Commission approved the financial support of the LNG terminal in Alexandroupolis by the Greek State

The European Commission has approved, under EU State aid rules, a €166.7 million Greek support measure for the construction of a new liquid natural gas (“LNG”) terminal in Alexandroupolis, Greece. The project will contribute to the security and diversification of energy supplies in Greece and, more generally, in the region of South East Europe, without unduly distorting competition.

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 beneficiary of the state aid, which will take the form of a direct grant of EUR 166.7 million, is Gastrade SA, developer and operator of the new terminal. Ms. Elmina Copelouzou, Gaslog Cyprus Investments LT, DEPA COMMERCIAL and Bulgartransgaz EAD hold a participation in the company.

With a firm commitment towards the clean energy era, the project will contribute to a cleaner energy mix by promoting the use of natural gas instead of coal whilst the terminal’s design will allow for swift adaptation to also receive, store and transmit hydrogen.

The project supports and works in complementarity with other existing or planned major gas infrastructure projects in the region, such as the Greece-Bulgaria interconnection (IGB), the Trans Adriatic Pipeline (TAP), the Bulgaria-Serbia interconnection (IBS), the Greece-Northern Macedonia interconnection, the Kavala underground gas storage facility and the Revithoussa LNG terminal.

The LNG terminal in Alexandroupolis has been included in all the lists of European Projects of Common Interest (PCI – Project of Common Interest – Regulation EU 347/2013) in the energy sector, given its strategic importance, as it contributes materially to the diversification of sources and energy supply routes of the entire South East Europe. The project enhances energy security in the region and supports the creation of a regional gas hub.

The floating unit will be located 17.6 km south-west of the port of Alexandroupolis and will have storage capacity of up to 170,000 cubic metres and a gas supply capacity of more than 5.5 billion cubic metres per year. The floating unit will be connected to the National Natural Gas Transmission System by a 28 km pipeline, through which the regasified LNG will be transmitted to the markets of Greece, Bulgaria and onwards to the wider region, from Romania, Serbia and North Macedonia to Moldova and Ukraine.