Motor Oil signed a Memorandum of Understanding (MoU) with multinational energy trading giant Mercuria Energy focusing on the Dioriga Gas Floating Storage and Regasification Unit (“FSRU”) project. As powergame.gr previously reported, Motor Oil had pre-announced the involvement of new “players” in the Agioi Theodoroi FSRU project – officially signaling the project’s restart – revealing that it “is in negotiations with significant LNG market participants to complement existing shareholders.”
According to the joint announcement from both parties (Motor Oil and Mercuria), the MoU establishes a framework for long-term cooperation regarding the Dioriga Gas FSRU being developed by Motor Oil through its 100% subsidiary Dioriga Gas and “represents the optimal solution for LNG imports to Greece and the broader Southeast Europe region. The project will play a crucial role in diversifying natural gas supply sources, strengthening regional energy security, and reinforcing Greece’s position as a key LNG gateway to Europe.”
What the Motor Oil-Mercuria agreement provides
Under the Memorandum framework, the parties have initiated step-by-step cooperation regarding regasification capacity commitment at the terminal, long-term LNG supply from Mercuria to Motor Oil for delivery through the Dioriga Gas FSRU, as well as joint development of the framework required for the project’s commercial operation launch.
This cooperation reflects both parties’ shared commitment to support energy security in Europe and invest in infrastructure that forms the foundation for reliable and diversified natural gas supply. Both parties look forward to their collaboration in advancing this significant addition to the region’s LNG import capacity.
It should be noted that earlier this month, Motor Oil signaled to the market that it was “plugging back in” the Dioriga Gas FSRU by providing official project updates for the first time in three years, while keeping its cards close regarding the final investment decision, which appears to be moving one step closer following today’s agreement.
Specifically, through an announcement on the project website titled “status revision,” Dioriga Gas outlined three priority areas currently being worked on by the implementation entity: First, the entry of new “players” with the Mercuria MoU moving precisely in this direction, second securing “third party access exemption” (Third Party Exemption) from the Regulatory Authority for Energy, Waste and Water (RAE), and third obtaining marine works permits.
Project benefits
The same announcement emphasized that “The Dioriga Gas FSRU will bring LNG imports of 21-24 TWh, an amount corresponding to approximately 30% of the Greek market, as well as additional storage capacity of 177,000 cubic meters in Southern Greece, increasing related capacity by 45%.”
Additionally, it was highlighted that the project is being re-promoted at a time when Greece is strengthening its role as a regional LNG hub, covering a deficit of 2-6 billion cubic meters annually – 2 billion cubic meters for Greece alone and 6 billion cubic meters including exports – following complete independence from Russian natural gas, from 2027 onwards.
