Alexandroupolis LNG Terminal begins commercial operations

Greece’s northeastern port city of Alexandroupolis is transforming into an energy gateway for Central and Southeast Europe with today’s launch of commercial operations of a floating storage and regasification unit (FSRU) – the new LNG terminal.

Joint venture Gastrade said its new Alexandroupolis LNG Terminal is one of the most important energy projects at the European, regional, national and local levels. The landmark investment was envisioned 15 years ago by Dimitris Copelouzos of the Copelouzos Group, it pointed out.

The project contributes to energy security and the diversification of sources and energy supply routes for Southeast and Central Europe, decisively upgrading the role and importance of Greece in the contemporary energy map of Europe, making it an energy gateway for more than nine countries, the firm added in an update.

PPC and DEPA will continue building an 840 MW gas power plant in Alexandroupolis after Copelouzos sells its 20% stake

The facility for liquefied natural gas (LNG) started its commercial operations today offshore Alexandroupolis after two and a half years of construction.

Greece’s Public Power Corp. (PPC) and its minority partner DEPA Supply (DEPA Commercial) are building an 840 MW gas power plant in the area. Copelouzos is selling its 20% stake to PPC. Alexandroupolis is a port city in the country’s northeast, near the border with Turkey.

From final investment decision to commencement of commercial operations

The project began to materialize when the final investment decision – FID – was taken on January 27, 2022, by Gastrade. The FSRU was built in Singapore. The vessel sailed from the Seatrium shipyard on November 26, 2023. It arrived in the waters of the Thracian Sea on December 17, where it moored in its permanent position.

The Alexandroupolis LNG Terminal also consists of a subsea and onshore natural gas pipeline. Through the National Natural Gas Transmission System it will deliver natural gas to Greece, Bulgaria, Romania, North Macedonia, Serbia, Moldova and Ukraine in the east, as well as Hungary and Slovakia in the west, Gastrade added.

The facility can regasify LNG to as much as 5.5 billion cubic meters per year.

Projects are underway for gas pipelines linking North Macedonia with Greece and Serbia.

“Our vision is to provide to the market a project that will operate in a way that is friendly to the society of Alexandroupolis, the environment and our customers, offering a stable and reliable supply option for accessing our entire region. We want to become a ‘benchmark of excellence’ infrastructure,” Managing Director of Gastrade Kostis Sifnaios wrote.

Five equal partners run Alexandroupolis LNG Terminal

Fourteen Greek and international companies are participating commercially. They committed almost all the capacity until at least 2030, the company said.

“The Alexandroupolis LNG Terminal is much more than a business project. It is a tangible proof of the possibilities we have in Greece to create European infrastructures that address the problems of our times, offering opportunities and prospects for a better and sustainable energy future,” founding shareholder Elmina Copelouzou stated.

GasLog is the facility’s operator

She and LNG carrier fleet owner and operator GasLog, DEPA Commercial, Bulgartransgaz and Greece’s National Natural Gas System Operator (DESFA) all control 20% each.

“GasLog is proud to have played a key role in the development of the project since the very beginning, the conversion of an LNG carrier to an FSRU, the delivery of the unit to Alexandroupolis and the successful commencement of operations of the Alexandroupolis terminal, contributing as shareholder and FSRU operator, while delivering on our commitment for providing reliable and innovative LNG solutions on a global scale,” said Chief Executive Officer of GasLog Paolo Enoizi.

Point of entry for gas from US, Qatar, Egypt…

The decision taken in 2020 by Bulgaria and Bulgartransgaz to become shareholders with a 20% stake in Gastrade proved to be strategic, according to Executive Director of Bulgartransgaz Kiril Ravnachki.

The facility ensures access to gas supplies from the United States, Qatar, Egypt and other countries, he added. “The growing role of LNG for the region and the availability of this new LNG storage and regasification capacity is of utmost importance for SEE countries aiming to diversify supplies and switch away from Russian gas. It will also improve liquidity and market integration in our region,” Ravnachki commented.

Milestone for Vertical Gas Corridor initiative, IGB expansion project

The start of commercial operations of the project marks the enhancement of the Vertical Gas Corridor initiative, Gastrade noted. It envisages connecting Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine. Pipelines would transport the fuel from two more directions other than Russia.

The new LNG import facility, alongside the Revithoussa LNG Terminal and coupled with DESFA’s investments to enhance the export capacity of the Greek gas grid, strengthens further the region’s energy infrastructure and interconnectivity, according to DESFA’s CEO Maria Rita Galli.

She also highlighted the role of the Trans Adriatic Pipeline (TAP), Interconnector Greece-Bulgaria (IGB) and the Vertical Gas Corridor.

Today’s launch enables the planned expansion of IGB to five billion cubic meters per year, from three billion.