Gastrade SA, the Greek company developing an offshore LNG import terminal to serve eastern Greece and the Balkan nations, has ratified an agreement with the Greek national gas grid operator DESFA taking a 20 percent stake in the project.
The final share transfer agreement was signed in Athens by the founding shareholder and Gastrade Board Chairwoman Elmina Copelouzou and the Chief Executive of DESFA, Maria Rita Galli.
The floating LNG terminal off the port city of Alexandroupolis is expected to be operational by early 2023.
The progress on the project came after the recent approval by the European Commission, based on the European Union merger regulations, for the acquisition of joint control of Gastrade and the Bulgarian gas grid company Bulgartransgaz.
“The construction of the Alexandroupolis terminal will actively contribute to the country's energy security, liquidity and efficiency and will strengthen Greece's strategic role in Southeast Europe, offering opportunities for new natural gas exports to the region,” said a joint statement.
“This is a crucial European project of common interest, a priority for the EU as it strengthens security and diversifies the sources and routes of energy supply,” the statement explained
“In addition, the project promotes competition among gas suppliers and supports the creation of a transaction hub in the wider region of Southeast Europe, leading to lower prices that will benefit all end-users,” it added.
Balkan benefits
The FSRU will be connected to the National Natural Gas Transmission System of Greece with a 28-kilometres pipeline, through which the regasified LNG will be offered to the markets of Greece, Bulgaria and the wider region, including Romania, Serbia and Νorth Macedonia, as well as Moldova and Ukraine.
“Another important step for the emergence of Greece and especially of Alexandroupolis as an energy hub for the Balkans and Europe has been made,” declared Gastrade’s Copelouzou.
“We welcome DESFA to Gastrade, being convinced that with our full shareholder structure, the project in Alexandroupolis will play a leading role in the green transition of European networks, while strengthening the security of energy supply for the benefit of national economies and citizens,” she stated.
DESFA CEO Galli said that under the agreement the Greek national gas company had become a Gastrade shareholder.
“The project will contribute significantly to energy security and to the upgrading of Greece's role in regional energy developments,” stated Galli.
“DESFA's long experience in the management of the LNG terminal of Revithoussa makes it a valuable partner with valuable know-how,” she added.
The Gastrade-led project will be based on a floating storage and regasification unit (FSRU) with LNG storage capacity of 170,000 cubic metres and a natural gas supply capacity that will exceed 5.5 billion cubic metres per annum.
