Greece, Construction of a floating LNG terminal in Alexandroupoli has officially started

, SEE Energy News

The construction of a floating liquefied natural gas (LNG) terminal in Alexandroupoli in northern Greece has officially started.

The ceremony was attended by Greek and Bulgarian Prime Ministers Kyriakos Mitsotakis and Kiril Petkov, who said that the new facility would help create a new gas route for Europe and cut reliance on Russian gas at a crucial moment.

PM Mitsotakis said that the two countries are ready to assume a new crucial role in Europe’s new energy map, as recent blackmails by Moscow over natural gas supply make this cooperation not only necessary but urgent.

The new floating storage and regasification unit (FSRU), which will be anchored about 18 kilometers off Alexandroupoli port and carry gas to the shore via a 28 kilometers long pipeline, is expected to start operations at the end of 2023. It will be able to regasify 5.5 billion cubic meters of LNG annually and store 153,500 cubic meters.

Greece currently has one LNG terminal near Athens. With the new Alexandroupoli terminal and other projects in the pipeline, it could triple its regasification capacity by the end of 2023.

The consortium for the construction of the terminal comprises of Gastrade, controlled by Copelouzos Group, (20 %), Gaslog (20 %), Greek Public Gas Corporation DEPA (20 %), now through DEPA Trade, Greek natural gas transmission system operator DESFA (20 %) and Bulgarian Energy Holding BEH through Bulgartransgaz (20 %).

All five investors agreed to cede 2 % of their stakes each so that North Macedonia could enter the project with 10 % stake.