Greece: DESFA might become a new stakeholder in Alexandroupoli LNG terminal project

, SEE Energy News

Greek gas transmission system operator DESFA could become a new stakeholder in the company established by the Copelouzosgroup for the development and operation of liquefied natural gas (LNG) terminal in Alexandroupoli.

Talks regarding DESFA’s entry in the project company have essentially concluded, with the official announcement expected by the end of September. DESFA’s interest to join the consortium for the Alexandroupoli LNG project, the first ever private-sector investment in such infrastructure in Greece, reflects the intention of the company’s new ownership and administration to broaden DESFA’s role from just a TSO to a major player in Greece’s gas market.

The Alexandroupoli LNG project, for which Gastrade has obtained a license in 2011, envisages the construction of LNG storage facility with the capacity of 170,000 cubic meters, which could supply 17 million cubic meters of gas per day to Greek gas network. With the construction of gas interconnection between Greece and Bulgaria, the investors are considering options to supply natural gas to the entire Balkan region. However, the project has been removed from the list of EU Projects of Common Interest (PCI) for 2017. Last October, Gastrade launched a market test for Alexandroupoli LNG terminal and the tender for the procurement of the Floating Regasification Storage Unit (FSRU) vessel. More than ten domestic and foreign companies have expressed interest in the tender for the procurement of vessel, as well as the terminal’s market test. The consortium for the construction of the terminal should comprise of Gastrade (40%), Gaslog (20%), Greek Public Gas Corporation DEPA (20%), now through DEPA Trade, and Bulgarian Energy Holding BEH (20%).