The nuances of integration between the Alexandroupolis terminal and TAP are discussed
In January 2024, the FSRU "Alexandroupolis" with an annual liquefied gas transhipment capacity of 5.5 billion cubic meters will be connected to the underwater and onshore high pressure gas pipeline to be able to supply gas to the Greek gas transmission system and further to end consumers in Greece, Bulgaria, Romania, North Macedonia, Serbia, Hungary, Slovakia and even Moldova and Ukraine, including through transit via TAP (European segment of the Southern Gas Corridor - SGC).
The Trans Adriatic Pipeline (TAP) consortium is consulting with Greek gas transmission operators on a technical agreement that covers the possibility of delivering gas to eurozone buyers from the new floating liquefied natural gas terminal (FSRU) in Alexandroupolis to their markets via TAP.
A source knowledgeable in this matter exclusively told Trend about this.
He noted that at the very beginning of the process of creating this terminal, which will be managed by Gastrade (its shareholders are GasLog, Copelouzou, DESFA, DEPA and Bulgartransgaz), it was stated that this LNG terminal would be integrated into the gas pipeline systems of Greece and Bulgaria, which includes TAP.
The floating terminal with a capacity of 153,600 cubic meters of gas arrived in Alexandroupolis from Singapore on December 17, 2023 and is currently undergoing the technical procedures necessary to begin its operation.
In January 2024, the FSRU "Alexandroupolis" with an annual liquefied gas transhipment capacity of 5.5 billion cubic meters will be connected to the underwater and onshore high pressure gas pipeline to be able to supply gas to the Greek gas transmission system and further to end consumers in Greece, Bulgaria, Romania, North Macedonia, Serbia, Hungary, Slovakia and even Moldova and Ukraine, including through transit via TAP (European segment of the Southern Gas Corridor - SGC).
Gastrade is awaiting guaranteed bids for gas volumes for the FSRU and expects to begin commercial operations by the end of the first quarter of 2024.
“The main LNG for this terminal will most likely be American, but other gas sources are also possible. The TAP consortium is also currently conducting a market test to understand whether there will be free capacity to pump gas from the new Greek gas terminal through the TAP system and also, possibly, through IGB (Interconnector Greece Bulgaria),” the source noted.
According to him, the TAP market test is being conducted from October 20, 2023 in two stages, and its results will be known on January 31, 2024.
“Both suppliers of pipeline gas and LNG, as well as traders, and even gas buyers who themselves want to be responsible for its transportation and receipt can reserve capacity in TAP. The main conditions are to take on long-term obligations and pay a tariff to the transport operator, that is, the TAP consortium", the source added.
Currently, TAP's throughput capacity is 12 billion cubic meters of gas per year; in the next two to three years, the gas pipeline will actually be able to pump about 14 billion cubic meters per year.
In September 2023, the TAP consortium reported that doubling its capacity is possible by the end of 2028, but this directly depends on what guaranteed reservation requests will be.
Commercial operations under TAP have been ongoing since the end of 2020, and mainly concern gas supplies to Italy, Greece and Bulgaria from the Shah Deniz field under 25-year contracts signed in 2013 with nine European companies.