Greece's Desfa to front-load gas grid expansion plans
Greek transmission system operator Desfa plans to complete nearly all the gas projects in its updated 10-year development plan (TYDP) within the next three years.
Desfa's projected spend on all projects comes to over €1.37bn, of which €1.34bn would be used within the next three years. The most important of these projects are presented below, split by category.
Interconnectors
Desfa expects the 1.5bn m³/yr Greece-North Macedonia interconnector to start commercial operations in January 2026, a delay of roughly a year from the timeline it gave in October 2023.
The pipeline will run from Nea Messimvria — where Azeri gas enters the Greek grid — to Gevgelija and will cost around €92mn.
LNG terminals
The connection of the Dioriga LNG terminal will start commercial operations in December 2026, according to the latest TYDP, 1½ years later than previously envisaged.
Desfa expects to reach a final investment decision (FID) on a metering and regulating station to connect the planned Dioriga LNG terminal in February 2025.
Developer Motor Oil Hellas recently told Argus it plans to make FID on the project by the end of this year. The project will cost Desfa around €21mn and will be financed through connection fees. The new entry point will have a capacity of around 11.8mn m³/d, or 4.3bn m³/yr.
Desfa expects a new small-scale jetty already under construction at Revithoussa to start commercial operations in December 2025. The €38mn project will enable ships with capacities of 1,000-30,000m³ of LNG to unload and reload.
And Desfa has also taken FID on a compressor station for Revithoussa, which will allow for boil-off gas to be sent into the transmission system rather than flared. Commercial operations are envisioned to start in May 2025.
No mention of grid connections for the Argo floating storage and regasification unit or Thessaloniki LNG projects were included in the TYDP, throwing their future into further doubt following recent delays.
Power plants
Desfa included multiple pipeline connections to gas-fired power plants in the TYDP.
The operator expects the 877MW Thermoilektriki Komotinis plant's connection to the grid to start commercial operations in October. It will have a capacity of around 3.4mn m³/d, or 1.24bn m³/yr. The project's operators expect test operations to begin this autumn.
Another project will connect Elpedison's planned 826MW plant near Thessaloniki, with a capacity of around 1.14bn m³/yr. Desfa envisions commercial operations beginning in November 2025.
A third project would connect to an 840MW plant at Alexandroupolis and start commercial operations in May 2027. Lastly, Desfa expects a project connecting the 873MW Larisa Thermoelectriki plant to start commercial operations in mid-2027. Pipeline capacities for these two projects were not disclosed, but would likely be similar to the first two.
Compressor stations
Several compressor station plans have been delayed, notably at Komotini and Ampelia.
The two expansion phases at Komotini have been pushed back by six months to March and June 2025, respectively, because of delays during the permitting process. The project will increase the system's "technical adequacy", as well as its capacity, according to Desfa.
And Desfa expects the compressor station at Ampelia, a crucial part of enabling higher north to south transmission, to start commercial operations only in June 2025. The nine-month delay is because of "extreme weather events" in the area in 2023.
And a booster compressor for the Trans-Adriatic pipeline at Nea Messimvria — which will enable fully bidirectional flows — is scheduled to start commercial operations in December 2025. Permitting delays have pushed back the start date by more than a year.
Domestic grid
Several large projects are also in the works to expand the domestic grid.
Desfa plans a 145km pipeline to connect the city of Patras and its industrial area to the grid, expecting FID in June 2025 and the start of commercial operations in March 2027. The pipeline will have a capacity of around 240mn m³/yr, but with the possibility to be doubled if demand is sufficient.
Desfa is also planning a 157km pipeline to connect west Macedonia and a metering station at Kardia-Kozani, with a planned capacity of around 440mn m³/yr. This project will help to enable gas supply to district heating installations in the area, Desfa said. Desfa has taken FID and expects commercial operations to start in June 2025.
And Desfa's most expensive plan, at €311mn, will duplicate the 215km main transmission line from Karperi to Komotini. This will increase capacity from north to south and aims to eliminate bottlenecks for the provision of firm capacity from new entry and exit points in the northern part of the system, as well as the provision of firm access to the VTP. This will increase liquidity and provide "equitable access to all northern exit points, and is a "priority project" for Desfa. FID is planned for June 2025, and commercial start-up in March 2027.
A related €151mn plan will duplicate the 100km Patima-Livadeia line, which will increase pressure in the system and enable firm capacity from the Dioriga Gas terminal. FID is planned for October 2025, and commercial operations in March 2027.
