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    EU backs Greek LNG project with $200mn grant

Summary

The EC said its aid was appropriate and necessary and would not distort competition.

by: Joseph Murphy

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EU backs Greek LNG project with $200mn grant

The European Commission (EC) has signed off on a €166.7mn (US$199mn) grant for Greece's plan to build a second LNG import terminal, saying the project will improve the security and diversification of energy supplies in southeast Europe.

The EC said its aid was appropriate and necessary and would not distort competition. The funds will be received by Gastrade, a consortium between Greece's Copelouzos and DEPA and Bulgaria's Bulgartransgaz.

"The new LNG terminal in Alexandroupolis will improve gas supply and infrastructure not only in Greece, but in the whole South Eastern European region," the EC's executive vice-president Margrethe Vestager, commented. "This will contribute to achievement of the EU's goals in terms of security and diversification of energy supply. The Greek support measure limits the aid to what is necessary to make the project happen and sufficient safeguards will be in place to ensure that potential competition distortions are minimised."

The LNG terminal will be built near Alexandroupolis and will have a regasification capacity of 5.5bn m3/year and a storage capacity of 170,000 m3.  It is expected to start operations in 2023, joining Greece's existing LNG terminal in Revithoussa, pending a final investment decision.