Experts say declining demand, low-priced Russian gas weaken Greece’s LNG hub desires
(MENAFN) Greece's ambitions to become a major liquefied natural gas (LNG) hub in Europe and expand its LNG capacity have faced significant challenges due to declining demand and the impact of low-priced Russian gas, according to experts. Ana Maria Jaller-Makarewicz, an energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), noted in an interview with Anadolu that Greece's aspirations to be a key Natural gas supplier for Europe have been hampered by lower-than-expected demand for its LNG re-exports.
Jaller-Makarewicz highlighted that despite a 31 percent year-on-year increase in Greece's gas consumption from January to May, the country’s LNG exports have fallen. This decline is attributed to Bulgaria's decision to increase gas imports from Türkiye, which led Greece to reduce its LNG imports by 38 percent year-on-year in the first half of 2024. Data from Greek gas-grid operator Desfa supports this, showing a sharp reduction in LNG tanker arrivals at the Revithoussa terminal, Greece's sole LNG facility. The number of vessels docking at the terminal has plummeted from 26 in the same period last year to just 12 this year.
The Revithoussa terminal, which has a capacity of 7 billion cubic meters (bcm) per year, is operating at a low average utilization rate of 24 percent, according to Jaller-Makarewicz. This level of usage is sufficient to meet domestic demand and still provide surplus capacity for exports. Despite this, Greece’s plans to develop additional LNG infrastructure face uncertainty. Costis Stambolis, executive director of the Athens-based Institute of Energy for Southeast Europe (IENE), mentioned that not all planned LNG terminals will proceed, even though they have the necessary permits and have navigated the regulatory process.
Among the planned developments, Athens' first floating storage and regasification unit (FSRU), the Alexandroupolis, is undergoing testing and is expected to start commercial operations between September and October. However, the launch of the Alexandroupolis FSRU, with a capacity of 5.5 bcm per year, has been delayed from mid-June to around October. Despite the decrease in LNG imports, Stambolis indicated that companies remain interested in maintaining and expanding infrastructure to accommodate future growth, contingent on global market conditions and pricing.
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