Block 2 license, west of Corfu, granted 12-month extension

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, has granted a 12-month extension, until March, 2025, to a hydrocarbon exploration license held by Energean and Helleniq Energy, formerly Hellenic Petroleum (ELPE), for offshore Block 2, west of Corfu and reaching the marine border with Italy.

The extension was granted following a request submitted by Energean, head of the two-member consortium exploring Block 2, to allow more time for the establishment of a land-based logistics base.

Meanwhile, processing of 3D data collected at Block 2 by geophysical services company PGS on behalf of the consortium is nearing completion, energypress sources informed. Signs to date are promising, indicating that drilling at the designated marine area is highly likely.

The two consortium members are expected to decide on whether to explore the offshore plot further over the next 12 months. If not, Energean and Helleniq Energy will be required to return their license to the Greek State.

Hydrogen, CCS development concerns expressed by officials

The country’s planned regulatory framework and financial support for development of the hydrogen sector and a CCS supply chain lack realism and flexibility, market players have protested.

These complaints were directed towards the Greek government and the European Commission as a Brussels task force and top-ranked energy ministry officials continue talks on pending issues ahead of Greece’s application for a fourth installment of Recovery and Resilience Facility funds.

Giorgos Alexopoulos, deputy CEO at Helleniq Energy, formerly named Hellenic Petroleum, told an annual RRF conference that EU policy on the regulatory framework for hydrogen development is flawed, making production of hydrogen almost impossible beyond 2030.

He attributed this concern to a green hydrogen regulation requiring RES participation in national grids to be at a level of over 90 percent.

“This requirement places in doubt green hydrogen production almost anywhere in Europe, except for the Nordic countries,” Alexopoulos supported, calling on the European Commission to show more flexibility on the matter, a stance that was backed by Johannes Luebking, head of the visiting RRF task force.

Failure to resolve the issue will delay the hydrogen sector’s development and its penetration of natural gas networks, Alexopoulos warned.

Greece has committed to having prepared a regulatory framework for hydrogen by June, one of the requirements set if the country Greece is to secure 795 million euros in financial support for energy projects through REPowerEU, bolstering the preceding RRF initiative.

New ExxonMobil talks for energy deputy on Crete plans

Deputy energy minister Alexandra Sdoukou will be holding talks with a top-ranked ExxonMobil official for the second time in ten days, focused, once again, on Crete’s offshore exploration prospects, when she meets with Dr. John Ardill, Vice President of Global Exploration at ExxonMobil, on the sidelines of the EGYPES energy conference in Egypt.

The event, being staged tomorrow and Wednesday, is expected to attract major players of the international energy market.

Sdoukou held talks on February 9 with Rochdi Younsi, ExxonMobil’s Vice President of International Government Affairs Division, at the company’s Washington office.

At EGYPES, Greece will be represented by Sdoukou, the deputy energy minister; Aristofanis Stefatos, chief executive officer at EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company; as well as Anastasios Vlassopoulos, CEO at Helleniq Upstream.

At the recent Washington meeting, Greece’s deputy energy minister discussed the next steps of a joint plan for procedures to lead to a final investment decision from ExxonMobil for drilling at offshore blocks south and southwest of Crete.

Initial results of 2D seismic surveys conducted by the ExxonMobil-Helleniq Energy consortium at these offshore Cretan plots are expected in March, when the consortium plans to inform the Greek government.

Crete seismic survey results, looking promising, in March

Initial results of 2D seismic surveys conducted by the ExxonMobil-Helleniq Energy consortium at plots off Crete are expected in March, when the consortium plans to inform the Greek government.

If these early results are promising, the ExxonMobil-Helleniq Energy consortium is expected to seek permission from the Greek government to conduct exploratory drilling.

Back in 2022, Prime Minister Kyriakos Mitsotakis, during a visit to the headquarters of EDEY – now reformed to EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company – had announced that the country needs clarity on whether it possesses exploitable deposits. The time to know is now approaching.

