Greek LNG terminal market test 'successful': Gastrade

The open season for binding regasification capacity at Greece's planned 4.2mn t/yr Alexandroupolis LNG terminal was "successful", developer Gastrade said.

The market's response was "very satisfactory and far surpassed similar cases for new gas projects recently", Gastrade said today.

Binding bids reached 2.6bn m³/yr for up to 15 years, as Greek and foreign gas companies, as well as consumers, took part. But this was well below the 12.2bn m³/yr reserved during the non-binding phase and less than 50pc of the terminal's planned capacity.

The second market test had been extended several times.

Bulgarian and Serbian firms confirmed their interest in the terminal by submitting offers, but Romania's state-owned Romgaz did not participate.

Romgaz had been planning to make a binding offer for capacity, as stated in a filing with the Bucharest Stock Exchange (BVB) in September. It also considered buying a 20pc stake in the terminal.

Bulgarian state-owned Bulgargaz had expressed its intention to reserve 5.3 TWh/yr of capacity at Alexandroupolis for 10 years, receiving approval from Bulgaria's council of ministers earlier this month. System operator Bulgartransgaz and Greek state-owned gas firm Depa have also committed to buying 20pc each in Alexandroupolis.

"The very satisfactory result of the binding phase... and the participation of key gas market players in Greece and southeast Europe, constitute a critical step towards the materialisation of the project, and eventually the enhancement of energy diversification and security of supply in Greece, the Balkans and the wider southeast European area," Gastrade managing director Konstantinos Spyropoulos said.

The terminal is expected to come on line in the third quarter of 2022. Gastrade expects to make a final investment decision on the facility in the second half of this year.

By Eleni Charisi and Jacob Mandel