gastrade

Strong reservation interest for Alexandroupoli LNG terminal

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A market test for an FSRU project planned for development by Gastrade in Alexandroupoli, northeastern Greece has drawn greater than expected interest from traders for capacity reservations, who expressed interest for a level totaling one and a half times the planned LNG terminal’s full capacity.

A further increase of significant magnitude is expected as a number of major trading firms have requested and been given a deadline extension of a few days to prepare all needed documents for their expressions of interest. The market test’s new deadline has now been extended to December 31.

The overwhelming level of interest ensures the project’s sustainability as well as the development interest of its partners. It also reflects the need of regional countries for alternative natural gas sources as well as an anticipation of a more significant role to be played by LNG in the global energy mix.

Besides the gas utility DEPA and Bulgarian Energy Holding (BEH), two companies whose interest in Alexandroupoli FSRU capacity is already widely known, all major traders, Hungarian and Serbian firms, as well as Greece’s main power utility PPC emerged to express interest, according to sources.

Without a doubt, the project, granted PCI status by the European Commission, is politically supported at national, European and cross-Atlantic levels.

According to Gastrade, the project will be ready by the end of 2020. DEPA and BEH are soon expected to be inducted into the project’s consortium as partners. At present, it appears the consortium will be comprised of five partners, each holding 20 pecent stakes – Gaslog, DEPA, BEH, Gastrade and a fifth still-unknown partner.

Alexandroupoli FSRU tender draws major international interest

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More than ten companies are believed to have expressed official interest in a tender launched by Gastrade, a member of the Copelouzos group, for provision of a vessel to be used as part of the FSRU facility in Alexandroupoli, northeastern Greece, as well as for the LNG terminal’s development.

The tender’s deadline expired last Friday. Major international players have submitted offers, including foreign companies in collaboration with Greek contractors.

A market test measuring the level of interest for capacity reservations at the planned LNG terminal in Alexandroupoli, promising to serve as a gateway for gas supply to the wider Balkan region, is being concurrently held with the tender. The results of the current market test, whose deadline expires in mid-December, will be pivotal for the project’s final investment decision. A follow-up market test, for binding commercial interest, will also be staged.

The Alexandroupoli FSRU, planned to be constructed as a fixed facility 17.6 kilometers southwest of the city’s port, will have an LNG storage capacity of 170,000 cubic meters and the ability to supply gas at a rate of 900,000 nm3 per hour or 8.3 billion nm3 per year.

Construction of the Alexandroupoli FSRU is scheduled to commence in 2019 while its completion date has been set for July, 2020. The unit’s launch is expected in late September, 2020.

 

First round of crucial market test for Alexandroupoli FSRU launched

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Shareholders at Greek gas company Gastrade, seeking to co-develop an FSRU project in Alexandroupoli, northeastern Greece, will need to make final investment decisions following a market test, whose first round, entailing non-binding expressions of interest, was launched yesterday.

Binding bids, for FSRU capacity reservations, will be made in the procedure’s follow-up round.

Granted PCI status by the EU, the Alexandroupoli FSRU is being widely supported, politically, at national, European and cross-Atlantic levels.

Greek gas utility DEPA and Bulgaria’s BEH are both seen as market test certainties. Plans are now at advanced stages for both to each hold 20 percent stakes in a consortium for the Alexandroupoli FSRU’s development. Final approvals for the consortium entries of both are anticipated but still pending.

The emergence of other players, for FRSU capacity reservations, will be pivotal for the project’s development prospects. Gastrade and its project partners will be hoping to see the emergence of key international players aiming to supply gas to the wider region, including US gas exporters, firms associated with the prospective Greek-Bulgarian IGB link, including Serbian, as well as traders operating in the region.

For quite some time now, there has been talk of a US firm entering the Alexandroupoli FSRU consortium with a 20 percent stake. Cheniere has been named as a possibility but another undisclosed US contender is also believed to be in the running.

