DESFA becomes shareholder in FSRU unit in Alexandroupolis

DESFA on Wednesday signed an agreement with Gastrade to buy 20 pct of the company’s equity capital, becoming a shareholder in the floating LNG terminal in Alexandroupolis. The agreement was signed in Athens by Gastrade founder, shareholder and chairman Elmina Kopelouzos and the executive officer of DESFA Nicola Battialana. The signing ceremony took place in the presence of Minister of Environment and Energy Kostis Hatzidakis.  

This agreement, which is subject to the approval of the competent Greek and/or European authorities, is the result of a very thorough due diligence, on all  financial, commercial, legal and regulatory aspects of the project. The construction of this facility will actively contribute to the security, liquidity and efficiency of Greece’s energy system and will strengthen the strategic role of the country in SE Europe, offering opportunities for new gas exports to the region.

The FSRU will be located 17.6 km southwest of the port of Alexandroupolis and will have an LNG storage capacity of up to 170,000 cubic meters and a natural gas sent out capacity that will exceed 5.5 billion cubic meters per year. The floating unit will be connected to the National Natural Gas System of Greece via a 28km-long pipeline, through which the regasified LNG will be transmitted to the markets of Greece, Bulgaria and the wider region, from Romania, Serbia and North Macedonia to Hungary, Moldova and Ukraine.

As Energy Minister Hatzidakis, commented, “The FSRU Alexandroupolis project strengthens Greece’s position as a natural gas transit hub for the entire Southeastern Europe. The construction of this new terminal over the next years will constitute one of the most important success stories of our energy policy. At the same time, this development illustrates – despite the difficult times we are living in – the renewed trust of international investors in our country, given that the majority of DESFA’s shares belong to companies from Italy, Belgium and Spain.”

CEO of DESFA, Nicola Battilana, said: “We are proud that in this particular socio-economic situation, DESFA is ‘present’ and invests in important projects for Greece and the region. The FSRU Alexandroupolis is another important vehicle on the road of energy transition, of which DESFA is an enabler, while it will bring the country to the epicenter of energy developments. We are committed with our know-how to contribute to the successful operation of the project.”

Gastrade’s Managing Director Konstantinos Spyropoulos added: “We are happy to have DESFA as a partner in the project. Today’s signing of the agreement is to the mutual benefit of both our companies and most importantly to the benefit of the consumers in SE Europe. We are looking forward to taking advantage of DESFA’s significant experience in managing and operating gas infrastructure and maximise the synergies between our Terminal and Revithoussa. We are confident that we will have a very constructive cooperation in strengthening the energy security of our region”.