LNG

A cooperation agreement has been signed between key natural gas infrastructure owners from Greece, the Balkans and Central Europe including Gastrade, developer of the Alexandroupolis floating LNG import terminal for Greece and the Balkans.

Registro Italiano Navale (RINA), the Italian maritime classification society, and the Italian Asprofos oil and gas design consultancy, have been awarded a contract to help manage the deployment of a floating LNG terminal being developed in eastern Greece to supply the Balkans region.

RINA, based in the port of Genoa, and Greek consultancy Asprofos, have secured a contract to provide project management consultancy (PMC) services for the Alexandroupolis Independent Natural Gas System (INGS) venture, controlled by the Greek Company Gastrade SA.

Main shareholders in Alexandroupolis FLNG project include Gastrade Chairwoman Elmina Copelouzou, Greek shipping company GasLog, Public Gas Corporation of Greece (DEPA) and the Bulgarian gas company Bulgartransgaz.

The project is aimed at increasing security and diversification of gas supplies in the whole region of Southeast Europe.

It will consist of a permanently moored floating storage and regasification unit (FSRU) and a pipeline system of 28 kilometres connecting the floating unit to the Greek National Natural Gas Transmission System (NNGTS).

The FSRU will be stationed in the north-eastern part of the Aegean Sea and about 17.6km from the costal Greek town of Alexandroupolis.

Vessel capacity

The GasLog vessel will have a storage capacity of 153,500 cubic metres, a nominal gas send out rate of 625,000 cubic metres per hour and a peak gas send-out rate of up to 944,000 m³ per hour.

A statement noted that the Alexandroupolis project is being financed through the joint venture’s own resources with co-financing from public funds, the National Bank of Greece and shareholder equity.

Public funds will be provided through the Greek Public Investment Programme, partly through national participation and partly through the European Regional Development Fund (ERDF).

“This terminal is a fast-track project, with the FSRU scheduled to be online by the end of 2023,” said the contract winners.

“RINA and Asprofos will make sure that the contractual requirements of the project in terms of expected performance, quality, safety and planning are met,” they added.

“As well as supporting the owner on technical and managerial planning and oversight the two partners will act as an interface, through a multidisciplinary team of experts covering the different needs of the project,” they stated.

RINA view

Leonardo Brunori, Executive Vice President Energy at RINA, said the society was pleased to be involved in a project crucial to the security of European energy supplies.

“Recent events have highlighted the danger of relying on a single country for our energy needs. RINA has a long and proud track record of delivering FSRU and LNG projects globally having worked on over 200 in the last 15 years,” Brunori noted.

“We look forward to working together with Asprofos to deliver this strategically important terminal enabling Europe to further diversify access to energy,” he added.

Dionysios Belekoukias, Managing Director at Asprofos, said his firm was glad to be working with RINA on such an important project.

“We were awarded the contract because of our combined strong technical competencies. Over the last 35 years Asprofos has gained extensive experience in the natural gas sector having been involved in all phases of the majority of the National Natural Gas System of Greece, including the LNG Terminal in Revithoussa,” explained Belekoukias.

“We have also been actively involved in most of the natural gas projects which have been implemented or are under development in Greece such as Trans-Adriatic Pipeline (TAP), the IGI Poseidon Pipeline, the East Med Pipeline, covering engineering, environmental, permitting, project management, construction management and supervision services,” he added.

Greece, the leading nation in liquefied natural gas shipping, has held a ceremony attended by the Greek and Bulgarian prime ministers marking the advancement of the Alexandroupolis floating storage and regasification unit (FSRU) and revealing that a second FSRU was planned.

Gastrade SA, the Greek company developing an offshore LNG import terminal to serve eastern Greece and the Balkan nations, said a positive final investment decision has been taken to proceed with the joint venture.

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.

Greece’s Copelouzos Group has signed contracts for the implementation of a gas-fired combined-cycle power plant planned for the eastern Greek port of Alexandroupolis where an offshore LNG import terminal is planned.

Copelouzos said the contracts were for the supply and the long-term maintenance of the main equipment for the 840-megawatts facility being developed along with Greece’s Damco Energy SA and General Electric of the US.

The floating LNG terminal is a separate project from the onshore power plant and is being developed by Greek company Gastrade.

