A new doorway to energy

S. Flora, Gastrade SA, Greece, details the plans for a new LNG terminal in the north of Greece, and discusses the ways in which it will benefit the country as well as Southeastern Europe.

Greece and Southeastern Europe face the challenge of transformation from a carbon dependent to a carbon free energy system. It is a fact that the global energy landscape will transform towards cleaner sources, and the EU has set itself a binding target of achieving climate neutrality by 2050.

This transformation requires time, since the heavy penetration of renewables also relies on significant investments in battery storage and grid management capabilities. To this end, the EU has also set an intermediate target to cut emissions by at least 55% by 2030. This means that natural gas will be the transitional fuel for the next period. Low carbon gases such as biogas and hydrogen will also be a growing part of the Green Agenda.

The growing gas market

The National Energy and Climate Plan for Greece that sets the energy strategy for the next decade dictates that all lignite units will be decommissioned by 2023. This means that 3.4 GW of lignite capacity will be decommissioned, which in turn will lead to an increase in power generation from natural gas plants. In addition, natural gas will also further expand to other uses.

Gas penetration is increasing both geographically and in existing urban networks. New sectors are opening up to gas consumption, such as marine, transportation, and industrial use, showing the significance of natural gas as the transitional fuel.

Similar patterns are seen in most of the markets of Southeastern Europe, such as in Bulgaria, Serbia, North Macedonia, and Romania.

On one hand, there is the anticipated increase in natural gas demand, and on the other hand there is the need for natural gas infrastructure to accommodate this demand.

Thus, looking at the region of Southeastern Europe there is the need for a new LNG terminal not only to accommodate the increased demand from natural gas as the transitional fuel but also due to geopolitical reasons. In addition, 2021 has shown that there is still a strong dependence on Russian gas.

Furthermore, a new dependency has been created as all the new pipeline routes, such as TAP and TurkStream, now cross

Turkey, making the country the pivotal point in this supply chain. The only fully independent infrastructures are LNG import terminals.

A new LNG terminal in Greece

The Alexandroupolis LNG Terminal in northern Greece, developed by Gastrade SA, comes to fulfill the needs of the region, creating an energy hub while providing direct access to LNG. Gastrade is a Greek company owned equally by Ms. Asimina-Eleni Copelouzou (the Founding shareholder), DEPA Commercial SA (active in wholesale and retail gas market), Gaslog Cyprus Investments Ltd (100% subsidiary of Gaslog Ltd), DESFA SA (the Greek TSO), and Bulgartransgaz EAD (the Bulgarian TSO).

The choice of northern Greece as the location of the LNG terminal was based on technical, environmental, commercial, and financial criteria. Specifically, it was based on the ease of accessibility that this region provides to many emerging markets, and on the existence of the gas transmission systems currently crossing or planned to cross it. At the same time, the selected location of the LNG terminal should promote the objectives of the National Energy and Environmental Policies and it should be compatible with the following selection criteria: � The terminal should have easy and direct access to the

National Natural Gas Transmission System (NNGTS), or other inter-regional transmission systems (e.g. TAP) through a relatively short interconnecting pipeline section,

so that the cost of the interconnection with the relevant downstream systems remains low. � The project infrastructure should not interfere with areas of agricultural activity, forest lands, industrial or other economic activities including tourism, archaeological sites, etc. Therefore, the choice of its strategic location should have the least possible impact in the above areas/activities nor should have any interference with residential areas or transportation (land and marine). � The location of the LNG terminal should not create cross-border conflicts with neighbouring countries and is desirable to promote national security. � The terminal should also provide access to LNG to as many markets as possible in the region of Southeastern Europe.

The project will be an alternative source of gas supply that will increase the flexibility of the gas system, promote competitiveness, and enhance sustainability.

Figure 1. The FSRU of the Alexandroupolis LNG Terminal.

Figure 2. Alexandroupolis LNG Terminal’s strategic location and Gastrade’s shareholding scheme.

Project plans

The project comprises an FSRU and a natural gas transmission pipeline. The FSRU will be spread moored permanently at approximately 17.6 km southwest of the town of Alexandroupolis in northeastern Greece at an offshore distance of approximately 5.4 nautical miles (10 km) from the nearest shore. The FSRU will have an LNG storage capacity of 153 500 m3, a nominal regasification and send-out capacity of 5.5 billion m3/y, and a peak technical regasification and send-out capacity of 8.3 billion m3/y.

