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ENERGY

its since its foundation. Earnings before taxes rose to 244.73 million euros versus 152.3 million in 2010, and net earnings after taxes rose to 190.9 million versus 90.8 million in 2010. Its EBITDA reached 275.03 million euros versus 204.31 million in 2010 and total revenues to 1.76 billion euros versus 1.22 billion in 2010. The high profitability is a result of the large increase of gas quantities delivered by DEPA (commercial activity), and of the quantities transported through DESFA’s network. Specifically, out of a total demand of 4.5 bcm approximately, DEPA supplied 4.22 bcm versus 3.85 bcm in 2010. New activities In 2011, DEPA invited an international tender for the participation of investors in 3 new GSC that will cover the regions of East Macedonia and Thrace, Central Macedonia, plus Central Greece and Evia. In those 3 regions, DEPA has invested up to 160 million euros in necessary infrastructures, such as steel pipe networks, natural gas valve stations etc. and city networks, so that the new GSC will be able to operate as soon as possible after their foundation. The new networks will provide gas to large urban centers in the regions of Central and Northern Greece, very soon after the completion of the tenders, since the new companies will be able to begin immediately the distribution of natural gas to commercial, industrial, and domestic clients, due to the investments already made by DEPA. The deadline for the reception of invitation to prequalify by private investors interested in participating in these firms, and assuming their management, expires on the 23/4/2012. As far as the use of natural gas for vehicles is concerned, DEPA is a pioneer in Greece; as in the beginning of the decade 20002010, it created the first bus fuel supply station. Today, it operates two such units that supply gas to more than 800 public transportation vehicles and to vehicles of local government organizations. In fact, one of these stations also supplies gas to privately owned vehicles. DEPA firmly promotes vehicle motion by natural gas, and soon a gas station network will begin to operate in Greece, covering the urban centers through a distribution network, as well as the AthensThessaloniki highway, thus opening up the market and creating the circumstances required in order to further promote natural gas vehicle motion, given the fact that the number of vehicles powered by natural gas is increasing. International activity Since the completion of the basic infrastructure for the introduction of natural gas in Greece, DEPA traced out an expansion strategy based on the exploitation of the country’s geographical advantages. The first step in this direction was the connection of the Greek network to the Turkish one in order

to supply not only Greece but the broader region too, with natural gas from the Caspian Sea that Turkey already uses. Thus, since 2007, the Greek system receives approximately 0.7 bcm of natural gas from Azerbaijan through BOTAS. At the same time, DEPA concluded a strategic alliance with the Italian energy company Edison for joint participation in big interfrontier pipeline projects. Edison is the second largest power generation company in Italy, very active in the management of infrastructures for transport, storage and distribution of natural gas. As a result of this association, the “Poseidon” joint venture was set up, which is responsible for promoting the construction of the Greece – Italy (IGI) underwater pipeline, 200 km long, with an annual capacity of 8.8 bcm, as well as the new interconnection to the Bulgarian network, the IGB pipeline, 180 km long with an annual capacity of 5 bcm. The two pipelines are designed for double flow in order to exploit the possibilities of gas reception from every available source, i.e. according to current data, from the Caspian Sea through Greece to Italy and Bulgaria, from North Africa through Italy to Greece and Bulgaria, and Liquefied Natural Gas through the Revithoussa Terminal to Italy and Bulgaria. Regarding the permits and studies required, the two projects are in a quite advanced stage. The IGI has received the environmental permits from the Greek and the Italian authorities, whereas the IGB has received the relevant permits from the Greek authorities and in the very near future it is expected to receive the corresponding permits from the Bulgarian Ministry of Environment. Thus, the construction of the IGB can even begin at the end of 2012, so that the pipeline will be commercially operational in 2014. The European Commission has recognized the importance of the IGB for the supply of natural gas to Southeast Europe; the project has been characterized as a common interest project, and the EU will support its construction with 45 million euros. New discoveries and DEPA The discovery of important natural gas quantities in Cyprus’ Exclusive Economic Zone (EEZ) offers new perspectives to the entire East Mediterranean area. DEPA closely follows the developments in the region, aiming to play an important role in the gas transport, using existing or new infrastructures. Initially, it prepared a preliminary study regarding the possibility of natural gas transport from the new fields to Europe through pipelines. The study concluded that the construction of a 1,100 km long underwater pipeline, which will connect the new fields to the Greek pipeline system and from there will transport the natural gas to Europe through a series of interconnectors, is technically feasible. The discoveries in Cyprus’ and Israel’s EEZ indicate that the 3 new fields (Tamar, Leviathan, Block 12) contain approximately 1 tcm of natural gas, a quantity large enough to justify the construction and operation of such a big underwater pipeline. In addition to this prospect, DEPA examines the possibility of transportation of the East Mediterranean gas to the European networks through LNG terminals on Greek soil, and from there, the utilization of international interconnections. EUROPEANBUSINESSREVIEW

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Profile for European Business Review (EBR)

European Business Review (EBR)  

Issue 1/2012 of "European Business Review (EBR)" magazine

European Business Review (EBR)  

Issue 1/2012 of "European Business Review (EBR)" magazine

Profile for ebreview
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