Greece’s hydrocarbon prospects could go either way, though, according to some sources, preliminary results are encouraging enough for the ExxonMobil-Helleniq Energy consortium to seek permission for exploratory drilling.

Interest in EDEYEP’s program, announced over a year ago, for 2D and 3D seismic surveys at a total of six blocks, both onshore and offshore – in Corfu, the Ionian Sea, Ioannina, the Gulf of Kyparissia, and west and southwest of Crete – is now heating up again.

At present, the two offshore Cretan blocks surveyed by the ExxonMobil-Helleniq Energy consortium are attracting most interest. It has been rumored for quite some time now that Chevron, the world’s second-biggest producer of natural gas, is interested in joining this consortium.

Quite clearly, if expectations are fulfilled and rumors of significant recoverable hydrocarbon deposits are confirmed, Greece’s energy landscape will be completely reshaped.

The Cretan offshore blocks are situated at a distance from sea areas claimed by Libya, which, last January, had expressed mild protest against seismic surveys conducted southwest of Crete on behalf of the ExxonMobil-Helleniq Energy consortium.

The Greek Foreign Ministry responded by informing the Tripoli government that these seismic surveys took place in areas under Greek jurisdiction, in accordance with rules of the International Law of the Sea.

Ministry pushes for energy-storage project progress

Deputy energy minister Alexandra Sdoukou has made clear her determination to remove obstacles that could delay investments concerning the installation of standalone batteries by companies that submitted successful bids to a first energy-storage auction.

Swift development of energy-storage projects is seen as crucial by the energy ministry so that the need for RES output cuts, performed to prevent grid overloading, may be restrained.

Earlier in the week, the deputy minister chaired a meeting involving various sector officials for an update on the progress of standalone battery projects, equipment orders, plans and timetables.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, officials from power grid operator IPTO and RES market operator DAPEEP, as well as the heads of renewable energy and storage projects all took part in the meeting.

Sdoukou appeared determined to speed up procedures concerning the issuance of connection terms for energy storage projects and to also establish a system for monitoring their progress. Investors were asked to send monthly reports on the progress of projects.

At the meeting, IPTO ensured that all RES projects with standalone batteries will have received connection terms by the end of February. Also, the deputy energy minister asked DAPEEP, the RES market operator, to prepare operational contract details.

A total of twelve energy-storage projects developed by seven companies secured the first auction’s entire capacity of 411 MW at an average price, for a year, of 49,748 euros per MW.

Helleniq Energy and Intra Energy (Intrakat) submitted successful bids for three projects each, PPC Renewables secured operational support for two projects, while Aenaos (Mytilineos), Energiaki Techniki, Energy Bank and the Agapi Ilios energy community submitted successful bids for one project apiece.

Competition remains strong for second storage auction

A total of 55 applications representing standalone batteries with 1,668 MW in capacity have been submitted by RES investors to a second auction offering investment and operational support for standalone batteries, a solid turnout ensuring the strong competition registered at the first auction will be maintained.

Investment and operational support will be offered to projects totaling 288.21 MW, meaning applications for participation have oversubscribed this capacity by 5.7 times.

The field of contestants will be finalized at noon today, when a deadline for letters of guarantee expected from participants is set to expire.

According to sources, most participants have already submitted their letters of guarantee with applications. As a result, the number of participants is not expected to diminish.

All participants face 100-MW capacity limit totals for projects submitted to the first two auctions. Helleniq Energy, power utility PPC and Intrakat already exhausted this limit through the first auction and, as a result, cannot participate in the follow-up procedure.

Virtually all other major energy groups with a market presence in Greece have applied to  participate in the second auction, sources informed. These include, TERNA Energy, Mytilineos, the Copelouzos group, Elpedison, MORE, Enel, EDF, EDPR, BayWa, KiEFER and Faria.

A total of 12 projects were successful in the first auction, securing guaranteed revenues of between 34,000 and 64,100 euros per MWh for a year. A starting price of 115,000 euros per MWh, for a year, has been set for the second auction. Bidding is not expected to drop below 45,000 euros per MWh, for a year, market officials have projected.

