LNG

Operations at the Revithoussa LNG regasification and import terminal in Greece have resumed after a planned shutdown to upgrade the plant with a new high-pressure BOG compressor. According to Greece’s National Gas System Operator (DESFA), the upgrade will eliminate the need for wasteful gas flaring during normal operations.

Greek liquefied natural gas project leader Gastrade has said that delays were being experienced for the start-up of Greece’s Alexandroupolis floating LNG import hub to supply Balkan gas grids.

Blue Grid, an Athens-based company leading the development of the LNG and alternative fuels market in southeast Europe, has joined the Molgas group of companies after receiving a significant investment.

Blue Grid, incorporated in 2017, is developing alternative fuels supply chains delivering environmental, economic, and operational benefits to a wide range of customers.

The company’s current activity focuses on supplying LNG as a fuel to three main customer segments in industry, road transport and for marine bunkering.

Blue Grid said its broader scope includes LNG, renewable methane and bioLNG.

Molgas is a leading downstream supplier of LNG in Europe, providing volumes to over 200 industrial customers, 34 LNG fuelling stations, as well as a growing number of marine customers.

The company is active in eight countries in Europe, including Norway through its fully owned subsidiary Gasnor, a company acquired from Shell in 2021.

Molgas, which has its headquarters in Madrid, is owned by funds managed by InfraVia Capital Partners, a Paris-based private equity firm specializing in infrastructure investments.

As a new part of Molgas, Blue Grid said it would focus on accelerating growth in LNG and bioLNG supply in the broader region of southeast Europe and the East Mediterranean.

“The Molgas investment comes at an opportune time, considering the imminent commissioning of the Revithoussa truck-loading terminal, anticipated for the summer of 2022, which will allow reliable and competitive supply of LNG to final customers in the SE European region,” said Blue Grid.

The Hellenic Gas Transmission System Operator (DESFA) is the owner of the Revithoussa LNG terminal.

DESFA is also constructing a small-scale LNG reloading jetty on Revithoussa island and it is expected to be operational by the end of 2023.

Piraeus bunkering

Blue Grid said it aimed to be one of the first physical suppliers of LNG to marine customers in the Port of Piraeus, and to this end, is planning to have an LNG bunkering vessel available in alignment with the commissioning of the jetty.

“We are proud to have Molgas onboard, and view this investment as a vote of confidence in the work that we have been doing in the region over the past years” said Sofoklis Papanikolaou, founder and Chief Executive of Blue Grid.

Fernando Sarasola, the Chief Executive of Molgas, said that southeast European was the next frontier for small-scale LNG and alternative fuels.

“Blue Grid is perfectly positioned to capture this market. We are very excited to be joining our forces and I am confident that together we will be bringing a lot of value to a wide range of customers,” added Sarasola.

Italian natural gas network company and LNG importer SNAM reported a more than 8 percent increase in net profits as more natural gas was used in Italy and it benefited from foreign investments in the Trans-Adriatic Pipeline bringing gas from Azerbaijan and its stake in the Abu Dhabi’s pipelines system in the United Arab Emirates.

Italian natural gas network operator Snam, one of Europe’s leading energy infrastructure companies, said the volumes of gas injected into Italy’s network in the first half totalled 35.71 billion cubic metres, down 10.3 percent from the same period in 2019 because of the Covid-19 lockdown.

Enagas, the Spanish natural gas network owner and operator of LNG terminals, posted 2.3 percent higher nine-month net profits of 333.1 million euros ($371M) as demand for natural gas in Spain reached its highest level in 10 years.

Enagas, the Spanish natural gas network and LNG terminal owner, has entered the US energy infrastructure market by investing in Tallgrass Energy, whose assets include 11,000 kilometres of transmission pipelines.

The Spanish company said the transaction is part of its strategy to invest in core business assets in growth markets on an international basis alongside strategic partners.

Enagas, which already has investments in LNG import terminals on the American continent, at Altamira in Mexico and Quintero in Chile, has entered into an agreement with the equity funds, Blackstone of the US and GIC of Singapore, to invest $590 million for a 10.93 percent indirect ownership interest in Tallgrass Energy.

Tallgrass, based in Leawood in the Midwest state of Kansas, has assets including the Rockies Express Pipeline, one of the largest US pipelines that is being transformed into the nation’s northernmost bi-directional natural gas gathering system.

Enagas explained that its investment is in the holding company that owns 100 percent of TGE’s general partner, as well as 43.91 percent of the economic interests in TGE .

The investment is structured so that Blackstone retains a majority stake, GIC has a minority shareholding, as does Enagas with 24.90 percent of the holding company.

Following the closing of the transaction, Enagas has agreed to acquire an additional 3.52 percent of the holding company for around $83M, subject to completion of certain conditions. The Spanish company has also agreed to future investments of up to $300M in TGE.

“As an industrial partner, Enagas will have a seat on the company's Board of Directors, contributing its know-how in operating and developing energy infrastructure,” said Enagas.

Enagas has four domestic LNG import terminals around Spain at Barcelona in the northeast, Cartagena in the southeast, Huelva in the southwest and Gijon in the northwest.

It also owns a 50 percent stake in the facility serving the northwest city of Bilbao.

Other investments held by Enagas include its stake in Trans Adriatic Pipeline, part of Europe’s Southern Gas Corridor.

It is also part of a European gas grid group that acquired control of the Greek natural gas transmission operator DESFA.

“Enagas embarked on its internationalisation in 2011 as a part of an ongoing strategy with two main objectives, maintaining the maximum efficiency and security in the operation of the Spanish gas system, and to continue expanding as a company,” it said.

“This international expansion also helps drive the business of other Spanish industrial companies related to the energy sector,” added Enagas.

“This acquisition allows Enagas to unlock the value of its vast experience in developing and operating gas infrastructure and strengthen its position as industry leader and expert,” stated the company.

Wallace Henderson, Senior Managing Director in Blackstone Infrastructure Partners, said he was delighted Enagas had joined the investment consortium.

“With extensive midstream operations around the world, they bring valuable perspectives to Tallgrass that will benefit our investment and we look forward to their contributions,” added Henderson.

Enagas, the Spanish natural gas network owner and LNG terminals operator, reported firm profits and the 85 percent completion of Trans Adriatic Pipeline, part of Europe’s Southern Gas Corridor.

European liquefied natural gas terminal stakeholders and network operators in Spain, Italy and Belgium have won majority control of the Greek gas grid operator sold in a tender by the government privatization agency.

European LNG import terminal stakeholders in Spain and northwest Europe are part of two competing consortia who have placed final bids for a major stake being sold by the Greek government in natural gas grid operator DESFA.