Greece: Joint construction of gas plant by Motor Oil and GEK Terna

, SEE Energy News

In order to jointly construct operate the new combined-cycle power plant in Komotini, a project worth 375 million euros, Greek oil refiner Motor Oil and construction company GEK Terna have signed an agreement.

The two companies will own equal 50 % shares in the future 877 MW gas-fired power plant. They plan to start the construction of the plant within 2021, so that it can be put into operation in early 2024. The participation of Motor Oil in the project GEK Terna has been planning since 2019, proceeding with its licensing, signals the more active involvement of the Vardinogiannis group in the electricity market in the context of the oil giant’s energy transition – which is being accelerated due to the increase in the cost of carbon dioxide pollutants.

The gas-fired power plant in Komotini will be the second private plant in Greece after the plant developed by Mytilineos Group, which is already under construction and will start operating in May 2021.

Motor Oil is present in the retail electricity market through electricity supplier NRG. It also develops a floating LNG terminal in Korinthos (Dioryga Gas project), which could be used to supply gas to the future Komotini plant.