Aid for Greek LNG terminal state is approved

The Greek government’s proposal to award €166.7 million in state aid to the LNG import terminal in Alexandroupolis, Greece, has been approved by the European Commission.

The Commission observed that the terminal will contribute to security and diversification of energy supplies in Greece and the wider region of southeast Europe. The Commission approved the aid under EU state aid rules. 

The planned floating storage and regasification unit is being built by Gastrade, a collaboration between Greece state gas firm DEPA and Bulgaria’s gas transmission system operator Bulgartransgas. 

The terminal will be situated 17.6 km from Alexandroupolis, 10 km from the nearest shore. It will have a delivery capacity of 5.5 billion m3 per year. A system of subsea and onshore gas transmission pipelines will connect the terminal to a new entry point to a branch of the National Natural Gas System of Greece. 

The FSRU will have permanent offshore installations, the terminal will also be suitable for hydrogen. Due to its strategic importance for the diversification of natural gas supplies in the region, the Commission has included the Alexandroupolis terminal in the lists of European Project of Common Interest in the energy sector. 

Executive vice president at the European Commission, Margrethe Vestager, 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.”

For more information visit www.gastrade.gr

24th June 2021