of capacity, the European goal set for next winter.

A year ago, Europe needed to purchase approximately 70 bcm of natural gas to fill its storage facilities. This was one of the factors that pushed prices up to all-time highs.

Fortune went Europe’s way last winter as temperatures remained mostly mild, significantly subduing energy usage, while China’s zero-Covid policy enabled the continent to import substantial LNG quantities which, otherwise, would not have been available.

As a result of these factors, Europe’s gas storage facilities were left 55 percent full by the end of last winter, well above the previous decade’s average of 33 percent.

Despite the favorable news for Europe, the market remains susceptible to dangers as a result of increased natural gas usage in the industrial sector and revitalized demand in Asia, factors that have led analysts to forecast a wholesale gas price rebound that could exceed 100 euros per MWh.

Also, the milder weather conditions could have negative impact in the long run. Low rainfall and snowfall in many parts of Europe could lead to a hot and dry summer, increasing energy demand for cooling purposes, and prices. This could make Europe’s energy-storage refilling effort slightly more challenging.

DESFA assessing action needed for hydrogen-ready network

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Gas grid operator DESFA is conducting a technical study examining interventions that will be needed to the country’s grid so that it may facilitate hydrogen’s entry into the energy mix. The operator aims to have completed and submitted this study to RAAEY, the Regulatory Authority for Waste, Energy and Water, by the end of the year, energypress sources informed.

The operator’s study is planned to include the cost of all actions needed for a hydrogen-ready grid, a substantiated proposal specifying an optimal hydrogen proportion for the country’s gas network, as well as feasibility studies on the connection, to the network, of individual hydrogen-related pilot projects.

These studies, DESFA anticipates, will also get authorities working on a hydrogen-related regulatory framework, currently non-existent.

A committee established to prepare a national strategy for hydrogen completed its task and delivered its findings to the energy ministry in 2021.

However, revisions made to the National Energy and Climate Plan, resulting in more ambitious targets, may prompt the energy ministry to seek an updated national strategy on hydrogen.

DESFA has already prepared a study assessing the degree of hydrogen mixing with natural gas over two stages, as proportions of 5 and 10 percent, and what these proportions would entail in terms of investments needed, Panagiotis Panousos, Energy Transition Manager at DESFA, told the recent RENPOWER conference.

 

Government’s energy crisis policy highly effective, PM adviser notes

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The ongoing release of data concerning 2022 continues to confirm the government’s choices in addressing the energy crisis have, on the whole, been highly effective, Nikos Tsafos, the Greek prime minister’s special adviser for energy, has noted in an article contributed to energypress.

There have been many aspects to the energy crisis but the biggest problem for Greece last year was the sharp rise in natural gas prices, the energy expert pointed out. Though the country spent annual amounts of approximately one billion euros for natural gas imports between 2010 and 2019, such spending skyrocketed to 7.4 billion euros in 2022, or 3.4 percent of the country’s GDP, he stressed.

The trade deficit widened considerably, by 38 percent last year, as a result of the rise in natural gas prices, Tsafos noted.

The government faced the challenge, in 2022, of needing to find an additional sum of over six billion euros for natural gas imports required to keep the country rolling, the energy expert pointed out.

The government achieved three goals, the first being to protect the country’s citizens and economy from high-priced energy imports and avoid a derailment of fiscal targets set, the official noted.

Secondly, the administration managed to partially absorb energy price increases without impacting incentive for reasonable energy savings, and thirdly, through its policies, ensured supply security, Tsafos pointed out.

A sum of approximately 10 billion euros made available by the government in 2022 for consumer support, in the form of energy subsidies, was a fundamental part of the administration’s energy crisis policy, the energy adviser noted, adding that, as a result, Greece achieved a higher growth rate than the rest of Europe.

This sum was not taken from the state budget but, instead, raised through windfall taxes imposed in the energy market, Tsafos noted.

As a result, a modest budget surplus, before interest, was achieved in 2022, while the country’s public debt decreased by 23 percentage points, he highlighted.

