LNG

July 17 (LNGJ) - The “LNG Endurance” with 170,500 cubic metres capacity was scheduled to deliver a cargo on July 19 to the Greek import terminal at Revithoussa as European natural gas prices were steady at around $10.17 per million British thermal units. The vessel had also called at the French Channel terminal at Dunkirk and departed on July 10, according to shipping data.

The Greek Government agency, Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), said seismic surveys had been successfully completed in the offshore areas to the West and Southwest of the Mediterranean island of Crete in the prolific East Med Basin where pipeline gas and LNG feed-gas projects are being developed.

HEREMA said the surveys were carried out by the leading global seismic acquisition and processing company, Petroleum Geo-Services PGS, headquartered in Norway.

Analysts said that this was the most intensive search launched by the Greeks in their Exclusive Economic Zone for natural gas discoveries such as those made by other nations in the region like Egypt and Israel. Lebanon has also launched an exploration campaign and Cyprus already has the Aphrodite gas field in its waters.

The Greek surveys were carried out on behalf of the exploration and production licence holders for the area West and South of Crete, US major ExxonMobil Corp. and Helleniq Energy, a leading refining, supply and trading company in Southeast Europe.

“From their initiation on November 10th 2022, up until their completion, subsurface imaging geophysical surveys for the exploration of potential natural gas deposits were conducted at an intensive pace, far exceeding the minimum contractual obligations,” said HEREMA.

Huge area covered

“A total of 12,278 kilometres of seismic data were collected against the minimum contractual obligation of 6,500km for the two blocks combined,” the state agency added.

“The surveys increased the density of the seismic coverage in the areas within the West and Southwest of Crete concessions, offering for the first time seismic imaging and information over unexplored areas within the Greek EEZ,” declared HEREMA.

Participants emphasized that the surveys lasted a little over three months and adhered to the strictest standards and safety measures for the protection of the environment and marine life.

“As the competent authority that manages the concession rights on behalf of the Greek State, we are deeply satisfied with our excellent cooperation with our investors, who increased their investments and completed the exploration program at a rapid pace,” said HEREMA’s Chief Executive Aristofanis Stefatos.

“This will be followed by data processing, interpretation, and evaluation in order to make decisions about entering the next exploration phase,” added Stefatos.

HEREMA’s Chairman Rikard Scoufias welcomed the completion of the surveys that covered large areas of East Med waters in the Greek economic zone for the first time.

“This is a Greek achievement of global magnitude and comes at a very important moment for Europe,” said Scoufias.

Hopeful

“We have an unprecedented opportunity to monetize Greece’s natural gas resources in a way that can not only bring economic and strategic benefits but also support the bigger objective to accelerate the transition,” added Scoufias.

“Our focus will now be on further building the resources and collaborations, at all levels, to ensure we maintain this historic momentum,” stated the HEREMA Chairman.

In less than two years Greece has now conducted seismic surveys in five areas as opposed to just two areas from 2011 to 2020.

“We need to discover if a new potential source of wealth exists in the subsurface of our country that can be monetized for the benefit of Greek society,” commented Greece’s Minister of Environment and Energy, Kostas Skrekas on the HEREMA-led survey campaign.

A Greek joint venture has held a ceremony for the construction of a gas-fired power plant that will help underpin the LNG floating storage and regasification (FSRU) project at the eastern Greek port of Alexandroupolis.

The Alexandroupolis Power Plant is being built by a consortium of Greece’s three major energy groups, PPC, DEPA (the Public Gas Corporation of Greece ) and Damco Energy, a unit of the Copelouzos Group.

The launch ceremony for the power project was attended by Greek Prime Minister Kyriakos Mitsotakis as well as others involved in supporting the Greek and Balkans region project, including representatives of the Bulgarian and US governments.

The power plant will be directly connected to the FSRU import project led by Greek company Gastrade and with the vessel being provided by one of the world’s leading LNG carrier companies GasLog.

“Alexandroupolis is turning into an energy junction of electricity and natural gas networks, with the potential of supplying the domestic market and neighbouring countries in Southeast Europe,” said a statement.

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

Aegean location

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

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

The new power plant is expected to be operational by the end of 2025. It will be a combined-cycle facility with installed capacity of 840 megawatts, which is approximately the net capacity of three coal-fired plants currently being decommissioned.

“We are here to welcome a project that is changing the energy landscape and Greece is now shielded,” said Christos Copelouzos, Chief Executive of the Copelouzos Group.

“At the same time, a new energy pillar is being created for Southeast Europe, as our country will be able to export electricity to the neighbouring Balkan states, Bulgaria, North Macedonia and even Serbia,” he added.

“As a Group, we chose the location of the plant here in Alexandroupolis. After all, for years we have been paying special attention to the wider Evros region, fully acknowledging its important geostrategic position,” explained the CEO.

