Countdown to commercial ops at European LNG terminal underway

Based on a floating storage and regasification unit (FSRU), Greece’s first offshore liquefied natural gas (LNG) terminal, which is expected to secure low-emission energy while enhancing Southeastern Europe’s diversification of gas sources, is fast approaching its commercial operations date, with less than two weeks left until start-up.

Following the completion of all commissioning tests, the Alexandroupolis, the former 153,500-cubic-metre LNG carrier GasLog Chelsea built in 2010, which is said to be the first FSRU conversion project under the Greek flag for operation in the Aegean Sea, is scheduled to begin commercial operations on October 1, 2024. This was previously slated for the beginning of 2024.

“The imminent commencement of operations at the LNG Alexandroupolis Terminal marks the completion of a project with prominent European, national and local significance. The project will enhance Greece’s leadership role in energy and will contribute to the diversification of gas resources, to the energy security and the establishment of a liquid regional gas trading hub in Southeast and Central Europe,” explained Gastrade.

Owned by GasLog, a partner in the Gastrade consortium that operates the DNV-classed terminal off the coast of Greece, the vessel entered Seatrium’s shipyard in Singapore in early February 2023 for the regasification equipment to be installed, much of which was assembled in advance, and was scheduled to exit the yard in November 2023.

After the ten-month conversion, the unit sailed away from Singapore on November 26, 2023, and entered the waters of the Thracian Sea on December 7, 2023. Upon its arrival in Greece, the FSRU was anchored through a spread 12-point mooring system.

The commissioning cargo was delivered in February 2024 onboard GasLog’s Hong Kong LNG carrier to the FSRU, which was anticipated to be connected to the country’s National Natural Gas Transmission System via a 28-kilometer-long pipeline developed by Corinth Pipeworks, a steel pipes segment of Cenergy Holdings. 

Two months after Saipem finished its pipelaying job related to the Alexandroupolis LNG terminal in August 2023, the European Commission gave its seal of approval for a €106 million Greek measure to support the completion of the construction of Gastrade’s DNV-classed liquefied natural gas terminal in Alexandroupolis.

This FSRU is expected to support Gastrade’s expansion to a second one, which is anticipated to have roughly the same technical capacity and could begin operating in 2025, based on a previous timeline. The Alexandroupolis LNG terminal will strengthen the perspective of the Vertical Corridor Initiative and curb the region’s dependence on natural gas delivered through a single, land-based pipeline. 

With an annual regasification capacity of around 5.5 billion cubic meters, most of the FSRU project’s gas is anticipated to be exported to Bulgaria and Romania, as energy demand in Southeastern Europe is forecast to continue to be met with fossil fuels for several decades.

Gastrade has inked a five-year deal with Venture Global to secure LNG supply for markets in Central and Eastern Europe (CEE) from the U.S. player’s Louisiana terminals.

This agreement will bring approximately 25% of the total terminal capacity or around 12 cargoes per year to the Alexandroupolis LNG receiving terminal from 2025.