The European Commission has approved funding worth over €100 million ($105 million) to support construction of Greece’s Alexandroupolis floating liquefied natural gas terminal, which is scheduled for completion by the end of this year.
Greek authorities will deploy the funding in the form of a direct grant, which was approved by the EC under state aid rules.
The cash injection, totalling €106 million, will add to a previous €166.7 million tranche of funding that Greece devolved to the project in 2021, also under state aid regulation.
The Alexandroupolis LNG terminal will consist of a floating storage and regasification unit with capacity of 5.5 billion cubic metres per annum of gas.
The project is included in the European Union list of Projects of Common Interest (PCI).
The additional funding will be directed to Gastrade, the special purpose company set up to develop the project.
Gastrade is owned by Bulgarian gas transmission system operator Bulgartransgaz, Greek gas supplier DEPA, Greek infrastructure investor Copelouzos Group and Cyprus-based GasLog, all with equal stakes of 20%.
The EC was notified by Greek authorities of the additional aid to support the completion of construction of the terminal by the end of 2023, as scheduled.
The authority said the project is “needed to secure gas supply for Greece and the South-Eastern Europe region” and align with the European goal of diversifying sources of natural gas supply to the EU, following the disruption of Russian pipeline gas imports.
At the time of the first tranche of public funding in 2021, EC Executive Vice President Margrethe Vestager, in charge of competition policy, said Greece’s support measure “limits the aid to what is necessary to make the project happen”.
Earlier this summer, the EC had already approved €40 million in state aid that Germany will be allowed to deploy to develop an onshore LNG terminal in the northern port town of Brunsbuttel, where one FSRU started operating in January.