A proposed floating storage and regasified unit-based liquefied natural gas import project in Greece has moved a step closer to coming to fruition.

Greece’s gas transmission system operator and Revithoussa terminal operator DESFA has signed an agreement with Motor Oil company Dioriga Gas for Motor’s planned FSRU project in the Gulf of Corinth.

The companies have signed a reservation of capacity agreement for the construction of the connections between the FSRU and DESFA’s gas grid.

Motor Oil envisages installing the LNG receiving and regasification terminal near to its refinery in Corinth, west of the Greek capital Athens.

The FSRU, which is set to have annual capacity of up to 2.6 billion cubic metres of gas, is targeting operational start-up in 2023.

Are you missing out on ACCELERATE?
Gain valuable insight into the global oil and gas industry's energy transition from ACCELERATE, the free weekly newsletter from Upstream and Recharge.

DESFA chief executive Maria Rita Galli said the deal marks a step forward for a new gas import infrastructure project that would further enhance the role of Greece as Southeast Europe’s international energy hub.

“DESFA ensures open access to the national natural gas system, steadily fostering the development of competition in the Greek energy market, with significant benefits for the country, the Greek economy and the final consumer,” she said.

New venture: Motor Oil's Corinth LNG import project comes on the heels of Gastrade's delayed Alexandroupolis FSRU scheme Photo: AP/SCANPIX

Motor Oil — which has a natural gas supply portfolio corresponding to 10% of the Greek natural gas market — is addressing industrial and large commercial consumers for their natural gas supply needs, according to a statement on the company’s website.

Meanwhile, Gastrade is pursuing its planned Alexandroupolis FSRU-based LNG import facility in Greece, which is also targeting commercial operations within two years’ time.

This proposed LNG import scheme centres on a 5.5 Bcm capacity floater to be deployed near Alexandroupolis in north-eastern Greece.

DESFA, owned by a consortium led by Italy’s Snam, last year purchased a 20% stake in Gastrade. Other consortium partners include Bulgartransgaz, DEPA and Gaslog that will supply the FSRU.

Greece currently imports LNG via one onshore facility — the Revithoussa on the islet of Revithoussa, in the Gulf of Pachi at Megara, 45 kilometres west of Athens — which supplies regasified volumes to the National Natural Gas Transmission System.

With storage capacity of 225,000 cubic metres of LNG and regasification capacity of 1250 cubic metres per hour a sustained maximum send out rate, the terminal provides security of energy supply, operational flexibility in the transmission system and increased capability to meet Greece’s peak gas demand.