LNG truck-loading

DEPA Commercial: LNG truck loading fee inhibiting growth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DESFA launches LNG truck loading service, suppliers keen

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

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

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

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

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

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

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

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