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Expected Gas Sourcing
LNG (LNG), The pipeline will be fed with regasified LNG from the floating unit (LNG-N-062) -hence it means various sources.
Comments about the Third-Party Access Regime
It is not planned to run a formal Market Test as the Project has not applied for a TPA Exemption and Project's commercial viability will be determined by the success of the
negotiations with potential gas offtakers and/or interested LNG suppliers who have interest in using the infrastructure.
Benefits
Main Driver
Market Demand
Main Driver Explanation
Main drivers: 1. Expressed requirement for diversification of supply sources and routes for SEE markets (Bulgaria, Serbia, FYROM, Romania, Hungary)
creates market / demand opportunities for the project 2. Regional demand growth
Benefit Description
LNG terminal in northern Greece will: Secure new natural gas quantities for the supply of the Greek and the SE European markets, hence enhancing the
security of supply of these markets. Diversify the supply sources and routes in particular with regards to markets with limited supply options (Bulgaria,
Serbia, Romania, FYROM, Hungary, Ukraine) and to this extent lift existing isolation with an aim to reduce dependency on Russian gas while provide access
for new gas findings in the East Med basin to the markets of SEE. Support the South Corridor project(s) by providing alternative/additional supply
quantities when/if required and the interoperability of systems and the creation of a regional gas trading hub. The Project technical design will include
provision for LNG-reloading ability for the purpose of supporting LNG bunkering activities or regional distribution of LNG to remote island locations for
power generation and other industrial and commercial activities.
Delay Explanation
Delays in permitting phase: competent authorities delayed in issuing the required licenses. In the case of Access to shore, seabed & sea area,
there was a delay of 9 months in order to decide how the existing legislation would apply specifically to the Project. In the case of issuance of
the Installation Act & Installation license, the main delay was due to the requirement for the introduction of a legislative change necessary to
grant the RoW for the onshore pipeline. Other reasons: complex economic & political situation in Greece, in particular, in the 2H2015 (e.g.
capital controls). Also, GASTRADE entered into discussions with Public Gas Corporation of Greece (DEPA) for the participation of the later in the
Project. (The EC was duly informed on this since 06/2015). However, the finalization of DEPA's participation in the Project was delayed due to
political developments in Greece and administrative changes with DEPA. This caused delay in execution of FEED & reaching FID.
Barriers
Barrier Type
Description
Regulatory
If tariff levels for the Project do not enjoy the same regulatory regime as the one applied for other competitive regulated infrastructures in the area, then
the Project will become commercially unattractive to potential regional offtakers and therefore financially not viable.
Permit Granting
See above. Delays in Permit granting have led to delays in Project implementation.
Political
No political barriers. On the contrary, there is clear and declared Political support for the Project from the impacted Member States and in particular from
the governments of Greece and Bulgaria. Political stability in the region of the Project's direct influence will support commercial viability of the Project.
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Current TYNDP : TYNDP 2017 - Annex A