“This large investment is set in motion with the ultimate goal of turning our country’s easternmost European port into a global energy hub”, said the Prime Minister in his greeting during the signing ceremony for the participation of Bulgarian company Bulgartransgaz in the Alexandroupoli Liquefied Natural Gas Terminal project.
The Prime Minister welcomed his Bulgarian counterpart Boyko Borissov, who attended the ceremony in Zappeion Megaron and also greeted the event.
Kyriakos Mitsotakis pointed out that “the benefits are also geopolitical: The new axis leads to a differentiation of natural gas routes not only for Bulgaria, but for Central Europe as well which will no longer depend on one single source of energy”.
The floating Liquefied Natural Gas (LNG) reception, temporary storage and re-gasification unit will become a new, independent gateway for natural gas to the South-eastern and Central European markets. It will be installed 17.6 km southwest of the port of Alexandroupolis, and will have a storage capacity of 173,000 cubic metres and a natural gas throughput capacity of over 5,5 bcm per year. The floating unit will be connected to the National Natural Gas System via a 28 km long pipeline, through which the re-gasified LNG will be transmitted to the markets of Greece, Bulgaria and to the entire Southeast and Central Europe.
The full speech of Prime Minister Kyriakos Mitsotakis follows:
“We are meeting again, dear Boyko, here in Athens seven months after our last, extremely constructive meeting in Alexandroupolis. Since then, a lot has happened, a lot has changed on the pandemic front, but – as we can see from the developments- the initiatives undertaken then have been implemented according to schedule. At the time, the Liquefied Natural Gas Terminal was at the initial preparation stage.
Today, with Bulgartransgaz’s formal participation in the project and the signing of the agreement between shareholders, this large investment is set in motion with the ultimate goal of turning our country’s easternmost European port into a global energy hub. This 170,000-cubic metre offshore terminal will be installed 18 km southwest of the port of Alexandroupolis. The gas arriving at the terminal in liquid form will be re-gasified and meet the national natural gas network via a 24 km long pipeline. From there, through a series of new interconnectors, it will be transmitted -late 2022, early 2023- to Greece, Bulgaria, and across Southeast and Central Europe, as you can see on this very detailed map.
The first-rate technical specifications of this pioneering project for the Balkans are only matched by the size of the investment: The budget is almost 400 million euros, 383 million to be exact. Gastrade is the project owner, and, after today, its shareholders, apart from DEPA, will also include Bulgartransgaz. In other words, this is a transnational public-private partnership yielding results well beyond national borders. The truth is that this endeavour required the intervention of many Ministries and Public Agencies. Nevertheless, despite its complexity and the disturbances caused by the pandemic, it is moving forward without any hint of delay.
Let us not forget that this is but a link in a greater chain. Along with the upgraded Revithoussa LNG terminal, the Underground Natural Gas Storage Facility in South Kavala, and TAP, it establishes one of the first links in the so-called Vertical Energy Corridor. So, along with IGB, the Greece-Bulgaria pipeline, and the Nea Santa-Maritsa East power interconnector, this project strengthens the bilateral and Balkan co-operation, and vests it with a European character.
Certainly, as we have discussed on numerous occasions with my friend Boyko, this new floating terminal and the pipeline are of paramount importance for the IGB project, as they secure natural gas supply, thus also ensuring its economic viability. Furthermore, my friend Boyko, the recent ratification of the relevant agreement by the Bulgarian Parliament paves the way for rapid implementation. This way, our gas will reach yet another friend, Romania, via Bulgaria. In other words, the clean and cheap energy generated by natural gas is spreading across the Balkan peninsula.
I believe it is needless to stress the benefits of not relying on dirtier and more expensive energy sources. May I just recall that Greece is in the process of implementing an extremely ambitious plan for lignite phase-out by 2028 at the latest, and large-scale use of Renewable Energy Sources. National policies, however, need to be framed by commensurate transnational partnerships, and I am confident that this investment is a precursor of continuing and ever-closer cooperation with Bulgaria in RES and energy as a whole.
The benefits are obviously geopolitical, as well. The new axis leads to a differentiation of natural gas routes not only for Bulgaria but also for Central Europe, which will no longer depend on a single source of energy. On the other hand, the choice of Alexandroupolis as the site for the new terminal will strengthen its geopolitical role as an energy hub in the broader region, and will, obviously, increase the number of seagoing vessels arriving at the port.
At this point, allow me to highlight the leading position of Greek shipping industry which owns over 16% of LNG carriers. This investment is also bound to shore-up the dynamic growth of Eastern Macedonia and Thrace. And when frontier regions thrive, then the whole of Greece thrives; and when benefits are multiplied, they are disseminated to our neighbours. With this investment, Alexandroupolis opens up its gates to liquefied natural gas from many diverse suppliers, including the United States that has expressed its strategic interest to further develop the port.
Dear Boyko, the port of Alexandroupolis is celebrating its 150th anniversary this year. With this new terminal, it is becoming a hub of co-operation, as well as a source of wealth and prosperity for our countries and our peoples. In past centuries, this port was the object of conflict. Today, it is an example of how far peaceful co-existence and economic co-operation can take us, for the benefit of not only our two peoples but the broader Balkan region, as well.
Again, congratulations on your decision to join this investment and I look forward to meeting again at the official inauguration of the investment, after it is completed”.
After the end of the event, the Prime Minister hosted a dinner in honour of the Bulgarian Prime Minister and the two delegations.