 

Offshore Crete drilling decision in 2024, signs encouraging

ExxonMobil and Helleniq Energy, the holders of offshore licenses west and southwest of Crete, are awaiting the results of seismic surveys completed by Norwegian geophysical company PGS in February before deciding, within 2024, whether to take a next step and conduct exploratory drilling.

The partners are expected to reach a decision within the next twelve months.

Officials at EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, have already noted preliminary results of surveys are encouraging.

Drilling is unlikely over the next year, but if all goes smoothly, such work is expected to be carried out in 2025, unless the license holders opt to also conduct 3D seismic surveys, in which case drilling would be postponed until 2026.

 

Helleniq Energy: Clarity needed on DEPA Commercial future

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.

 

 

Greek-North Macedonian oil pipeline relaunch back on track

A Greek-North Macedonian oil pipeline, out of use over the past decade, appears to be back on track for a reopening following such a step’s approval by the neighboring country’s regulatory authority.

The pipeline’s owner, Vardax, a subsidiary of Helleniq Energy, formerly named Hellenic Petroleum (ELPE), had submitted a request in November, 2022 for the pipeline to be put back into operation, but the pending issue had remained unresolved.

Helleniq Energy CEO Andreas Siamisiis revealed the news of the North Macedonian regulatory authority’s approval of his company’s request for the pipeline’s reopening in an interview with Greek daily Kathimerini.

The pipeline was developed in 2002 to link the Greek company’s Thessaloniki refineries with its OKTA refinery in North Macedonia.

In 2013, the Greek energy group decided to change the use of the pipeline for the transport of clean products. However, it has remained dormant until the present as a result of the delayed new license, despite the modification of infrastructure.

The pipeline is fully ready to operate, Siamisiis, the Helleniq Energy CEO, has stressed. A comprehensive inspection of the pipeline was recently completed, extending its operating ability to June, 2051.

Helleniq Energy intends to transport diesel fuel through the pipeline once it is reopened.

If reopened, the pipeline, whose current capacity measures 2.5 million tons, annually, promises to offer multiple benefits for both Greece and for the energy group.

Energy security and sufficiency in the wider Balkan region would be reinforced, while Greece’s role as an important regional energy hub would be enhanced, the Helleniq Energy CEO pointed out.

 

Energy firms dominate Fortune 500 Europe list’s top spots

European energy firms have bounced back, as highlighted by their dominant rankings on the first-ever Fortune 500 Europe list, published yesterday.

The Fortune 500 Europe list dispels myths about the continent and also reads like a throwback to the 20th century, when energy and automotive industries were the prime players in the global economy – and companies were led by men.

The list’s top spot is held by British energy giant Shell, with six energy companies and three automotive companies featuring in the top 10. This is starkly different to the US list, where three Big Tech companies—Amazon, Apple, and Alphabet—feature in the top 10. In Europe, the largest pure tech company is SAP, at No. 114, followed by 1990s powerhouses Ericsson (No. 141) and Nokia (No. 147).

One would have to go back to the late 1990s to find a Fortune 500 akin to what the Fortune 500 Europe looks like today. Twenty-five years ago, GM topped the US list with Ford and Chrysler not far behind, and Exxon, Mobil (and GE, to a lesser extent) representing the energy sector in the top 10.

The list of Europe’s largest companies, based on revenue, includes four Greek energy companies, Motor Oil, at No, 213, Helleniq Energy, formerly Hellenic Petroleum (ELPE), at No. 243, power utility PPC, at No. 298, and Mytilineos, at No. 444.

On the diversity front, too, Europe lags the US. Just 7 percent of Fortune 500 Europe companies are led by a woman, compared to 10 percent on the US list, a statistic that questions the continent’s progressive image.

The Fortune 500 Europe list includes companies from 24 different countries, ranging, in size, from Germany’s MTU Aero Engines, with revenues of $5.6 billion, at No. 500, to London-based oil and gas giant Shell ($386.2 billion) at No. 1.