The Alexandroupoli FSRU consortium was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also joined. At present, Gastrade holds a 40 percent stake and Gaslog holds 20 percent. DEPA and BEH are also expected to acquire respective 20 percent stakes, while any newcomer is expected to take on half of Gastrade’s current stake.

Surprise US player may enter Alexandroupoli FSRU team

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An additional member, possibly a major US player, could join a consortium for the development and operation of an FSRU project in Alexandroupoli, northeastern Greece, with a 20 percent stake, in addition to DEPA, the public gas corporation, and Bulgaria’s BEH, both preparing to also enter the project’s corporate team.

Technical details are now being worked on by the Bulgarian government for the entries of DEPA and BEH to the Alexandroupoli FSRU’s consortium. It was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also joined.

The government in Sofia is expected to offer its approval within the current month. Once this stage is completed, the consortium will be comprised of Gastrade (40%), Gaslog (20%), DEPA (20%) and BEH (20%). The additional entry being touted would acquire half of Gastrade’s stake, giving all members equal stakes.

Cheniere, the dominant player of the US natural gas market, and another unnamed American enterprise, regarded as a surprise candidate, are both being touted as possible additions to the Alexandroupoli FSRU consortium.

The addition of a non-American enterprise has also been mentioned as Gastrade is believed to be engaged in talks with major traders showing an increasing interest in the specific region.

“A final decision will be reached based on the added value, both strategically and financially, to be brought to the project by the new shareholder,” a source involved in the developments informed energypress.

Meanwhile, a two-stage market test is expected to be launched by mid-September. Gastrade anticipates an accurate measure of the overall commercial interest in the project by the end of 2018, before it makes investment decisions. If all goes as planned, the FSRU project will be ready to operate at the end of 2020.

Important project news is expected to emerge this Friday at a Hellenic-American Chamber of Commerce conference in Thessaloniki, held ahead of the Thessaloniki International Trade Fair, opening Saturday.

The Alexandroupoli FSRU is seen as an important project that may ensure supply of new natural gas quantities to the Greek and regional southeast European markets, while also contributing to the diversification of supply sources and routes. The PCI-status project plan is being widely supported at Greek, EU and cross-Atlantic levels.

 

DEPA, Gastrade agree on capacity reservation for FSRU in north

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The managing director of DEPA (public gas corporation), Dimitris Tzortzis, and the managing director of Gastrade, Konstantinos Spyropoulos, have reached an agreement in Athens regarding the future capacity reservation by DEPA for the LNG terminal in Alexandroupoli, northern Greece, an EU Project of Common Interest developed by Gastrade, as well as for DEPA’s participation in the relevant market test that will be carried out in the coming months, DEPA has announced in a statement.

The agreement was reached within the context of a trilateral meeting between DEPA, the Bulgarian Energy Holding EAD (BEH) and Gastrade.

This is a follow-up to a cooperation agreement signed by the two parties for the participation of DEPA in the share capital of Gastrade, which is expected to be completed soon, as well as for the joint efforts of the parties for further commercial development of the project.

At the same time, the Bulgarian side, following a meeting in Sofia last month by Greek energy minister Giorgos Stathakis and his Bulgarian counterpart Temenuzhka Petkova, confirmed its intention to speed up respective negotiations for the completion of its own participation in the project.

Gastrade is a Greek company that studies, designs, constructs, manages and operates gas infrastructure. The company has already required all licenses needed to begin constructing the LNG terminal in Alexandroupoli.

The project will ensure new gas quantities for supply to the Greek and regional markets of southeastern Europe, contribute to the expansion of gas supply sources and routes, promote competition to the benefit of consumers, supply security in Greece and the Balkans, and improve the reliability and flexibility of the national natural gas system as well as of the regional and trans-European systems.

In February, 2017, GasLog, an international owner, operator and manager of LNG carriers, announced that it had acquired a 20 percent stake in Gastrade.

GasLog’s consolidated owned fleet consists of 29 LNG carriers (25 ships on the water and four on order).

