Greek authorities have effectively abandoned plans to build several terminals to receive liquefied natural gas (LNG), which the republic would have supplied to the Balkan countries , Ukraine and Moldova, writes newspaper Handelsblatt.
The Greek authorities planned to build a network of five LNG receiving terminals and pipelines for its further export. In total, this infrastructure will allow the import of 25 billion cubic meters. m of gas, which is four times more than the needs of the Greek domestic market. The newspaper called the plan “ambitious”, but now, the publication notes, it has been “buried without noise”.
In support of this claim, the newspaper cited written responses by Environment and Energy Minister Theodoros Skilakakis to parliamentary questions about the plan to build an LNG terminal in the port of Volos. “Our capacity to [receive] LNG is more than sufficient,” he said.
The minister also added that now the investments in the project “have no chance of realization” for economic and political reasons. Among the latter, he expressed the dissatisfaction of the local population with the plans to build terminals.
The publication attributed economic reasons to the fact that the only operating Revitus terminal near Athens, which received 60% of LNG imports in recent years, is now “not even close to filling”. It took no delivery in April for the first time in five years and is not expected to receive any in August. A tendency to reduce the role of Greece as a gas supplier emerged in the first quarter of this year - exports to the Balkan countries decreased by 95% compared to the same period last year.
In this regard, the newspaper believes that it is “increasingly unlikely“ the terminals to ever be built. The main factor that led to the reduction of the role of LNG was the supply of cheaper Russian natural gas. Despite the fact that in 2022 Greece reduced imports from the Russian Federation, now its share is increasing, in May it represented 64.1% of all gas imported into the country. Greece is no exception in this regard, as Hungary and Austria also import significant quantities of Russian gas. “If Greek LNG terminals and pipelines are not built, southern European countries will be forced to continue buying Russian gas”, the newspaper concludes.