The FSRU will have four LNG storage tanks, associated pumps and piping, and regasification trains with the functionality of a combined open and closed loop intermediate fluid heating medium system. The FSRU includes the LNG receiving facilities to berth incoming LNG carriers (including unloading, piping, and shut down systems), a boil-off gas (BOG) management system, utilities and waste management systems, safety systems (hazard detection and emergency shutdown, fire protection, spill containment), and other facilities (spares and personnel transfer area) and systems (electrical, automation, control, and communication).

The FSRU will have a suitable mooring and high-pressure natural gas transfer system, transmitting the gas through flexible riser(s) to the pipeline end manifold (PLEM) on the seabed, where the gas transmission pipeline is connected.

The gas transmission pipeline will have a nominal dia. of 30 in. It will comprise of an approximately 24 km subsea and a 4 km onshore section. The pipeline crosses the shore approximately 4 km east of Alexandroupolis, and near the shore crossing area, a coastal valve station will be built.

The onshore pipeline section will terminate at the connection point with the NNGTS in the area of Amphitrite, Greece, 5.5 km northeast of Alexandroupolis. At the above connection point, DESFA, the transmission system operator, will build a receiving, metering and regulating (M/R) station.

The project has been designed in line with the recommendations of the relevant authorities and the requirements of the issued licenses. The project has received approval for the environmental terms and access rights to shore.

Technical design will adopt best available technology and comply with all EU/national security and safety regulations. The n+1 philosophy ensures safe and continuous FSRU operations.

Project implementation has been thoroughly planned and will be supported by adequate expert resources to safeguard on

time and within budget delivery. Overall project construction co-ordination and interfaces have been given the maximum required attention.

From a safety and security angle, detailed management plans will be developed in co-ordination with the competent relevant national and local authorities to ensure adequate surveillance, detection, and prevention measures as well as incident tackling procedures and recovery remedies with an objective to secure the highest possible protection to human lives and properties.

With regards to the environment, the project has already adopted the latest environmental guidelines and directives beyond, where applicable, the already approved environmental terms associated with the existing Environmental Impact Assessment.

Project objectives

The construction of the new LNG terminal in Alexandroupolis has been included in the Operational Programme of the Greek National Strategic Reference Framework ‘Competitiveness, Entrepreneurship, and Innovation 2014 - 2020’ and has received a public expenditure of €166.7 million. Some highlights of the objectives that the LNG terminal in Alexandroupolis fulfills include the following: � The project is a key outlet for the supply of the Greek and the Southeastern European markets satisfying the additional gas demand in the region. � The terminal provides an alternative supply route giving access to LNG supply to markets with limited supply options such as the markets of Southeastern Europe. � Enhancement of supply security of the Greek and the regional markets. The project is required for the security of supply of the whole region in the Russian gas disruption

and Turkish route disruption scenarios and has a significant impact on Greece’s ‘N-1’ indicator expressed as ‘single largest infrastructure disruption (SLID)’. � Contribution to the elimination of the isolation of regional markets, particularly Bulgarian and Serbian markets that have limited supply options, and enhance gas market penetration. � Promotion of competition within the Greek and the regional markets by means of diversification of sources, routes, and counterparts. � Promotion of sustainability since the natural gas will be the bridging fuel to a fully decarbonised energy system and the

LNG Alexandroupolis Terminal will support this transition. � Support of the viability and/or commercial attractiveness of regional or inter-regional transmission and/or interconnection projects. � Provision of an outlet for the transmission and marketing of new gas findings, especially in the East Mediterranean gas fields.

� Provision of additional flexibility to the system. � Support of local socioeconomic development – reinforcing employment through new job creation for the local workforce by boosting many activity sectors and by providing access to competitive energy. � Contribution to a cleaner energy mix through increased utilisation of gas instead of coal, hence reducing CO2 emissions and supporting the transition to meet the 2050 decarbonisation target.

To sum up the aforementioned points, it is evident that the Alexandroupolis LNG Terminal addresses the needs of the region towards a cleaner energy system. The project will commence operation at the end of 2023.

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