Friday, April 12, 2024
HomeLNGCommission approves a 166.7 million euro support measure for new LNG terminal...

Commission approves a 166.7 million euro support measure for new LNG terminal in Alexandroupolis

The European Commission has approved, under EU State aid rules, a 166.7 million euro Greek support measure for the construction of a new liquid natural gas (LNG) terminal in Alexandroupolis. The project will contribute to the security and diversification of energy supplies in Greece and, more generally, in the region of South-East Europe, without unduly distorting competition.

“The new LNG terminal in Alexandroupolis will improve gas supply and infrastructure not only in Greece but in the whole South-Eastern European region,” said Executive Vice-President Margrethe Vestager, in charge of competition policy. “This will contribute to the 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.”

Greece notified the Commission of its plans to support the construction of a new LNG terminal in Alexandroupolis, consisting of a Floating Storage Regasification Unit (FSRU) for the reception, storage and regasification of LNG (complemented by permanent offshore installations, such as mooring system and risers), as well as a system of a sub-sea and an onshore gas transmission pipeline which will connect the FSRU to the National Natural Gas System of Greece (NNGS).

Given its strategic importance for the diversification of natural gas supplies into the South-Eastern European region, the LNG terminal in Alexandroupolis has been included in the lists of the European Project of Common Interest in the energy sector, based on the EU TEN-E (Trans-European Network for Energy) rules since 2013.
The terminal is expected to improve the security of supply not only for Greece but also for Bulgaria and for the wider South Eastern European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria (IGB).

The Greek Authorities have confirmed that the LNG Terminal would be apt to use for hydrogen and that the project would contribute to a cleaner energy mix through increased use of gas instead of coal.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular