Commercial Operations of Gastrade’s Alexandroupolis LNG Terminal begins
Press Release
Commercial Operations of Gastrade’s Alexandroupolis LNG Terminal begins
A Milestone for Europe’s Energy Security and Development
The transformation of Alexandroupolis into a new energy gateway for the entire Central and Southeast Europe begins today with the start of Commercial Operations of the Alexandroupolis LNG Terminal.
Gastrade proudly announces today, October 1st, 2024, that the Alexandroupolis LNG Terminal has entered commercial operations. It is one of the most important energy projects at the European, Regional, National and local level, designed, built, owned and operated by Gastrade. A landmark project envisioned 15 years ago by Dimitris Copelouzos.
The result of great collaborations, with a pioneering conception for its time, the Project contributes to energy security and to 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.
From the Final Investment Decision to the Commencement of Commercial Operations
The implementation of the Project began to materialise when the Final Investment Decision (FID) was taken on January 27, 2022, by Gastrade. Subsequently, onshore and offshore construction work in Alexandroupolis progressed rapidly, while in February 2023 construction of the LNG floating storage and regasification unit (FSRU) began in Singapore. The FSRU sailed from the Seatrium shipyard on November 26, 2023, arriving in the waters of the Thracian Sea on December 17, 2023, where it moored in its permanent position. With the successful completion of all commissioning tests and the issuance by the Ministry of Energy and Environment of the Operating Permit this past summer, the Project was brought into operational readiness, officially allowing the commencement of its commercial operations.
The Alexandroupolis LNG Terminal consists, apart from the FSRU, of a subsea and onshore natural gas pipeline which connects the FSRU to the National Natural Gas Transmission System (“NNGTS”) through which 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. The FSRU, named “ALEXANDROUPOLIS” to honour the city and its inhabitants, who embraced this ambitious project from the beginning, has a state-of-the-art technology, with a maximum regasification capacity of 5.5 billion cubic meters per year.
The Next Day
Already 14 Greek and international companies are participating commercially in the Project, committing almost all of the Terminal’s capacity until at least 2030. At the same time, the start of commercial operations of the Project marks the enhancement of the Vertical Corridor initiative, significantly strengthening its dynamics, aiming to create a natural gas trading hub in Southeast and Central Europe.
The Gastrade team, together with its strategic partners and shareholders, Elmina Copelouzou, Gaslog, DEPA Commercial, Bulgartransgaz, and DESFA, would like to express its appreciation to all those who contributed to the successful completion of this project of National importance and remains committed to ensuring a more sustainable and secure energy future for Greece and Europe.
The Managing Director of Gastrade, Kostis Sifnaios, said: “We are all, in the Gastrade team, very proud and excited to have reached successfully the end of this long journey and deliver to our country and the whole wider region this important project. 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.”
“It took the vision of one person, fifteen years of effort and two years of intensive technical preparation so that Greece, Alexandroupolis, could acquire a cross-sectional project for the energy standing of the wider European region. 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,” emphasizes the founding shareholder of the Company Elmina Copelouzou.
“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 Paolo Enoizi, CEO of Gaslog.
“Today marks the commencement of a new chapter in the energy landscape of our region. The Alexandroupolis LNG Terminal, conceived with a forward-looking vision, represents a tangible solution to the pressing challenges of energy security and diversification of supply sources in Southeast Europe. Through this project, we are securing access to more reliable and diverse energy sources, generating new economic opportunities for the local community, and bolstering our nation’s geopolitical standing. We take great pride in DEPA Commercial’s pivotal contribution to the successful realization of this strategic infrastructure, which will bring substantial advantages to both Greece and its neighbouring countries,” stated Konstantinos Xifaras, CEO of DEPA Commercial.
“The start of commercial operation of the Alexandroupolis FSRU is a key milestone for ensuring diversified supplies and for guaranteeing the energy security not only for Bulgaria, but also to the South-Eastern European region. The decision, that was taken in 2020, by Bulgaria and Bulgartransgaz to become shareholders with 20% share in Gastrade S.A. proved to be a strategic one. Today, the Alexandroupolis FSRU is undoubtedly a key infrastructure ensuring access to gas supplies from secure and reliable sources, such as the USA, Qatar, Egypt etc. 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.” commented Kiril Ravnachki, Executive Director of Bulgartransgaz.
“The launch of commercial operations at the Alexandroupolis FSRU is a pivotal development that solidifies Greece as a key energy gateway for Southeast Europe and beyond. This new LNG import facility, alongside the Revithoussa LNG Terminal, coupled also with DESFA’s investments to enhance the export capacity of the Greek gas grid, and initiatives like TAP, IGB and the Vertical Corridor, strengthens further the region’s energy infrastructure and interconnectivity,” added Maria Rita Galli, CEO of DESFA.
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About Gastrade S.A.
Gastrade is the first company in Greece to be granted an Independent Natural Gas System License. Gastrade studies, designs, constructs, operates and exploits the necessary infrastructure for receiving, storing, transporting, and distributing natural gas in a safe, adequate, reliable and cost-effective manner.
Gastrade developed and will operate the Alexandroupolis Independent Natural Gas System.
The Project has been co-financed by the European Regional Development Fund of the European Union through the Operational Programmes “Competitiveness, Entrepreneurship, and Innovation (EPAnEK)” and “Environment and Climate Change (PEKA)” within the NSRF of 2014-2020 and 2021-2027 respectively.
For more information, you can visit the Company’s website, www.gastrade.gr/en or contact Gastrade at info@gastrade.gr.