gas exports

DESFA posts significant revenue, profit gains for 2022

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Gas grid operator DESFA has posted impressive financial results for 2022, including a 37.6 percent year-on-year revenue increase to 278.3 million euros from 202.6 million euros, as well as a 29 percent rise in profit, to 81.6 million euros from 63.1 million euros a year earlier.

Analyzing its financial results, DESFA’s administration mainly attributed last year’s significant revenue increase, up by over 75 million euros, to higher regulated earnings, which grew by 69.2 million euros.

In her message to shareholders, DESFA’s chief executive officer Maria Rita Galli, made note of the business model followed by the company. “In conditions of great instability and huge volatility, DESFA’s business model has proved resilient, with the company occupying a strong position at the forefront of initiatives launched at national and European level to enhance security of supply in Greece and southeastern Europe,” DESFA’s CEO noted.

“The speed with which DESFA reacted to the interruption of Russian gas flow to Bulgaria, transforming the Greek gas grid into a transit corridor, led to a gas exports increase of approximately 300 percent compared to the previous year, supported by 78 LNG cargoes unloaded at the Revythoussa terminal, whose storage capacity increased by more than 60 percent in record time with the installation, in June 2022, of a floating storage unit,” she continued.

DESFA also announced it is currently looking to separate regulated and non-regulated activities, through the formation of a new company, following a request by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Greece becoming a key gas exporter, rise in loads relayed

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

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

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

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

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

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

 

 

DEPA Commercial plans extra LNG orders for March, April

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DEPA Commercial is planning to place extra LNG orders for March and April as a result of higher consumption levels at natural gas-fired power stations, prompted by increased electricity exports, as well as a greater level of natural gas exports to Bulgaria.

The gas company intends to import three LNG shipments in April and is also considering an additional LNG order for this month, which would be shipped in along with a 40,000-cubic meter order placed by energy company Elpedison, scheduled to arrive in just a few days, on March 13.

Should DEPA Commercial go ahead with this latter March order, it would be the gas company’s second for the month. DEPA Commercial has already placed a 73,855-cubic meter LNG order that is due to arrive tomorrow.

Natural gas-fired power stations in Greece have been operating at full capacity in recent times to cover increased electricity exports to neighboring countries, where electricity prices have exceeded those of the Greek market.

Two days ago, electricity exports reached 27.5 GWh, while electricity imports were under 6 GWh.

Additional natural gas exports to Bulgaria in recent times have also prompted the need for more LNG in Greece.

To date, four LNG orders for March, totaling 261,447 cubic meters, have been placed by three companies, DEPA Commercial, Mytilineos and Elpedison.

In general, enterprises are moving cautiously with any extra LNG orders as a result of fluctuating natural gas prices in international markets. Companies placing gas orders at current price levels could be set back millions by any sudden price dip.

 

Low temperatures in Europe pushing gas prices higher, LNG tankers returning

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Lower-than-usual temperatures for this time of year have greatly increased the pressure on natural gas prices, driving prices higher.

Gas prices have also increased in other European markets, including Belgium, the Netherlands and Germany.

In some markets, such as that of the UK, the strong demand for gas has also been attributed to factors other than the low temperatures, such as reduced wind energy production.

The current price for gas at Dutch gas trading platform TTF is 17.66 €/MWh, 17.233 €/MWh at the PEG exchange, 18.17 €/MWh at the NCG, 18.304 €/MWh at Gaspool, 18.529 €/MWh at the VTP,  and 18.575 €/MWh at the PSV, according to ICIS Heren, an established information provider for the gas, power and carbon markets.

The higher gas demand has prompted an increase in LNG tanker deliveries to European destinations. A total of 10.2 billion cubic meters were added to European terminals in March, the highest level recorded since April, 2020, and almost double the 5 bcm figure registered in January, according to latest data.

Low gas prices at European hubs earlier this year resulted in LNG tanker routes to Asian markets, where prices and profit margins were greater. Higher prices in Europe are now bringing back tankers to the continent.

As for the Greek market, two LNG tankers are scheduled to arrive at the Revythoussa terminal, on the islet just off Athens, in April, beginning, early in the month, with a joint order placed by the Heron and Mytilineos companies for 73,855 cubic meters each. It will be followed by a second order, scheduled for late in April, by Elpedison (118,168 cubic meters) and Motor Oil Hellas (33,235 cubic meters).

Two further shipments are expected at the Revythoussa terminal in May, according to the current schedule, one for Mytilineos, the other for Elpedison.

Energy transition to boost medium-term gas demand; 6 bcm total expected in ’20

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The energy transition is boosting the prospects of an increase in Greek natural gas consumption, which could rise by 2.5 to 3 bcm in the medium term, market experts project.

Pundits expect total gas consumption in 2020 to reach 6 bcm, up considerably from levels registered in 2019, and stabilize at this level in 2021.

Electricity generation is a key factor in the anticipated rise of gas consumption as the withdrawal of lignite-fired power stations should increase the energy-mix share of natural gas to levels of between 30 and 40 percent.

The rise in gas consumption in the short term will greatly depend on the number of new gas-fired power stations to be introduced. For example, a gas-consumption increase of as much as 1.5 bcm is expected if three gas-fired power units with respective capacities of 800 MW are introduced to the system.

Exports are expected to add a further 1 bcm to the market’s size, while small-scale expansion covering the shipping sector and needs of detached areas should add another 500 million cubic meters to consumption.