Greece Plans New Investments for Domestic Natural Gas Infrastructure
The Greek Company DESFA, which is a 100% subsidiary of the DEPA natural gas corporation, has announced a 1.7 billion Euros investment plan aimed at boosting household and industrial usage of natural gas in the country, in a move closely related with regional pipeline projects as well.
The most important projects are the upgrade of the Revythousa LNG terminal (180 million Euros), a new domestic pipeline to the industrial region of Aliveri (181 million Euros), a new compressor gas station in Nea Mesimvria area (60 million Euros).Furthermore, other infrastructure projects are of a meter station for the proposed floating LNG terminal offshore the Alexandroupoli port and another one aimed for the IGB pipeline.
Moreover the Nickel production facility in Larymna (the largest of its kind in the EU) will be connected with the nationwide gas system as well as, the ELPE oil refinery in Elefsina close to Athens which recently was upgraded and it’s the top facility of its kind in the Balkans. The total amount of investments for the aforementioned is scheduled around 180 million Euros.
Another project is the construction of an underground natural gas depot close to the Kavala region which will have the status of open access for third parties. More specifically the depot will have an Annual Volume throughput of 720 million cubic meters with a daily input capacity of 5 million cbm. The Greek government is reviewing to sell this depot to an international bidder through a privatization process; nevertheless DESFA has concluded its business plan for it and is in unofficial talks with the Energean Company regarding a joint 350 million Euros investment for it.
Other projects at hand for DESFA are, the creation of another three domestic meter stations (In Karditsa, Trikala, Korinthos regions), the upgrade of the Sidirokastro meter station and the connection via pipeline with the central system of the industrial complex of Korinthos Power-Motor Oil, another oil refinery coupled with an electricity production plant. These investments are estimated to be around 100 million Euros.
DESFA is also gearing up for the "Poseidon" underwater Greek-Italian pipeline. Although initially it was planned to be an ITGI part, it is reviewed as to be coupled with either TAP or South Stream. In addition the Kipoi compressor station in the borders with Turkey (Also an ITGI related plan) is scheduled to be used in conjunction with a regional pipeline project. The Company also schedules lesser but numerous projects for promoting the use of gas to Greek small urban centers in high elevation grounds (Greece being a mountainous terrain), which for the moment are excluded from the national system due to reasons of cost. Regarding the Island of Crete a small-size LNG terminal is proposed in the Korakias region. Further, gas stations for the fill-in of commercial and transport buses and other heavy vehicles are being sought, as well as proliferation of the small-pressure pipeline system for household consumption.
According to the regulatory authority for energy in Greece (RAE), the country will need 6,000 MW of extra electricity production by 2025 and the use of gas for the supply of the urban centers has been estimated as the best source and as environmentally friendly.
Greece's energy strategy places great attention into increasing by as much as 100% the use of gas in the country within the next decade, in order to decrease oil consumption (Costing around 5% of GDP for 2011) and lignite production.