DEPA, backed by a long presence in the Greek gas market, is a modern and competitive group of companies with a dynamic presence in the energy sector. DEPA promotes the development of strategic infrastructure for the supply of gas from diversified sources and routes at competitive prices, with a view to taking a leading role in the markets of the wider region of southeastern Europe.

Bulgarian Energy Holding EAD (BEH) is the holding company for a group of companies which are principally engaged in electricity generation, supply and transmission, natural gas transmission, supply and storage and coal mining. BEH holds leading positions in the electricity and gas markets in Bulgaria and, through electricity exports, in the Balkans. BEH is wholly owned by the Bulgarian state and is the largest state-owned company in terms of total assets in the country. The rights of ownership of the state are exercised by the Minister of Energy.

 

 

 

Alexandroupoli FSRU business decision seen by end of year

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A road map prepared by shareholders of a consortium for the development and operation of an FSRU project in Alexandroupoli, northeastern Greece, lists three basic steps still needed for the venture’s development and operation.

Greece’s DEPA, the public gas corporation, and Bulgaria’s BEH still need to complete negotiations and sign agreements concerning their involvement; an official market test measuring capacity coverage by interested third parties must be staged; and a finalized business plan that would enable the project’s development to commence towards the end of the year, are listed as three pending steps in the road map.

Current developments suggest the official market test will be held imminently, most likely by the summer.

The Alexandroupoli FSRU is seen as a project that may ensure supply of new natural gas quantities for the Greek and regional southeast European markets; contribute to the diversification of supply sources and routes; increase competition, to the benefit of consumers; and boost the reliability and flexibility of both the national and regional gas systems.

These factors have helped reinstate the Alexandroupoli FSRU as an EU Project of Common Interest (PCI).

The project’s interests are linked to those of the Greek-Bulgarian IGB Interconnector.

The Alexandroupoli FSRU plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier, also officially joined the consortium. Due dilligence is currently in progress for DEPA’s entry with a 20 percent stake. DEPA signed a related agreement with Gastrade in October.

Negotiations with Bulgaria’s BEH are also in progress. The firm’s official entry into the project is expected soon.

 

 

 

DEPA, Gastrade formalize their Alexandroupoli LNG affiliation

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Top officials of DEPA, the Public Gas Corporation, and Gastrade signed a Cooperation Agreement in Athens today for DEPA’s involvement in the prospective LNG terminal planned for  Alexandroupoli, northeastern Greece, a project being developed by Gastrade.

The project has been classified as a Project of Common Interest (PCI), facilitating EU funding.

The cooperation agreement, making DEPA’s involvement official, was signed by Theodoros Kitsakos, chief executive officer at DEPA, and Konstantinos Spyropoulos, Gastrade’s managing director. It includes the next steps to be taken for DEPA’s participation in Gastrade’s share capital, as well as a list of common efforts required by both parties to make progress with the project’s commercial development.

The Alexandroupoli LNG terminal promises to secure new natural gas supply quantities for the Greek and regional southeast European markets; offer new gas sources and routes; promote competition to the benefit of consumers; enhance supply security in Greece and the Balkan markets; and improve the reliability and flexibility of the Greek National Natural Gas Transmission System and of the regional and trans-European gas networks.

Over the past two years, DEPA and Gastrade have held a series of constructive meetings, staged to push forward their cooperation with regards to the project, both at national and European levels, and to create the optimal set-up for its development, construction and operation.

DEPA, backed by an extensive Greek gas market presence, is a modern and competitive group with dynamic presence in the energy sector. The corporation promotes the development of strategic infrastructure for the supply of natural gas from diverse sources and routes at competitive prices, with an objective to establish its leading role in the markets of the wider southeast European region.

Gastrade, a Greek utility company that studies, designs, develops, operates and exploits natural gas infrastructures, has obtained all necessary licenses for the Alexandroupoli LNG project,  enabling construction to commence.

