Market interest for further development of European gas infrastructure appears to be weakening, raising concerns about the success of forthcoming trans-Balkan market tests aimed at increasing regional network capacity, sources have underlined.

Although the level of interest for further development of gas infrastructure in Greece and the wider region was considerable in non-binding phases of market tests, potential users are now holding back as the procedure’s binding phases approach.

This essentially means that market players are avoiding making long-term commitments, which is necessary in order for the network expansion and upgrade plans to proceed.

Gas-order cancellations from Greece to markets further north are being recorded, which, if continued, will cast doubts over gas network expansion plans, or even make them unnecessary, sources told energypress.

A similar trend has taken hold at Greek gas grid operator DESFA’s LNG terminal on the islet Revythoussa, just off Athens, as market players are cancelling LNG shipments because they have nowhere to channel gas quantities.

Though there is still plenty of time ahead before binding bids are submitted to trans-Balkan market tests, whose results will offer a clear-cut picture of the situation, the level of interest being recorded by operators preparing project proposals is well below that expressed in non-binding market tests. The Greek-Bulgarian IGB gas pipeline, now being gauged for a capacity boost, is one such example.

Gas consumption levels are on a downward trajectory and gas storage facilities in the EU are at high levels for this time of the year, averaging 68.61 percent full.

It is still too early to draw definite conclusions, but latest data is showing a change of scene. It remains to be seen how this shift could influence the investment plans of operators.