PPC expects major LNG tender turnout for 2.7 million MWh

Gas suppliers are expected to turn up in numbers for a power utility PPC tender expiring today with offers to provide three LNG shipments needed by the utility between March and May. PPC plans to purchase a total of 2.66 million MWh through this tender.

Between nine and ten gas suppliers, including major Greek and foreign LNG players, will submit offers, PPC has been informed, according to energypress sources.

Besides leading Greek gas traders, the procedure is expected to attract companies such as Rosneft, Eni Trading, Gunvor, Glencore, Shell, Cheniere and Tellurian.

All participants were required to sign Master Sale Agreements, committing them to their offers without any revisions.

PPC wants a first LNG shipment of 900,000 MWh on March 24, a second delivery of 815,000 MWh on April 21 and a third of 950,000 MWh on May 20.

Today’s tender confirms a change of strategy by PPC, searching markets around the world, from Asia to Qatar and the USA to Russia, for low-priced LNG.

The continual drop in LNG prices promises major cost savings for a company the size of PPC, requiring 1.35 bcm per year.


Upgraded LNG terminal set for launch amid US interest

A third storage tank added to an LNG terminal at Revythoussa, an islet close to Athens, is set for its commercial launch between late October and early November, slightly behind schedule.

The new tank, which promises to increase the facility’s overall capacity to 225,000 cubic meters, almost double its previous size, is currently undergoing test runs.

The facility’s capacity upgrade represents a pivotal development for the LNG terminal, a key asset belonging to DESFA, the natural gas grid operator, whose 66 percent is being privatized. A consortium comprised of Italy’s Snam, Spain’s Enagás Internacional and Belgium’s Fluxys has emerged as the winning bidder with a 535 million-euro offer.

DESFA is already engaged in talks with Greek and foreign firms interested in utilizing the upgraded facility and reserving capacities. They include two US firms, Cheniere and Tellurian, amid initiatives being taken for American gas imports into Greece. Cheniere and Tellurian have enquired about usage fees, capacities, technical details and port capabilities.

All firms interested in utilizing the upgraded LNG terminal at Revythoussa have made clear they are eyeing both the Greek market and the wider region to the north.


Tellurian promises to undercut competition on LNG prices

American LNG companies, including Shell, ExxonMobil, Tellurian and Cheniere presented their plans for the European market at a recent industry event in Budapest, during which Tellurian promised to undercut competition on LNG prices.

Tellurian and Cheniere are likely to take part in an international tender announced by DEPA, the Public Gas Corporation, for LNG shipments to the Greek market between 2018 and 2020.

LNG demand has increased by 12 percent over the past year, according to Tellurian deputy chief Charif Souki, who noted that lower price levels over the past two years had a good side as they helped the sector’s development.

Souki explained that, besides development of an LNG production terminal in Louisiana, a project expected to commence next year, Tellurian is striving to capitalize on lower production costs to offer more competitive LNG prices.

Houston-based Tellurian recently reached a deal to buy gassy Haynesville Shale acreage near its planned natural gas export facility in Louisiana. The company plans to develop a pipeline link from the Haynesville field to the export facility and eliminate transportation costs.

According to Souki, this development will enable Tellurian to offer LNG at a price level 3 dollars lower than the Cheniere rate.

Just weeks ago, Tellurian was identified as a previously unnamed US firm interested in entering a consortium to develop a floating LNG terminal (FSRU) in Alexandroupoli, northeastern Greece.

Tellurian named as US firm considering Alexandroupoli FSRU involvement

Tellurian Energy has been identified as the previously unnamed US firm interested in entering a consortium to develop a floating LNG terminal (FSRU) in Alexandroupoli, northeastern Greece, energypress sources have informed.

Last week, Greece’s energy minister Giorgos Stathakis disclosed that a US firm, which he did not name, and BEH (Bulgarian Energy Holdings) were both negotiating their possible involment in the LNG project.

The Alexandroupoli project plan was initiated by Gastrade, a member of the Copelouzos group, before Gaslog, an international LNG carrier operator, and, most recently, DEPA, the Public Gas Corporation, also joined in.

The newly formed Tellurian Energy, founded by experienced officials, including from the ranks of Cheniere Energy, the biggest exporter of American natural gas, is now laying the groundwork for a dynamic entry into the global LNG market.

Tellurian Energy is headed by Charif Souki, who, during his previous tenure at Cheniere Energy, had represented the company in talks for that firm’s entry into the Alexandroupoli LNG venture.

Amos Hochstein, until recently a former US Special Envoy and Coordinator for International Energy Affairs, is a key member of the administration at Tellurian Energy, which he joined earlier this year.

Tellurian Energy is planning to develop an export and LNG production terminal in Louisiana. Its construction is expected to begin next year while the facility is planned to start operating in 2022.

This terminal is budgeted at between 13 and 16 billion US dollars while the development of pipeline infrastructure to link the facility with natural gas fields is budgeted at a further 1.6 to 2 billion US dollars.