Combined, the 500 European companies generated $13.94 trillion in revenue in the most recent fiscal year.

 

Inaugural offshore wind farm auctions in ’27, 6 areas likeliest

Greece’s first auctions for offshore wind farm areas are expected to take place in 2027 with six areas off Crete, Gyaros, Rhodes and Evia considered the likeliest to be offered to investors as part of the country’s efforts for an offshore energy portfolio of 1.9 GW by the end of the decade, energy ministry officials have informed.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing the effort, also set, late last year, 2027 as the inaugural year of these auctions.

The Greek government recently reduced the National Energy and Climate Plan’s 2030 capacity target for offshore wind farms to 1.9 GW from 2.7 GW.

EDEYEP has scoured Greek waters for locations suitable for development of offshore wind farms. Areas making the grade have been included in a National Offshore Wind Farm Development Program, presented just days ago by the company, along with a Strategic Environmental Impact Assessment.

Flora Karathanasi, an EDEYEP consultant, named six of ten prospective offshore areas for initial development that would contribute to the 2030 target. The six areas are located northeast of Rhodes; around Gyaros, in the northern Cyclades; off Agii Apostoli in eastern Evia; off northeastern Crete, between Agios Nikolaos and Sitia; and off eastern Crete.

According to the National Offshore Wind Farm Development Program, five of these areas are planned to host floating wind turbines, while only one, off northeastern Crete, will host fixed-foundation wind turbines.

The program’s presentation coincides with a heightened level of international RES investment interest in Greek offshore areas.

Swedish-headquartered Hexicon’s Head of Business Development, Henrik Baltscheffsky, recently told energypress that Greece can become a European focal point for floating wind energy, a view he reiterated days later at the 5th Renewable & Storage Forum in Athens.

Also, the Greek subsidiary of Denmark’s Copenhagen Offshore Partners is scheduled to launch its Athens office this Thursday. COP is partnering with the fund management company Copenhagen Infrastructure Partners (CIP), with which Greece-based industrial and energy group Mytilineos shares an alliance.

In addition, Corio Generation, a subsidiary of Australian global financial services group Macquarie, has also expressed an interest to enter Greece’s nascent offshore wind sector. It has announced the formation of a joint venture with Greek company Globalsat.

These moves come following a series of like-minded announcements by domestic companies with major international players (Terna Energy – Ocean Winds; Helleniq Energy – RWE; Intrakat – Parkwind; Motor Oil – Masdar).

Helleniq Energy ‘monitoring’ Lukoil refinery sale in Bulgaria

Helleniq Energy, formerly Hellenic Petroleum (ELPE), is keeping a close watch on the sale process of Russian multinational energy corporation Lukoil’s refinery in Bulgaria, CEO Andreas Siamisiis has told analysts during a presentation of the Greek energy group’s 3Q and nine-month results.

Bulgarian finance minister Asen Vasilev recently told Financial Times that Lukoil is in the process of selling the only refinery in the neighboring country.

According to Siamisiis, political considerations, not just business decisions, are behind Lukoil’s decision to sell this asset in Bulgaria. Rumors of the refinery’s sale had circulated over the past year and a half, the Helleniq Energy chief executive added.

Though Helleniq Energy’s Vision 2025 strategy does not include major investments in refineries, the energy group is monitoring the sale of the Lukoil refinery in Bulgaria given its location in a neighboring region, Siamisiis pointed out.

As for Helleniq Energy’s diversification into renewables, the group has already built up 356 MW in facilities now operating, company officials informed. A further 700 MW in RES facilities are at various stages of development, which puts the group on target for 1,000 MW by 2025 and 2,000 MW by 2030, the officials added.

 

Energy crisis brings fossil fuels back to the forefront

The energy crisis has brought about a revival of the hydrocarbons sector, as highlighted by a growing number of energy companies that have decided to reactivate exploration and production projects that had been put on hold as a result of climate-target pressure. Much of this reignited upstream activity is occurring in Europe. Greece must not be left behind.

