Gastrade Launches a Market Test for the Alexandroupolis LNG Terminal

Gastrade launched on the 30th of October the 1st phase of the Market test for the Alexandroupolis LNG Terminal (“the Project”), in accordance with the “Guidelines for management and allocation of capacity on the Alexandroupolis Independent Natural Gas System (Alexandroupolis LNG Terminal) according to paragraph 6 of article 36 of Directive 2009/73/EC”. This is a non-binding, Expression of Interest Phase. Companies interested in seeking services and capacity in the terminal have 45 days to return an Expression of Interest notice.

The Project is being developed by the Greek utility company GASTRADE S.A. and comprises an offshore floating, storage and regasification unit (“FSRU”) for the reception, storage and re-gasification of LNG, which will be stationed offshore the town of Alexandroupolis in NE Greece, a mooring and a system of a subsea and onshore gas transmission pipelines, through which natural gas will be delivered to the Greek National Natural Gas Transmission System (“NNGTS”) and onwards to the final consumers in Greece, Bulgaria, Serbia, FYROM, Turkey, Romania all the way to Ukraine and Hungary.

The FSRU will have a nominal regasification and send-out capacity of 530 million standard cubic feet per day(“mmscfd”), equivalent to 600,000 normal cubic meters per day (5.5 bcm/year) and a peak technical regasification and send-out capacity of 800 mmscfd, equivalent to 950,000 normal cubic meters per day
(8.3 bcm/year). The LNG delivered and stored at the FSRU shall be regasified and transmitted to the downstream natural gas system at the flow rate requested by the Project users, meeting the specifications of the respective downstream natural gas system (quality, pressure, temperature, etc.). There is also the potential for a future tie-in to the Trans Adriatic Pipeline (“TAP”) gas transmission system.

For Bulgaria and markets adjacent and beyond Bulgaria, the Project will transmit natural gas through the Interconnector Greece-Bulgaria which is planned for commercial operation within 2020.

LNG Alexandroupolis and its connections to neighbouring gas markets

The Project aims to provide an alternative source of gas supply to South East European markets and will offer to the region security of supply, diversification of gas routes and sources, price flexibility and enhanced competition. It will satisfy the additional gas demand in the region mid and long term, give access to LNG and contribute to lifting the isolation of markets and enhance gas market penetration.

The tender process for the construction of the Project was launched in September this year and construction is expected to begin in Q2 2019. Commercial Operation Date for the Project is planned for 4Q 2020.

The Project is included in the European Union list of Projects of Common Interest (PCI) and is fully licensed.

The Project is expected to be financed through own resources, commercial banks and shareholder equity, with possible co-financing from public funds. Public funds will be provided through the Greek Public Investment Program, partly through national participation and partly through the European Union / European Regional Development Fund (ERDF), within the 2014-2020 programming period and under the Operational Program “Competitiveness, Entrepreneurship and Innovation”. The project is a
candidate for co-financing from public funds.

All necessary information, instructions and documents for the Expression of Interest procedure can be found at Gastrade’s website, www.gastrade.gr (News & Announcements).

Participation to the EoI procedure does not require a Participation Fee and the deadline for receipt of Expressions of Interest is: 14/12/2018, 17:00 Athens time.

For more information:

Ms. Eva Spilioti
GASTRADE S.A.
Tel.: +30 211 4118170
Email: eva.spilioti@gastrade.gr