Tsafos also highlighted society’s positive response to the need for energy savings, noting electricity usage in Greece fell by 6.7 percent in 2022, more than double the European average of 3.1 percent. Natural gas usage in Greece fell by 19 percent last year, well over the European average of 13 percent, he added.

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.

 

 

Energy exchange, DESFA considering broader platform, simpler trading

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The Greek energy exchange and gas grid operator DESFA are looking to expand the exchange’s number of trading participants by introducing registration process revisions that would make it easier to conduct transactions, energypress sources have been informed.

At present, the exchange hosts a total of 20 participants, while talks are in progress for the addition of a further nine companies, mostly from abroad.

DESFA and Greek energy exchange officials are seeking to determine whether it is possible for balancing market responsibilities to be covered by third parties rather than participating traders, themselves, a challenging task.

At the same time, the energy exchange is working on the prospect of introducing new products to the trading floor as a longer-term plan. Any new products that appear on the exchange’s trading platform would have to correspond to real market needs as, otherwise, they would not produce desired results and potentially affect the market as a whole.

For the time being, energy exchange officials have begun exploratory talks with market participants to accurately gauge their level of interest for new products.

Energy exchange officials are looking at beginning with shorter-term products, such as D+2, D+3, week-ahead, balance-of-month, and month-ahead products, before progressively moving on to longer-term products.

 

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.

EDA Attikis and EDA THESS’ online workshop with the Supply Companies

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In the context of fostering effective cooperation, a constructive working meeting was held between the Distribution Network Operators, EDA ATTIKIS and EDA THESS, and the Supply Companies (Distribution Users) operating on the natural gas networks of Attica, Thessaloniki and Thessaly, with the aim of optimizing the services provided to end consumers and fully complying with the regulatory framework.

The agenda of the meeting included, among others, issues related to market development, increasing the penetration rate, consumer service, as well as the development of new networks in the License Areas of the Distribution Network  Operators.

The participating Supply Companies put forward their proposals and expressed their optimism for the joint and timely management of the issues addressed, prioritizing the strengthening and upgrading of the interoperability of the Operators’ online electronic information exchange tools (portals), always in accordance with the current regulatory framework and with a view to the equal treatment of Supply Companies and End Consumers.

On the part of EDA ATTIKIS and EDA THESS – which hold 99.5% of the total gas meters nationwide – special emphasis was placed on the actions to be taken in order to regain trust in natural gas, as it is the cleanest, most cost-effective, efficient and environmentally friendly fuel.

In addition, the Operators informed the attendants that meetings will soon be held with the Technical Entities and Municipal Authorities to inform them about the implementation of the 2023 Development Programs in the License areas. The Operators are committed to providing access to natural gas to all consumers, by ensuring connection to the existing gas network – also in Attica – within 35 days, with the aim of increasing penetration.

Concluding the workshop, Mr. Leonidas Bakouras pointed out that, as Distribution Network Operators, the recognition of our networks’ potential to channel green energy to thousands of consumers, offering an easy and cost-effective decarbonisation pathway, lays solid foundations for a sustainable future, creating added value for the benefit of all stakeholders.

 

Energypress holds Power & Gas Forum: See agenda, speakers

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As the energy crisis evolves into the new normal and power & gas markets are seeking new rules, Energypress organizes for a fourth year the annual Power & Gas Forum on March 22-23 in Wyndham Grand Athens Hotel.
The conference will take place with physical presence and can also be viewed online both in Greek and English.
You can see the conference’s agenda and the speakers list here.

https://powergassupplyforum.gr/

 

Live coverage of energypress Power & Gas Forum here

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The Power & Gas Forum, organized by energypress for a fourth year and taking place March 22 and 23, 2023 at the Wyndham Grand Athens hotel, offers a rich agenda over its two days. The entire range of energy-sector topics will be covered with participation from over 70 prominent speakers. Simultaneous interpretation from Greek to English will be offered.