Yesterday, French oil and gas giant TotalEnergies announced it would boost fossil fuel output over the next five years, a contrast to its reduced production in recent years.

Earlier in the week, on Wednesday, the UK’s North Sea Transition Authority approved plans for production at the new Rosebank oil and gas field in the North Sea, estimated to contain approximately half a billion barrels of oil.

Norwegian upstream giant Equinor, holding the biggest stake in the Rosebank field, estimates production will begin in 2030, with initial investments seen reaching roughly 3.8 billion dollars before totaling approximately 10 billion dollars by 2051.

Two two months earlier, UK Oil & Gas Plc had announced it would recommence production at its Avington oil field, estimated to contain 60 million barrels. Production at this field had been disrupted at an embryonic stage six years ago, with output having reached just several hundred thousand barrels.

In late August, Norway, which has captured the biggest share of Russia’s lost natural gas supply to the EU, announced that a latest round of tenders for licenses at 92 locations, 78 in the Barents Sea and 14 in the Norwegian Sea’s northwest, had attracted interest from 25 companies, including majors such as Shell, ConocoPhillips, Equinor and Aker BP.

The heightened interest expressed by majors highlights a turnaround of their green-focused investment policies of recent years. Shell, for instance, has announced it will disrupt an investment cutback plan of between 1 and 2 percent, annually, until 2030, adding it will increase investments in natural gas.

The hydrocarbons sector is also making a comeback in regions closer to Greece, Italy being a prime example. Italy had stopped issuing new licenses for many years but took a turn in November, when officials announced the country will be holding tenders offering ten-year licenses that offer total production potential of 15 bcm in natural gas from deposits in the Adriatic Sea.

Quite soon, companies operating in Greece will receive results from seismic surveys conducted west and southwest of Crete (ExxonMobil – HelleniQ Energy); Gulf of Kyparissia (Helleniq Energy); Ionian Sea (HelleniQ Energy); and Northwest Ionian (Energean – HelleniQ Energy).

In addition, Energean is awaiting an environmental permit to proceed with exploratory drilling in the Zitsa area, close to Ioannina, northwestern Greece.

Given the international developments and Greece’s energy needs – 6 bcm of natural gas a year and 300 barrels of oil per day – imported at lofty prices, the Greek State must facilitate, it has become clear, the endeavors of companies seeking to move ahead with their projects.

DEPA Commercial privatization set back, ELFE case continues

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.

PPC chief to take part in Romanian Three Seas meeting

Greece aims to bolster its geopolitical influence in the Balkans through energy, power utility PPC’s takeover of Italian group ENEL’s Romanian subsidiary ENEL Romania being a key part of this strategy.

In addition to PPC’s takeover of ENEL Romania, Helleniq Energy recently invested in Romania and had been preceded by Mytilineos – both in renewable energy projects.

PPC’s ENEL Romania takeover has prompted an announcement from Romanian president Klaus Iohannis, who named Greece as a new member of The Three Seas, a diplomatic initiative taken by Romania’s political leadership to bring together EU member states and candidates located between the Baltic, Adriatic and Black Seas for collaboration in the fields of energy, infrastructure and the digital economy.

Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovakia, Slovenia, and Ukraine are the other members of The Three Seas initiative.

Iohannis, Romania’s president, will host a two-day meeting in Bucharest on September 6 and 7 for talks on collaboration in these domains. Ministers and entrepreneurs representing the aforementioned countries, including PPC’s chief executive officer Giorgos Stassis, energypress sources have informed, will take part at the upcoming Bucharest meeting.

Romania has become a geopolitical focal point as a result of the country’s close proximity to war-entangled Ukraine. In addition, Bucharest has established a pivotal role as a result of its support of Ukraine in the war with Russia and Moldova’s EU membership quest. Romania has also facilitated the movement of grain across its borders.

Two alternatives for DEPA Commercial bourse listing

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.