The Alexandroupolis LNG floating storage and regasification unit will have storage capacity of 170,000 cubic metres and regasification capacity of at least 5.5 billion cubic metres of natural gas per annum.

The FSRU will be moored in an offshore area about 17.6 kilometres southwest of the port of Alexandroupolis.

The floating unit will be connected to the Greek National Natural Gas Transmission grid through a pipeline system of a total length of 28km.

Copelouzos said that for its power plant project the company subsidiary Ilektroparagogi Alexandroupolis SA will be responsible for the implementation of the investment and construction will start before the end of 2021 and be completed by the spring of 2024.

Copelouzos added that the building of the gas-fired plant would strengthen the local economy as well as when operation start.

“During the construction 600 people are going to be employed, while it is estimated that 90 permanent job positions will be created during the whole lifetime of the project,” explained Copelouzos.

“In addition, and in conjunction the other projects of the Copelouzos Group, the unit will make the area of Alexandroupolis an energy hub, a fact that will attract further investments and result in economic growth and prosperity of the greater area,” it stated.

Oct 1 (LNGJ) - Russian pipeline natural gas supplier to Western Europe, Gazprom, has celebrated the 25th anniversary of its supply contract with European Union nation Greece, which is currently planning a floating LNG import project offshore the port of Alexandroupolis and has imported cargoes since 2000 to the existing onshore terminal at Revithoussa, west of Athens.

   “Over the past quarter of a century, Gazprom has exported upwards of 54 billion cubic metres of gas to this country and the annual amount of supplies has grown by more than 15 times,” said Gazprom. “All these years, the cooperation has relied on a long-term contract with the Greek operator DEPA. The contract, which was signed in 1988, is still in effect,” it added. “Gas from Russia is delivered via the TurkStream gas pipeline and the national gas transmission system of Bulgaria,” the Russians noted.

The European Commission has approved EU funding of the new floating liquefied natural gas import terminal for Greece and the Balkans being developed offshore the port of Alexandroupolis by Greek company Gastrade.

The project using a floating storage and regasification unit (FSRU) will have an overall delivery capacity of around 4 million tonnes per annum of LNG.

The subsea and onshore sections of the gas transmission pipeline will transmit LNG from the floating unit to the Greek natural gas network and onwards to third countries in the Balkans.

“The EU State aid will amount to €166.7 million ($200M) as the FLNG project contributes to the security and diversification of energy supplies in Greece and, more generally, in the region of Southeast Europe, without unduly distorting competition,” said the Commission statement.

Executive Vice-President Margrethe Vestager, in charge of EU competition policy, stated that the new LNG terminal in Alexandroupolis would improve regional gas supply and infrastructure.

“This will contribute to achievement of the EU's goals in terms of security and diversification of energy supply,” added Vestager.

“The Greek support measure limits the aid to what is necessary to make the project happen and sufficient safeguards will be in place to ensure that potential competition distortions are minimised,” declared the Commissioner

Greece had notified the Commission of its plans to support the construction of the Alexandroupolis terminal, also consisting of offshore installations such as a mooring system and risers as well as subsea and onshore gas transmission pipelines.

“Given its strategic importance for the diversification of natural gas supplies into the Southeast European region, the LNG terminal in Alexandroupolis has been included in the list of European Projects of Common Interest in the energy sector,” said the Commission.

“The terminal is expected to improve security of supply not only for Greece, but also for Bulgaria and for the wider European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria,” it added.

The project will be financed by the Greek state using European Structural and Investment Funds (ESIF), notably funds directly controlled and managed by Greece under the 2014-2020 partnership agreement for the development.

“The beneficiary of the aid is Gastrade SA, a company in which the Greek gas incumbent (DEPA) and the Bulgarian gas Transmission System Operator (Bulgartransgaz EAD) hold a participation,” it added.

Greek company Gastrade, the lead developer of a joint venture floating LNG terminal offshore Greece’s northeast port of Alexandroupolis to serve the Balkans, has signed accords with two utilities in North Macedonia, a part of the former Yugoslavia until 1991 when it became an independent state.

The liquefied natural gas hub and terminal project planned by Greek company Gastrade for the port of Alexandroupolis to serve the Balkans has revised its invitation for expressions of interest as the delivery of the floating storage and regasification unit will take six months longer than originally scheduled.