Last Monday (24/8) Greece took one more step towards implementation of the Alexandroupoli FSRU terminal, a major gas importation project which is at an advanced planning stage. In a ceremony attended by Greece's Prime Minister Kyriakos Mitsotakis and his Bulgarian counterpart, Boyko Borisov, a shareholders agreement was signed for the participation of state controlled Bulgartransgaz in Gastrade SA, the company which originated the project and which will be in charge for its operationLast Monday (24/8) Greece took one more step towards implementation of the Alexandroupoli FSRU terminal, a major gas importation project which is at an advanced planning stage. In a ceremony attended by Greece's Prime Minister Kyriakos Mitsotakis and his Bulgarian counterpart, Boyko Borisov, a shareholders agreement was signed for the participation of state controlled Bulgartransgaz in Gastrade SA, the company which originated the project and which will be in charge for its operation.Other shareholders include Gaslog,a well known international LNG vessel operator, Greece' s Public Gas Corporation (DEPA) and the Copelouzos group which initiated the whole project.
Gastrade is currently developing the LNG floating storage and regasification unit (FSRU) offshore the port city of Alexandroupolis in northern Greece,which will be a new, independent energy gateway for the markets of Southeastern and Central Europe. The Station will be located 17,6 km southwest of Alexandroupolis and will have an LNG storage capacity of 170,000 cubic meters and a natural gas supply capacity that will exceed 5,5 billion cubic meters (bcm) per year. The floating unit will be connected to the National Natural Gas System of Greece via a 28 km long largely underwater pipeline, through which the regasified LNG will be transmitted to the markets of Greece,Bulgaria and the wider region, from Romania,Serbia and North Macedonia to Hungary,Moldova and Ukraine.
The Alexandroupoli FSRU is an approved European Project of Common Interest (PCI-EU Regulation 347/2013), a priority project of the European Union,which will strengthen security of energy supply,contribute to the diversification of supply sources,enhance competition and support the establishment of a Natural Gas Trading Hub in the wider region of SE Europe,bearing obvious benefits for all final energy consumers. The project supports and augments the Greece-Bulgaria interconnector (IGB) involving Bulgarian Energy Holding, the parent company of Bulgartransgaz, and DEPA, through which natural gas will be channeled from the FSRU terminal in Alexandroupoli to Bulgaria and beyond.
The participation of Bulgartransgaz is considered key for the success of the project as it will enhance gas flows through Bulgaria to the rest of SE and Central European countries. Following the final investment decision(FID) expected before the end of the year, construction of the project will commence with anticipated start up date early in 2023.
IENE which foresees much higher LNG use in SEE over the next five years, has already carried out a major study for the role and prospects of LNG in the region. A study which was largely supported by Gastrade ( the actual study can be freely downloaded from www.iene.eu) and is now being revised,as parts of it will be included in the Institute's forthcoming flagship report, the "SEE Energy Outlook 2020/2021" scheduled for publication in March 2021.