Watch the conference through this link:

“https://services.livemedia.gr/embed/live/7992?start=0”

 

 

 

Short-term EU action curbing crisis effects sought by Greece

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European Commission proposals for electricity market reforms as well as gas supply security measures ahead of next winter will be the focus of attention at a European Council summit of EU leaders later this week, planned for March 23 and 24, as well as at an upcoming EU Energy Council, scheduled for March 28.

According to energypress sources, Greek officials are approaching these sessions with a mostly favorable view of the European Commission’s proposed framework of measures, while pointing out, however, that they do not offer solutions but rather set defense strategies in the event of further crises.

Given this stance, Greek officials, at both upcoming meetings, intend to support the need for short-term measures aimed at curbing the effects of the energy crisis and contend that the European proposals are too timid.

As for the segment of upcoming talks to focus on European electricity market reforms, Greek officials will promote the establishment of a European fund, which they believe is necessary to provide state guarantees for CfDs and other European Commission proposals such as hedging.

The absence of such support would limit the benefits of measures proposed by Brussels to EU member states possessing sufficient fiscal leeway and marginalize all other member states, Greek officials believe.

The possibility of extending, into next winter, a voluntary objective for reducing gas demand will be among the topics to be discussed at next week’s EU Energy Council. The European Commission has proposed extending this voluntary goal to March, 2024. It was originally set to run from August 1, 2022 to March 31, 2023.

April electricity tariffs to fall by at least 2 cents per KWh

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Electricity supplier tariffs for April, due, by law, to be announced by midnight, will be at least 2 cents per KWh below levels set for March, while a number of independent suppliers may even offer greater reductions of as much as 5 cents per KWh, sources have informed.

Recently introduced law requires the country’s electricity suppliers to announce their retail tariffs for each forthcoming month by the 20th of every preceding month.

The anticipated tariff reductions for April will not result in lower energy costs for users, but the government, which has been providing subsidies – through the Energy Transition Fund – during the energy crisis to maintain residential tariffs at between 15 and 16 cents per KWh, will be able to decrease its outlay on subsidies while keeping tariffs at the desired level.

Lower wholesale electricity prices and a current de-escalation of natural gas prices in international markets are the key reasons behind the anticipated reduction in electricity tariffs.

Intraday market electricity prices during the first half of March were approximately 20 percent less than a month earlier and nearly 55 percent below prices recorded in December.

Suppliers spared of €10/MWh cost on electricity producers

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Electricity suppliers will no longer be factoring into their tariffs a special surcharge of 10 euros per MWh on natural gas used for generation purposes following a recent revision to this extraordinary measure.

The country’s power retailers are currently working on their tariffs for April, due to be announced on Monday, based on a recent law requiring suppliers to announce price levels for every forthcoming month by the 20th of each preceding month.

Though the aforementioned flat-rate surcharge no longer applies, electricity producers have not been entirely spared of special contributions. An amendment that came into effect this month now requires electricity producers to contribute to the state a monthly surcharge that is equivalent to 5 percent of the TTF natural gas index.

The now-terminated special surcharge of 10 euros per MWh on natural gas used by producers for generation purposes is estimated to have increased retail electricity bills by 18 to 20 euros per MWh.

Though the eventual cost – for consumers – of the new TTF-based surcharge remains unknown, it will definitely be lower than costs resulting from the flat-rate formula. Lower TTF levels will mean lower related costs for electricity producers, which, by extension, will enable suppliers to offer reduced retail prices.

Suppliers are expected to announce reduced tariffs for April on the 20th of this month as wholesale electricity prices and the TTF index have been on  downward trajectories.

Independent suppliers are forecast to offer tariffs of around 0.20 euros per kWh, a reduction of 0.02 to 0.03 euros per kWh compared to levels for March. Power utility PPC may lower its prices below 0.20 euros per kWh, according to unconfirmed reports.

These lower prices will essentially not offer reduced prices for consumers, but the government’s subsidy support policy, keeping retail power prices at levels of between 14 to 16 cents per KWh, will cost the administration less.