HELLENiQ Renewables binding agreement for acquisition of Kozani PV parks

In the context of its Vision 2025 Strategy, HELLENiQ ENERGY Holdings S.A. has just announced the execution by its 100% subsidiary, HELLENiQ Renewables, of a binding agreement with LIGHTSOURCE RENEWABLE ENERGY GREECE HOLDINGS (UK) LIMITED for the acquisition (upon the start of commercial operations) of a PV portfolio in Kozani with an aggregate capacity of up to 180 MW, of which over 50% is contracted on a long-term basis. The projects are expected to start commercial operations gradually, between 1Q24 and 3Q24.

This agreement accelerates the implementation of the HELLENiQ ENERGY Group’s strategic plan to reach at least 1 GW of operating RES capacity by 2025 and over 2 GW by 2030.

 

DEPA Commercial privatization plan now being reexamined

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.

 

Energy storage auction winners list disclosed: 12 projects, 7 bidders

A list of twelve energy-storage projects that won the bidding in an auction staged by RAAEY, the Regulatory Authority for Waste, Energy and Water are being promoted by a total of seven successful participants.

Helleniq Energy and Intra Energy (Intrakat) are each behind three of these 12 projects, PPC Renewables bid successfully for two projects, while Aenaos (Mytilineos), Energiaki Techniki Anaptyxiaki, Energy Bank, and one energy community bid successfully for one energy storage project each.

RAAEY is expected to officially announce the details, including bidding levels, of the twelve winning projects, to share roughly 400 MW, immediately following a board meeting today.

The lowest bid, 34,000 euros per MWh, for a year, was submitted by Helleniq Energy and the highest, 64,000 euros per MW, for a year, was lodged by Intra Energy, it has already been disclosed.

According to energypress sources, the finalized list stands as follows: Helleniq Energy – approximately 100 MW, divided into three projects (50 MW, 25 MW, 25 MW); Intra Energy – approximately 100 MW, divided into three projects (50 MW, 25 MW, 25 MW), PPC Renewables – approximately 98 MW, divided into two projects (50 MW and 48 MW); Aenaos (Mytilineos), one project (48 MW); Energiaki Techniki Anaptyxiaki, one project (7.8 MW); Energy Bank, one project (50 MW); Energy community (8 MW).

 

PPC’s share of electricity production slides to 37%

Power utility PPC’s share of electricity production fell sharply to 37 percent in the first half of the year, a 6 percent drop compared to a year earlier.

The company’s administration, which has just presented the energy group’s first-half results, mainly attributed this contraction to reduced output at its natural gas-fueled power stations, driven lower by a slump in PPC’s high-voltage market share, down from 90.1 percent to 53.8 percent over the past year.

During this period, three major industrial consumers, Aluminium of Greece, Helleniq Energy, formerly named Hellenic Petroleum (ELPE), and metal processing company Viohalko, ended supply deals with PPC and established new agreements with rival producers.

However, Viohalko, one of Greece’s biggest electricity consumers, will reestablish an association with PPC in 2025, when a green-energy power purchase agreement (PPA) between the two is set to commence.

PPC believes it can regain, over the next few years, some of the high-voltage market share it has shed by offering industrial consumers competitively-priced green energy.

This is a key reason behind PPC’s current push towards developing a sizeable RES portfolio, whose target for 2026 has been set at 5 GW.

 

Extra 20% of ‘undervalued’ Helleniq Energy to be listed

Greek privatization fund TAIPED and the Latsis group’s Paneuropean Oil & Industrial Holdings, the two main shareholders of Helleniq Energy, formerly named Hellenic Petroleum (ELPE), appear to have decided to list a further 20 percent stake of the company’s shares on the Athens stock exchange.

TAIPED currently holds a 35.48 percent stake of Helleniq Energy, and Paneuropean Oil & Industrial Holdings holds 17.4 percent, while 17.4 percent of Helleniq Energy’s shares are already being traded on the Athens bourse.

Discussion regarding the additional allocation of a bundle of Helleniq Energy shares on the Athens stock exchange began as part of broader strategy pursued by the privatization fund to optimize the company’s shares that are publicly traded.

