Greece declares its volition to go a cardinal energy hub successful Europe, strengthening its relation successful supplying natural gas to the Balkans, Central and Eastern Europe.
The corresponding people was confirmed by the President of the state K. Tasoulas astatine the summit of the European Political Community, which takes spot today May 4 successful Yerevan. According to him, the existent geopolitical instability — including conflicts successful Ukraine and the Middle East — requires EU caller sustainable vigor solutions.
The cardinal constituent of the strategy is the task Vertical Gas Corridor (VGC)which should turn Greece into a halfway for the import and transit of vigor resources.
What is the project
- connects the state transmission systems of Greece, Bulgaria, Romania and Hungary;
- is considered arsenic an alternate to Russian state supplies;
- has the status Project of Common Interest (PCI) since 2013;
- includes cardinal infrastructure facilities:
- interconnector Greece – Bulgaria (IGB);
- Trans Adriatic Pipeline (TAP);
- LNG terminal Revithoussa LNG;
- terminal Alexandroupolis LNG (FSRU);
- underground state storage South Kavala.
The main sources of state should be:
- Azerbaijani state done TANAP And TAP;
- liquefied earthy state (LNG) supplied done Greek terminals.
The relation of Ukraine successful the project
Ukraine is considered arsenic an important constituent of the system owed to its capabilities underground state storage facilities (UGS)located adjacent the western border.
However, the country’s infrastructure is regularly attacked, which requires important concern to reconstruct it and reduces the reliability of the route.
Three supply routes
- Route 1 — LNG supplies done Revithoussa and Bulgaria on the Trans-Balkan corridor;
- Route 2 — via Alexandroupolis LNG and IGB;
- Route 3 — Azerbaijani state done TAP and IGB.
Key issues of the project
- low involvement from vigor companies;
- high outgo of transportation, adjacent taking into relationship discounts of up to 46%;
- limited capableness successful the Ukrainian direction;
- competition with cheaper routes done Central Europe;
- military risks to infrastructure.
According to experts, the supply imaginable for VGC is astir 5 cardinal cubic meters per yearwhich is importantly little than the erstwhile volumes of Russian state supplies.
Editorial comment
Greece relies connected geography – but the marketplace lives by antithetic laws.
The thought of turning the state into a state hub looks logical: an advantageous location, entree to LNG and alternate sources. However, successful practice, the task faces classical constraints – cost, infrastructure and demand.
VGC’s main occupation is not politics, but economics. If transportation is much costly than alternatives, businesses simply will not use this route, careless of governmental declarations.
An further origin is dependence connected unstable regions, including Ukraine, where infrastructure is under changeless pressure.
As a result, Athens’ ambition remains much of a strategic statement than a working system. The existent status of a state hub is determined not by statements, but by pumping volumes – and present the task still has superior limitations.
Greek (GR) · 
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