Greece as an energy hub: Pipelines close, LNG ships arrive

This modulation is much than a commercialized adjustment; it represents a geopolitical reshaping that redefines Greece’s relation arsenic a cardinal vigor hub successful Southeast Europe. While it presents economical challenges and costs, it besides opens up caller concern opportunities.

Increased Activity Around LNG and US Partnerships

In caller months, this large vigor displacement has been accompanied by heightened enactment successful Athens. High-level US officials person been gathering with the Greek authorities and starring Greek vigor entrepreneurs, with American liquefied earthy state (LNG) astatine the halfway of discussions.

Washington views Greece not conscionable arsenic a purchaser but arsenic a strategical partner, channeling caller LNG flows to Europe to gradually regenerate Russian gas. From the LNG terminals astatine Revithoussa and Alexandroupoli done the Balkans to Central Europe, Greece is emerging arsenic a captious subordinate successful the continent’s caller vigor map.

US LNG Leads the Market

Since 2020, US LNG has steadily gained crushed successful Greece, marking an awesome upward trend. Of the astir 7 cardinal cubic meters of LNG Greece consumes annually, astir 3 cardinal cubic meters present travel from the US, dominating the market.

According to DESFA (the Greek state strategy operator), LNG already covers 40% of Greece’s full earthy state imports, with 88% of that LNG coming from the United States, which has go the ascendant supplier.

Greece besides imports smaller LNG quantities from Nigeria (5%), Norway (5%), and Algeria (2%), which erstwhile was the main LNG supplier to Greece. Meanwhile, pipeline imports done Sidirokastro (from Russia) inactive relationship for 45% of full supplies, with the Trans Adriatic Pipeline (TAP) bringing Azerbaijani state representing astir 10-12%.

LNG Exports to Northern Europe

Greece is solidifying its presumption arsenic a strategical earthy state hub successful Southeast Europe, arsenic LNG exports northwards go progressively important for diversifying European vigor flows.

The alleged Vertical Corridor aims to fortify vigor information and diversify state sources successful the region, allowing bidirectional state travel from southbound to north. This corridor connects Greece to Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine, integrating existing and caller European state and LNG infrastructure.

The US is highly invested successful this task since Greece’s state web is the main gateway for American LNG into the Balkans and Eastern Europe. Currently, Greece’s nationalist LNG capableness exceeds 10 cardinal cubic meters annually done the Revithoussa terminal and the Alexandroupoli Floating Storage and Regasification Unit (FSRU).

DESFA plans to instantly summation export capableness to Northern Europe from 6 to 8 cardinal cubic meters per year. A caller compression presumption successful Komotini, acceptable to unfastened soon, supports this goal.

New Deals and Strategic Partnerships

Washington’s ambition is to flood Europe and Greece with American LNG. This was reinforced during Interior Secretary Doug Bergam’s caller sojourn to Athens. He volition instrumentality soon to be the Transatlantic Energy Cooperation Summit (P-TEC).

Athens is pursuing a flexible procurement strategy, with shorter-term agreements to support adaptability for aboriginal choices. Nonetheless, partnerships betwixt Greek and US companies are already underway and expected to intensify.

Upcoming High-Level Energy Summit successful Athens

Next week, Greece volition big ministers of vigor from 25 countries, including Poland, Hungary, Romania, Ukraine, the Czech Republic, Slovakia, Bulgaria, Slovenia, Austria, Germany, and Greece’s ain Minister of Environment and Energy, alongside 400 invited guests.

The US delegation volition see Energy Secretary Chris Wright, Interior Secretary Doug Bergam, and Deputy Secretary of State for Management and Resources Michael Rigas.

Bilateral high-level meetings betwixt Greek and American companies volition absorption connected LNG proviso and transport to Greece and Southeast Europe.

Strong Private Sector Presence

Leading backstage companies specified arsenic Google, Amazon, ExxonMobil, Baker Hughes, Venture Global LNG, ConocoPhillips, Cheniere, Excelerate Energy, and Woodside Energy volition enactment successful the concern forum, discussing investments successful infrastructure, technology, and strategy resilience.