A further privatization effort in 2019 did not succeed and, since then, TAIPED has sought the best possible way to exploit this asset.

According to sources, the privatization fund and Paneuropean Oil & Industrial Holdings will each contribute 10 percent stakes in Helleniq Energy to the listing.

The intention of this move is not to lure a strategic investor but, instead, to increase the company’s free float, the sources added.

Just months ago, Helleniq Energy’s management suggested the company’s share price does not reflect the true value of the energy group. Also, the company’s restructuring and Vision 2025 investment plan, now being implemented for greater emphasis on green-energy activities, have so far failed to boost the share price of the energy group.

The latest plan, sources noted, will seek to deliver more goodwill to shareholders and reflect the group’s true value on the board.

Energy storage auction draws highest bid of €64,000/MW/yr

A first auction offering operating and investment support for energy storage projects has produced a highest offer of 64,000 euros per MW, for a year, and a lowest offer of 34,000 euros per MW.

Also, 90 of 93 bids submitted were considered valid by RAAEY, the Regulatory Authority for Waste, Energy and Water. The three investors who had bids rejected have until August 7 to submit appeals. The 93 bids submitted represented a total capacity of 3.3 GW.

A final list of projects securing operational and investment support, based on the lowest subsidy levels requested, will be established at RAAEY’s next plenary session on August 10.

Investment support has been set at 200,000 euros per MWh. Operating support to be offered will be shaped by the bids submitted by all participating investors.

Many of the bids were significantly lower than the maximum price permitted, 115,000 euros per MW for a year, which was essentially the starting price of the tender, sources informed.

A total energy storage capacity of 400 MW on offer was covered by 12 projects with respective capacities of up to 50 MW planned by seven companies, Helleniq Energy, PPC Renewables, Mytilineos, Intrakat, Energy Bank, Energiaki Techniki Anaptyxiaki, and one energy community.

 

Helleniq Energy moves on to next stage for licenses in west

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.”

Helleniq Energy planning solar farm for Thessaloniki refinery

Helleniq Energy, formerly named Hellenic Petroleum (ELPE), plans to fully cover the electricity needs of its Thessaloniki refinery with green energy through the development of a major-scale solar energy farm that will be directly linked to the refinery.

The solar energy farm is planned to be located in Thessaloniki’s wider area, facilitating its link with the refinery.

Helleniq Energy also intends to install standalone batteries for energy storage when the solar farm’s green energy is not instantly used by the refinery.

The use of hydrogen as a means of chemical storage of excess electricity generation is also being considered. In practice, this means megawatt-hours not consumed at the same time will be used to produce renewable hydrogen through electrolysis, which will later be used as fuel for electricity generation via fuel cells when there is no production from the solar energy facility, or when production to meet the refinery’s electricity needs is insufficient.

Helleniq Energy is determined to make its refineries energy-independent as electricity supply issues that have arisen over recent years have seriously impacted the energy group’s refineries.

The company is also considering installing a high performance heat and power cogeneration unit at its refinery in Elefsina, west of Athens, to fully cover this facility’s energy needs.

 

Helleniq Energy planning power supply firm for Cyprus

Helleniq Energy, formerly Hellenic Petroleum (ELPE), is planning a double entry into the Cypriot energy market, as, besides its investment plans in the RES sector, the company is also preparing to launch a subsidiary active in electricity supply to businesses and industries.

For the time being, Helleniq Energy does not appear to be  planning to also enter the residential electricity market.

Helleniq Energy recently acquired two solar energy farms on Cyprus. “This investment, along with the establishment of our new electricity supply company in the Cypriot market, enables us to offer integrated energy solutions to our clientele and, at the same time, contribute to the acceleration of the country’s energy transition,” noted Andreas Siamisiis, CEO at Helleniq Energy.

These two Helleniq Energy initiatives in the Cypriot market are being developed in coordination as the electricity production stemming from the solar parks, offering a total capacity of 15 MW and annual green energy capacity estimated at over 27,000 MWh, will be received and marketed by the company’s prospective electricity supply subsidiary, sources informed energypress.

