LNG terminal funding

Under EU State aid rules, the European Commission has approved a €166.7m Greek support measure for the construction of a new LNG terminal in Alexandroupolis, Greece, that will be operated by Gastrade.

European Commission executive vice-president, Margrethe Vestager, in charge of competition policy, said: “The new LNG terminal in Alexandroupolis will improve gas supply and infrastructure not only in Greece, but in the whole South Eastern European region. This will contribute to achievement of the EU’s goals in terms of security and diversification of energy supply. 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.”

The Alexandroupolis Independent Natural Gas System (INGS) project, currently under construction, will comprise a Floating Storage Regasification Unit (FSRU) for the reception, storage and regasification of LNG, as well as a subsea and an onshore gas transmission pipeline which will connect the FSRU to the National Natural Gas System of Greece (NNGS).

The FSRU will be permanently anchored at a fixed location approximately 17.6km SW from the Port of Alexandroupolis in Northern Greece. The FSRU will have an overall delivery capacity 5.5bn cubic meters/bcm per year.

Greek Authorities have confirmed that the LNG terminal will be suitable to use for hydrogen.

The project will be financed by the Greek State using European Structural and Investment Funds (ESIF). The Commission found that the aid is appropriate and necessary, as the project would not be carried out without the public support.