“We are creating infrastructure, which, together with other projects under implementation in the region, such as the FSRU Alexandroupolis, will generate opportunities for the development of the local economy and many new and permanent jobs,” he stated.

“With confidence in Greece and its people, we at Copelouzos Group will continue to develop projects of ‘national identity’. These include investments that are being thoroughly prepared, such as the electrical interconnection between Greece and Egypt and offshore wind farms,” he concluded.

Leading European Union LNG import terminal owner and grid operator Enagás has signed an agreement in Madrid with Albania on helping the Balkan nation’s natural gas company AlbGaz develop its markets and infrastructure.

The Prime Minister of Albania Edi Rama and Spain's Energy Minister Teresa Ribera attended the signing of the Enagás-AlbGaz agreement along with the Albanian Minister of Energy and Infrastructure Belinda Balluku.

The Balkan region is one of the most vulnerable in terms of the lack of energy diversity and security and the signing of this accord is seen as another step towards helping Albania develop its economy.

AlbGaz is the Albanian Transmission System Operator (TSO) and is working to modernize the gas system in the country.

The actual gas agreement was signed by the Chief Executive of Enagás Arturo Gonzalo and his AlbGaz counterpart Arber Avrami to collaborate in the development of gas infrastructure in Albania.

“This agreement lays the foundations to contribute to the security of energy supply, not only in Albania but also at the regional level, and to the decarbonization of its economy, displacing polluting fuels and also promoting renewable gases,” said a statement.

Partnership

Arturo Gonzalo pointed out that the agreement opened up relevant avenues for future collaboration between the Spanish and Albanian gas industries.

“Cooperation between European TSOs is key in the current context. The accord is aligned with the purpose of Enagás to contribute to security of supply and decarbonisation in Europe,” added Gonzalo.

Enagás said it was already cooperating with Albania through is 16 percent shareholding of the Trans-Adriatic Pipeline (TAP) which connects Turkey with Italy through Greece and Albania.

AlbGaz CEO Avrami said his nation viewed Enagás as valuable partner.

“There are possibilities for cooperation in a series of projects that include the Vlora LNG import terminal in Albania and the Dumrea Underground Storage as well as small-scale LNG distribution,” added Avrami.

“ I am convinced that this cooperation will be an additional guarantee for the realization of these ambitious projects and the vision that foresees the transformation of Albania into a regional energy centre., he stated.

A proposal was made in July 2021 for Excelerate Energy of the US and US major ExxonMobil to start a feasibility study on developing an LNG import terminal at the Port of Vlora in southern Albania.

Under that accord, Excelerate would conduct a study to explore the potential of an integrated LNG-for-power solution for the Albanians.

This would include developing an LNG import terminal, converting or expanding the existing Vlora thermal power plant and establishing small-scale LNG distribution in Albania and for the surrounding Balkans region.

Two Balkan natural gas and utility companies, Albania's Albgaz and Bulgaria's Overgas, have signed an accord to cooperate on projects to diversify supplies in the region at an event attended by former US Secretary of State Mike Pompeo.

Pompeo attended as the Chairman of US company Linden Energy’s Advisory Board. Linden has agreed to take a 50 percent stake in Overgas subject to regulatory approval.

The accord outlined the parameters of the planned Albanian-Bulgarian cooperation to secure natural gas from non-Russian sources via commercially viable projects driven by the private sector.

“We are excited to begin working with a fellow regional gas company such as Albgaz. The signing of this agreement is a first step in regional cooperation to diversify gas supply to the Balkans,” said Svetoslav Ivanov, Executive Director of Overgas.

The agreement was signed in the Albanian capital Tirana and representatives of each company attended along with Albanian Prime Minister Edi Rama.

Linden Energy was represented by Stephen Payne, the company's President and company founder and by former Secretary of State Pompeo.

The US company in July 2021 signed an agreement to acquire 50 percent of Overgas, the independent Bulgarian gas trading company and Bulgaria’s largest privately-owned gas firm.

Linden Energy is focusing on energy project development and was founded in 2013 by Payne.

LNG record

“Payne has a history in the international energy sector as he has negotiated over 27 million tonnes per annum of LNG sales, was instrumental in the development of several large LNG export projects in the US and several major international pipelines,” said the statement on the signing event.

It noted that Linden has other projects under consideration in Eastern Europe and South Asia.

Linden Energy is additionally a 10 percent capacity holder in the Gas Interconnector Greece-Bulgaria (IGB) pipeline.

“As one of the only US companies involved in the Balkans gas trade, Linden Energy is excited to take this first step as part of Overgas in partnership with Albgaz,” stated Payne.

Secretary Pompeo said that at a time of great uncertainty in the European energy market he was proud to be a part of a team that is addressing this issue head-on.

“The Balkan region is one of the most vulnerable in terms of the lack of energy diversity and the signing of this accord is a strong step in the right direction,” Pompeo declared.

