Greece Aims to Link TAP with Regional Strategic Gas Facility
The selection of the Trans-Adriatic Pipeline (TAP) has led to plans by all interested parties to boost the energy diversification of Southeastern Europe in the near future, using optimum methods such as interconnectors and natural gas storage facilities. Regarding the latter, the Greek Ministry of energy is trying to revitalize an old plan to create a significant strategic depot in the Kavala region in the North of the country, right beside the proposed route of TAP.
According to unofficial commentary by Greek Ministerial sources, plans include the creation of a gas hub by around 2018-2019 when the first flow of Azeri gas will traverse the region via TAP. A gas storage facility envisaged is said to have a capacity of around 1.25 bcm that will both cover emergency needs of Greece, along with Bulgaria's, through the Interconnector Bulgaria-Greece (IGB), which is due to be operational by 2015.
A second phase after 2020 will aim to materialize an LNG terminal both for export of Azeri gas into the international markets or for imports that will then be re-exported to the Bulgarian, Romanian and Hungarian markets through interconnectors in these countries. These plans depend primarily on backing from the TAP consortium, which will be the main beneficiary. Informal talks on the subject are said to be underway between Greek stakeholders and their partners.
Furthermore, Albanian authorities are said to be in similar talks with TAP's management in order to create gas storage facilities in the Adriatic Sea. Presently TAP is scheduled to transfer 10 bcm, an amount deemed not sufficient for the fulfillment of all plans. As such the Greek government is seriously thinking of fully privatizing the designated gas storage facility in Kavala and said to be actively engaging SOCAR with aims to form a strategy of storage facilities of its production in Greece and link those projects with international LNG trade.
It should be noted that similar negotiations were underway late 2012 and in May 2013 between Athens and Russia's Gazprom and Sintez that were at that time interested in buying DEPA and DESFA, though interest eventually waned conveniently just days before the announcement of Nabucco's defeat. In that sense, the Greek Administration is trying to use the Azeri interest in DESFA, which is close into materializing a business deal, as a way to stay in the regional energy game and establish a natural gas hub.
Regarding SOCAR and DESFA, the former is about to submit its €40 million guarantee letter to the Greek privatization authority. In the coming weeks an additional €400 million is expected, so as to close the deal that will see SOCAR obtain 66% of the Greek gas network manager.
Lastly, Greece's Energy Ministry is viewing TAP's selection as an integral project for the country's economic revival and plans to lay down further plans in the coming months for its expansion to both the Azeri side and the rest of the countries that the pipeline is going to pass through, Italy and Albania.