The latest developments of a plan aiming to revise slot reservation rules at gas grid operator DESFA’s LNG terminal on the islet Revythoussa just off Athens will be discussed between authorities and market players at a one-day conference planned by RAE, the Regulatory Authority for Energy, for this Thursday.
A latest proposal delivered by DESFA to RAE as part of consultation will serve as the basis of the discussion.
The new slot-reservation formula being worked on for the Revythoussa terminal will aim to maximize LNG shipments to the facility while also restricting time slots registrations made by traders purely for the sake of protecting gas market shares.
Power utility PPC and Motor Oil were both left off the Revythoussa facility’s unloading plan for 2020 after failing to secure slots amid conditions of heightened demand.
Authorities want to avoid a repeat of such a situation. PPC and Motor Oil had used the LNG terminal a year earlier.
Participants at this Thursday’s event will be offered the opportunity to present observations before Revythoussa rules are revised and implemented for next winter.
The event should offer LNG importers a clearer indication of the terminal’s new rules before ordering plans for 2021 are pursued. As has been the case this year, LNG demand is also expected to be elevated in 2021.
Gas grid operator DESFA aims to significantly revise slot reservation rules for its LNG terminal on the islet Revythoussa, just off Athens, the operator’s objective being to prevent reservations of expediency made by traders purely interested in protecting their market shares by fending off other users from the facility.
A related proposal of new regulations, already forwarded by DESFA to RAE, the Regulatory Authority for Energy, will instead aim to support use of the LNG facility for actual market needs.
RAE will need to stage a public consultation procedure before the plan is finalized. DESFA hopes it will be ready and implemented by summer, giving companies enough time to assess the new rules for the LNG terminal before they make business plans for 2021.
Recent congestion problems at the Revythoussa LNG terminal left a number of companies without slots for 2020.
Slot reservation applications submitted by companies last year for 2020 represented a total capacity three to four times the size of Greece’s overall annual gas consumption.
Under the new rules, slot reservations are expected to be legally binding, committing applicants to all related costs.
Lawmakers behind the facility’s existing set of rules, shaped nearly a decade ago, viewed LNG as a supplementary fuel, but it has taken on a far more significant role in the Greek energy market over the past few years.