Last February, Gaslog, one of the largest international owners, operators and managers of LNG carriers, acquired a 20% stake in the share capital of Gastrade via a 100% owned affiliate. Gaslog owns, operates and manages a fleet of 27 LNG carriers.

 

 

 

 

 

 

 

 

Gastrade announces tender for Alexandroupoli FSRU pipelines

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Gastrade has anounced a tender seeking construction firms for pipeline development linked to a floating LNG terminal (FSRU) planned for Alexandroupoli, northeastern Greece.

The FSRU project, taken on by Gastrade, is envisaged to be connected to Greece’s natural gas grid.

Construction companies have been invited to submit bids for two pipeline sections – submarine and overland. The split of the LNG terminal’s pipelines into two sections is expected to help local construction firms participate in the international tender.

The project’s technical planning stage, funded by the EU, is expected to be completed within the third quarter of the current year; the tender for the project’s construction is scheduled to proceed in the fourth quarter of this year; while a final decision is planned for the first quarter of 2018, Gastrade has announced.

Gastrade has set a September 15 deadline for bids.

 

Monaco-based GasLog subsidiary to acquire 20% of Gastrade

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GasLog Ltd, an international owner, operator and manager of LNG carriers, today announced that a wholly owned subsidiary has entered into a sale and purchase agreement (SPA) to acquire a 20 percent shareholding in Gastrade SA.

Gastrade is licensed to develop an independent natural gas system offshore Alexandroupolis, northeastern Greece, utilizing a floating storage and regasification unit (FSRU) along with other fixed infrastructure.

Gastrade is a private limited company, incorporated in Greece and wholly owned by Asimina-Eleni Copelouzou.

Gastrade has been involved in the development of this FSRU project over a number of years. Closing of the SPA acquisition is subject to the satisfaction of certain closing conditions set out in the transaction documents. GasLog, as well as being a shareholder, will provide operations and maintenance services for the FSRU through an O&M agreement.

Gastrade is currently in discussions with a number of additional potential investors, including DEPA, the Greek state-owned gas company, Bulgarian Energy Holding (BEH), the holding company of the Bulgarian Ministry of Energy and major gas suppliers. Other large-scale international companies have expressed an intention to participate in the ownership and development of the terminal. A number of companies have also expressed interest in supplying LNG to the project.

This FSRU project would provide a new route and a vital source of gas diversification to a number of European countries that are currently highly dependent on pipeline gas in southeast and central Europe. Besides enhancing security of supply in the region, it will promote competition and pricing flexibility.

The project has the backing of the Greek and Bulgarian governments as well as the support of the EU. It has been assigned EU Project of Common Interest (PCI) status, designating it as a priority EU energy infrastructure project. The front-end engineering and design (FEED) study is expected to be part-funded by an EU grant, and is scheduled to commence in early 2017.

Gastrade aims to make a final investment decision by the end of 2017 with the FSRU scheduled to be operational by end of 2019.

Paul Wogan, Chief Executive Officer of GasLog Ltd., commented: “I am delighted that GasLog has been invited to join Gastrade. This is a strategically important energy import project for the region. The FSRU will be used as a gateway for LNG imports into southern Europe, where there is a growing demand and a need to diversify existing gas supply. This announcement, alongside GasLog’s ordering of long-lead items, demonstrates the ongoing development of the company’s FSRU strategy.”

Konstantinos Spyropoulos, Chairman and Managing Director of Gastrade, added: “We are very pleased to have GasLog involved in the project. Their long, successful track record in the maritime and, in particular, LNG sector, coupled with their leading innovation initiatives, makes them an excellent partner to take the project forward. We look forward to working with GasLog to bring this project to commercial operation.”

Monaco-based GasLog is an international owner, operator and manager of LNG carriers. GasLog’s fully-owned fleet includes 18 LNG carriers (including 13 ships in operation and 5 LNG carriers on order). GasLog has four LNG carriers operating under its technical management for third parties. GasLog partners LP, a master limited partnership formed by GasLog, owns a further nine LNG carriers.