Changes to the energy map of the Eastern Mediterranean and Southeast Europe are coming in the near future with Greece’s signature, through five Greek business projects with cross-border character.
The plans to establish the country as an energy supply gateway for the region gained new momentum after agreements signed with the participation and presence of representatives from the government and energy sector of the USA on November 6-7 within the framework of the Ministerial Meeting of the Partnership for Transatlantic Energy Cooperation (P-TEC) in Athens.
The five projects changing the energy map of Southeast Europe and Eastern Mediterranean with Greece’s signature
These are:
- The “vertical” supply corridor for regional countries with natural gas originating from Greece.
- The long-term agreement for importing liquefied natural gas (LNG) from the USA and corresponding re-export agreements to the region.
- The electrical interconnection between Greece and Egypt.
- The proposal for supplying Cyprus with natural gas from Israel’s deposits.
- Drilling in the Ionian Sea to explore natural gas “targets.”
Environment and Energy Minister Stavros Papastavrou in statements to APE regarding the business agreements achieved at P-TEC emphasizes: “The 6th Summit of the Partnership for Transatlantic Energy Cooperation (P-TEC), completed a few days ago in Athens, left a strong geopolitical footprint for our country and for the entire Eastern Mediterranean. It was a meeting not of words and declarations, but of concrete agreements and decisions in the energy sector, with results that have immediate and future value.
We leveraged our homeland’s unique geographical position, our infrastructure, the clear commitment of the European Union and the United States to reduce dependence on Russian natural gas, as well as our country’s political and economic stability. Thus, we made our country a gateway for American LNG into Europe and a secure starting point for the new development corridor towards northeastern and central Europe, while simultaneously limiting Turkey’s role in the new energy map.
In this journey, Greek energy companies stood as equals and with absolute competence alongside the largest international energy giants, confirming their reliability and expertise. During P-TEC, they signed contracts of great and multi-level value, for today’s energy map and for the energy orientation of the next decade.
From now on, we have even more work. We must implement, with consistency and speed, all the agreements we achieved, further strengthening the Central Artery of Development and Stability for our region and for all of Europe.”
The business projects
Specifically, the business projects are as follows:
1. Vertical corridor: Within the P-TEC framework, the Natural Gas Transmission System Operators of Greece, Bulgaria, Romania, Moldova, and Ukraine jointly signed a request to national energy regulatory authorities, seeking approval to launch two new cross-border products, Route 2 and Route 3. These respectively refer to the supply corridor starting from the Alexandroupolis Floating LNG Terminal and the Trans Adriatic Pipeline (TAP), while Route 1, which has already received regulatory approval, starts from the Revithoussa LNG terminal. Approval of the new routes combined with the Operators’ decisions to reduce “tolls” (tariffs) for natural gas transit and necessary enhancements to the network’s transmission capacity will enable larger quantities of natural gas to transit through Greece, replacing Russian natural gas that according to EU decisions will stop flowing to member countries by the end of 2027. They will also allow for Ukraine’s natural gas supply.
2. LNG from the USA: Within the same session, ATLANTIC – SEE LNG TRADE (joint company of AKTOR Group and DEPA Commercial) signed an agreement with American Venture Global for the supply of 0.5 to 1.5 million tons of liquefied natural gas annually from the USA for 20 years starting from 2030. This is the first long-term LNG supply agreement with a supplier from the United States, specifically one of the largest LNG producers in the USA. Additionally, ATLANTIC – SEE LNG TRADE signed Memoranda of Understanding for a twenty-year period, also from 2030, for LNG sales with Ukrainian Naftogaz (up to 0.7 million tons annually), as well as with Romanian companies NOVA POWER & GAS S and Transgaz for quantities up to 1.4 million tons annually.
3. Electrical interconnection with Egypt: This involves an interconnection of 3,000 megawatts capacity, with the project including renewable energy units (wind and solar) of 9.5 gigawatts capacity in Egypt. Developed by Elica Interconnector of the Kopelouzos Group, it is currently in the study phase for precise seabed mapping. Group sources reported that 60 Greek industries have signed agreements to purchase electricity from the interconnection. It’s noted that one-third of the energy will be destined for re-export.
4. Natural gas supply to Cyprus: Outside Greece but of Greek interest is the proposal by Greek-owned Energean to supply Cyprus with natural gas from Israel’s deposits that it manages. According to the proposal addressed to the governments of Cyprus and Israel, Energean will construct a new submarine pipeline connecting the floating production storage and offloading unit (FPSO) “Energean Power,” operating in Israeli waters, directly with Cyprus. Israel’s Energy and Infrastructure Minister Eli Cohen supported the project, stating that “Selling natural gas to Cyprus will strengthen Israel’s international position in the region and Europe, contribute to stability and prosperity, and generate significant revenue for the state.” The gas would come from the Israeli Katlan field.
5. Drilling in the Ionian Sea: Implementation of the $100 million drilling in “block 2” west of Corfu represents a realistic prospect following the agreement for ExxonMobil’s entry into the consortium holding exploration rights in the area, acquiring shares from Energean and Helleniq. Implementation of the drilling will depend on results from re-evaluating seismic data from the area, and if results are positive, decisions will follow for production drilling and installation of required pumping, processing, and natural gas transportation equipment, with investment costs around $5 billion. Discovering hydrocarbons in commercially exploitable quantities in Greece would constitute a turning point for the country and for the EU to the extent that quantities in this specific block and other concessions can cover a significant portion of energy needs.
Also on the table is the Greece-Cyprus-Israel interconnection (Great Sea Interconnector) for which agreement was reached to update studies and attempt to find new shareholders to participate in the investment.
Source: APE-MPE