Helleniq Energy is backed by a two-decade presence in Cyprus’ fuel market, through its EKO Cyprus subsidiary, represented by a network of 97 petrol stations. EKO Cyprus is the country’s market leader with a market share of over 32 percent.

Helleniq Energy plans to develop a Cypriot RES portfolio totaling 100 MW.

 

Energean expecting 3D survey results for Block 2 within ’23

International hydrocarbon exploration and production company Energean expects to receive the results of a 3D seismic survey conducted by PGS last November at offshore Block 2 license, west of Corfu and reaching the marine border with Italy, within 2023, probably in the second half of the year, energypress sources have informed.

Energean heads a consortium also involving Helleniq Energy, formerly Hellenic Petroleum (ELPE), for this license.

Once the PGS findings have been received, Energean, depending on the prospects, may go ahead with exploratory drilling in 2024.

Energean expects to begin drilling sooner at its onshore Ioannina block, in the country’s northwest, as this license is at a more advanced stage. The company is currently writing up its response to observations raised, during consultation, on this venture’s environmental impact.

Energean may commence drilling at the Ioannina block in 2024 if an environmental permit is issued by autumn, a best-case scenario.

Helleniq Energy CEO Andreas Siamisiis has informed that no investment decisions are expected in 2023 for the company’s other offshore licenses, off Crete and in the Ionian Sea.

ExxonMobil-Helleniq Energy offshore Crete surveys done

Norwegian geophysical company PGS has completed 2D seismic survey work west and southwest of Crete on behalf of the ExxonMobil-Helleniq Energy consortium, holding licenses for blocks in the two areas.

Results offering a picture on the hydrocarbon prospects at these offshore Cretan areas are expected to be ready in approximately one years’ time, sources informed.

PGS’ Sanco Swift vessel spent nearly three-and-a-half months conducting seismic surveys at the two offshore blocks, measuring a total of 40,000 square kilometers, to collect data that will now be examined at the company’s specialized labs.

According to sources, PGS collected more than double the required seismic survey data for the ExxonMobil-Helleniq Energy consortium following an agreement with EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

The PGS vessel scanned 13,000 square kilometers of offshore territory, double the 6,500 square meters specified in the consortium’s license (3,250 square meters for each block).

Ensuing and more detailed 3D scans by the ExxonMobil-Helleniq Energy consortium at these blocks has not been ruled out, sourced noted. If so, this follow-up effort would take place during the final two months of 2023 or early in 2024, the sources added.

However, ExxonMobil, the consortium’s chief partner, is most likely to skip this stage and move straight on to drilling if the 2D seismic results are favorable.

 

Elpedison set to finalize decision for Thessaloniki CCGT

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.

 

DEPA Commercial staging solar farm tenders for its RES entry

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.

Crete hydrocarbon hopes lifted by initial seismic survey results

Initial findings of ongoing seismic surveys conducted at licenses off Crete have raised hopes of significant hydrocarbon discoveries, government officials have told an event staged by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

If the upbeat prospects generated by emerging data are confirmed during drilling, then quantities to be extracted off Crete will cover Europe’s projected energy insufficiencies, government officials contended on the sidelines of the EDEYEP event, staged last night to mark its transition from EDEY, the Greek Hydrocarbon Management Company.

A recent report released by IEA, the International Energy Agency, notes Europe will face annual energy shortages of 30 billion cubic meters for ten years, even if renewables, biogas and hydrogen are brought in to replace Russian natural gas quantities.

Norwegian company PGS is currently conducting 2D surveys at offshore blocks west and southwest of Crete on behalf of ExxonMobil and Helleniq Energy, formerly ELPE.

Local authorities expect drilling at these licenses to commence in early 2025.

Domestic upstream activity has increased, EDEYEP president Rikard Skoufias told the company event, noting seven seismic surveys have been staged in Greece over an eight-month period compared to just two over the past decade.