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.

GasLog, the Greek LNG shipping company, is expanding its fleet by ordering four newbuild 174,000 cubic metres-capacity for delivery in 2024 and 2025.

GasLog Ltd is ordering the vessels from South Korea shipyard Daewoo Shipbuilding and Marine Engineering.

The four newbuilds will have latest generation M-type Electronically Controlled, Gas Injection (MEGI) propulsion system.

GasLog completed a merger in June 2021 with BlackRock’s Global Energy and Power Infrastructure division and de-listed its common shares from the New York Stock Exchange.

The GasLog’s ownership structure has three main shareholders in both companies, parent GasLog Ltd and subsidiary GasLog Partners LP.

They are the Greek Livanos family with 55 percent, the Monaco-based Onassis Foundation with 12 percent and BlackRock’s Global Energy and Power infrastructure fund (GEPIF), holder of 45 percent of the equity.

GasLog Ltd, whose Chairman remains Peter G. Livanos, has an LNG fleet comprising 20 vessels, 12 dual-fuel, seven tri-fuel, diesel electric (TFDE) and one steam-turbine carrier.

GasLog Ltd subsidiary, GasLog Partners LP and whose Chief Executive since August 2021 has been Paolo Enoizi, owns 15 LNG carriers, including 10 tri-fuel-diesel-electric (TFDE) ships and five steam-turbine vessels.

GasLog Partners in November 2021 reported a third-quarter increase in revenues and profits as global demand gathered pace.

The partnership said income jumped 11 percent to $80.53M from $72.8M in the same quarter to the end of September in 2020.

At the end of October GasLog Partners said it completed the sale and lease-back of the “GasLog Shanghai”, with 155,000 cubic metres capacity, to China Development Bank Leasing.

GasLog noted that headline spot rates in the third quarter benefited from LNG demand growth from Asia as well as longer than average wait times at the Panama Canal.

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.

Sonatrach, the Algerian state energy company, was continuing a 10-day shutdown of the Skikda liquefied natural gas plant on the Mediterranean coast because of a technical issue, as the nation also continued to implement a curfew in 14 provinces to try and bring the Covid-19 pandemic under control.

Sonatrach said the closure of the Skikda facility came after the sudden failure of a gas turbine control mechanism.

Sonatrach is one of the main suppliers of LNG and pipeline natural gas to Europe.

It operates two LNG plants at Skikda and Arzew on the Mediterranean coast and via three pipelines to Spain and Italy.

Algerian gas supplies are carried from the Hassi R'Mel hub on the Medgaz pipeline via Beni Saf to Almeria in southern Spain and on the Maghreb-Europe Gas Pipeline from the Hassi R'mel field through Morocco to Cordoba in Spain.

Pipeline gas also goes to Italy through the Trans-Mediterranean Pipeline from Algeria via Tunisia to Sicily and then onwards to the mainland of Italy.

Algerian LNG exports have been falling in recent years and amounted to a combined 10.58 million tonnes per annum in 2020 from both the Skikda plant and the main Arzew facility, a decline of 13.5 percent.

Shipments from the North African country go to France, Italy, Turkey, Greece, Spain, the UK, India, Pakistan and several others.

The company said it was still carrying out repairs at Skikda on the affected equipment.

The LNG plant at Skikda has a capacity to produce 4 million tonnes per annum.

“A technical issue occurred on June 11 at the Skikda LNG complex and led to the shutdown of this complex,” said Sonatrach.

“As a safety precaution, Sonatrach has decided to conduct a thorough inspection of the plant,” it added.

So far in 2020, Algeria has exported less than 7MT of shipments, which is around 50 percent of its technical nameplate capacity.

Meanwhile, the oil and gas producing nation is taking more lockdown measures to control Covid-19 in 14 of its 58 provinces.

The partial lockdown measures in the affected areas are from midnight to 04:00 on the morning of the next day and were extended in 14 Algerian provinces for a period of 21 days from June 21 as part of the fight against the spread of Covid-19.

The measures were approved by President Abdelmadjid Tebboune and Prime Minister Abdelaziz Djerad following consultations with the state Scientific Committee.

The Covid-19 measures concern the following 14 provinces: Algiers, Laghouat, Batna, Bejaia, Blida, Tebessa, Tizi-Ouzou, Setif, Sidi Bel Abbes, Constantine, M'Sila, Ouargla, Oran and Boumerdes.

March 19 (LNGJ) - Shipping charter rates for LNG carriers in the spot market reached global parity levels as West Of Suez rates declined by $4,000 per week to average between $32,000 per day and $28,000 per day for vessels of 155,000-165,000 cubic metres capacity. In the East of Suez charter market average rates were at the same level after being unchanged from last week, according to various brokers. One-year charter rates for the most modern vessels increased to $49,000 per day.