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Greece LNG Market

The Revinthoussa LNG Terminal expanded capacity in 2018, the Trans-Adriatic Pipeline was completed in 2020, and the IGB Pipeline is set to come online in 2022. Such projects will allow for Greece to become an energy exporter as the nation also works to upgrade energy infrastructure in order to fully utilize renewables and phase out lignite. Following the expansion of the Revinthoussa Terminal, exports of U.S. LNG quickly made-up nearly half of the nation’s LNG exports. While currently all such exports are short term sales, the Government is looking into the possibility of long-term contracts, especially in the wake of recent geopolitical tensions. The Government also has made inquiries regarding how to transport LNG across Greece from ports of entry.

There are six LNG projects in Greece at various stages of maturity.

•    Revinthoussa LNG Terminal Expansion: DESFA, Greece’s natural gas distributor and manager and operator of Revinthoussa LNG Terminal, is in the process of expanding storage capacity through an FSRU. The contract has been awarded to a local firm with expected project completion in July 2022.
•    Alexandroupoli FSRU: The first of two approved FSRUs is set to be built by 2023. A financial closing celebration was widely attended by political leaders from around the region as the FSRU is situated near a strategic port currently undergoing privatization. The local firm, Gaslog, is a joint venture with Greece and Bulgaria, and the project promises to supply the region. The first is set to be completed in 2023. The second project, Thrace FSRU, was recently greenlighted and has no completion date. Both will be managed by the same consortium.
•    Corinth FSRU: Local firm Motor Oil has conducted a non-binding market test for its planned Corinth FSRU and the project is under development after receiving regulatory approval. Once completed, it would connect to a conventional import terminal.
•    Volos FSRU: Local firm MedGas received regulatory approval for its FSRU project in Volos. The firm is in discussions with potential off-takers including Exxon.
•    Thessaloniki FSRU: Local firm Elpedison has submitted an application to develop an FSRU in Northern Greece and awaits a decision from regulatory authorities.

Opportunities for U.S. firms

About 40% of Greece’s energy needs are met by Russian gas. Greece also is dependent on lignite and has pushed its lignite phaseout to 2028 following the crisis in Ukraine. While ambitious efforts continue to utilize renewables and develop hydrogen projects, the short-term plan will be reliant on LNG. Currently, Greece purchases LNG from many nations including the United States, which is the source destination for nearly half of the nation’s LNG imports. In the first quarter of 2022, the United States was the largest supplier to Greece. U.S. firms have opportunity to increase their exports to Greece through shipments to Revinthoussa terminal and other projects that will come online. Firms may either participate in DESFA international open tenders or register and submit offers through the newly launched Natural Gas Trading Platform of the Hellenic Energy Exchange. The exchange allows for anonymous transactions for natural gas. For private projects, firms may directly connect with the project developers.

DESFA Tenders website  - DESFA Official website
Hellenic Energy Exchange   - Energy Market Member registration procedures

Beyond LNG itself, there will be a huge need for associated LNG infrastructure. Not all FSRUs have been secured for the project above. Furthermore, consulting services, equipment, and other infrastructure related needs will create opportunities. Cybersecurity has proven to be one such area where U.S. firms naturally have an advantage, and where private developers are in search of quality solutions to safeguard critical infrastructure. Many developers also are in need of consultants or project managers, as many projects have ambitious timelines and many moving parts.

Should you be interested in learning more about this subsector please reach out to the Energy Industry Specialist Teresa Gile at Teresa.Gile@trade.gov) or Mary Simopoulou (Mary.Simopoulou@trade.gov

If your solution is ICT focused, please reach out to Nikos Papachryssanthopoulos at (Nikos.Papachrys@trade.gov).
Industry specialists Athina Kladis (Athina.Kladis@trade.gov) and Irini Karajani (Irini.Karajani@trade.gov) follow infrastructure issues as a whole.
 

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