LNG

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.