Related news posts
Francine set for Wednesday landfall as hurricane
Francine set for Wednesday landfall as hurricane
New York, 10 September (Argus) — Tropical storm Francine is expected to become a hurricane today, as it continues on a path north through offshore US Gulf of Mexico oil and gas production areas on its way to a Louisiana landfall Wednesday. Francine was located about 395 miles south-south west of Cameron, Louisiana, according to an 8am ET advisory from the National Hurricane Center. It is expected to remain off the coast of Texas and intensify to a Category 2 hurricane with winds of up to 100 mph, before landfall. The storm will track through an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production. Oil and gas producers started to evacuate personnel from offshore facilities earlier this week and shut in some production. Ports are starting to restrict traffic and offshore lightering operations were paused off of Galveston, Texas, starting Monday night due to high seas. Shell said late Monday it was in the process of shutting in production at its Perdido platform after earlier pausing drilling operations from the facility located about 190 miles south of Houston. Drilling has also been suspended at its Whale facility, which is not scheduled to start operations until later this year. Non-essential personnel have been evacuated from Shell's Enchilada/Salsa and Auger assets, located about 120 miles south of Vermillion Bay, Louisiana. Chevron initiated shut-in procedures for its Anchor and Tahiti platforms 190 miles south of New Orleans and began transporting all personnel from the facilities. Production from its other operated platforms in the Gulf of Mexico remained at normal levels. Non-essential staff were also being removed from the Big Foot and Jack/St. Malo platforms. ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in. So far, no major problems are expected at BP's offshore facilities in the region. Ports in the northwestern Gulf of Mexico — including the Texas ports of Corpus Christi, Houston, Galveston, Texas City, Freeport, Beaumont and Port Arthur and the Louisiana ports of Cameron, Lake Charles and New Orleans — were set at port condition Yankee today, meaning gale force winds (39-54 mph) are expected within 24 hours and inbound vessel traffic over 500 gross tons is prohibited. The US Coast Guard's captain of the port of Houston suspended lightering operations at the Galveston Offshore Lightering Area (GOLA) at 11pm ET Monday. Lightering, the process in which crude or refined products are transferred from one ship to another, likely will be delayed off the Texas ports of Corpus Christi and Houston until Thursday due to sea conditions. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Gulf producers curb operations before storm: Update
US Gulf producers curb operations before storm: Update
Adds latest NOAA forecast data, BP update. New York, 9 September (Argus) — Oil companies started to evacuate workers and halt some operations in the US Gulf of Mexico ahead of an expected hurricane later this week. Tropical storm Francine, which is forecast to strengthen to hurricane status as it moves north toward the Texas and Louisiana coasts by mid-week, threatens an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production. Shell said it paused some drilling operations at the Perdido and Whale platforms, located about 190 miles south of Houston, and is withdrawing non-essential workers from its Enchilada/Salsa and Auger facilities. ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in. And Chevron said it is evacuating non-essential workers from its Anchor, Big Foot, Jack/St. Malo and Tahiti facilities, though production from company-operated assets remains at normal levels. Those facilities are located about 280 miles south of New Orleans. "We continue to supply our customers at our onshore facilities, where we are following our storm preparedness procedures and paying close attention to the forecast and track of the storm," Chevron said. So far no major problems are reported for BP's offshore facilities in the region. Francine is forecast to approach the Louisiana and upper Texas coast on Wednesday, according to the National Hurricane Center. In a 2pm ET NHC advisory, the storm was about 450 miles south-southwest of Cameron, Louisiana, with maximum sustained winds of 60 mph. Strengthening is expected over the next day and Francine is forecast to be a Category 1 hurricane, with winds of 85mph, on Wednesday evening, when it is expected to make landfall along the Louisiana coast. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU needs to shake up energy markets: Draghi report
EU needs to shake up energy markets: Draghi report
Brussels, 9 September (Argus) — The EU should take measures in energy markets that are "dominated by vested interests", including antitrust investigations, a report from former European Central Bank president Mario Draghi found today. The call came as part of Draghi's report into the EU's future competitiveness, which was requested last year by European Commission president Ursula von der Leyen. It identified cost-efficient decarbonisation as a major challenge, and said the bloc must focus on accelerated innovation and growth and overcome geopolitical dependence and vulnerability. The report, which runs to more than 300 pages, says the EU should carry out antitrust investigation into electricity and gas markets, and into energy imports, to deter "anti-competitive behaviour and tacit collusion" among companies, it said. There should be a common maximum level of energy surcharges in the EU covering all energy taxes, levies and network charges, the report found. Draghi — a former Italian prime minister — put forward specific proposals for energy markets including the development of an EU-level gas strategy, progressively moving away from spot-linked sourcing and increasing EU bargaining power, and reinforcing long-term contracts. He argues for decoupling inframarginal generation from natural gas prices through long-term power purchasing agreements (PPAs) and contracts for difference (CfDs). Draghi wants compensation mechanisms for offering flexibility on markets as well as joint purchasing of energy in addition to demand aggregation. Other ideas tackle speculative behaviour via position limits and dynamic caps as well as an EU trading rule book with "an obligation to trade in the EU". A further proposal is a review of a so-called "ancillary activities" exemption, under EU financial regulation, whereby non-financials, typically energy, firms can trade energy derivatives more freely without being authorised as investment companies. Speaking alongside Draghi today, von der Leyen noted the need to shift away from fossil fuels and support industry through decarbonisation, also by bringing down energy prices. Draghi's report noted the difficulty of cutting emissions in hard-to-abate industries, as well as in the transport sector. Planning is crucial, the report noted. For industry, it recommended "a mixed strategy that combines different policy tools and approaches for different industries", importing some "necessary technology" while ensuring the bloc retains some manufacturing capacity. It called for "a joint decarbonisation and competitiveness plan where all policies are aligned behind the EU's objectives." Von der Leyen did not react to specific proposals put forward by Draghi, and she is not obligated to act on the report's proposals. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Gulf producers curtailing operations on storm threat
US Gulf producers curtailing operations on storm threat
New York, 9 September (Argus) — Oil companies started to halt offshore operations in the US Gulf of Mexico ahead of an expected hurricane strike later this week. Shell said it paused some drilling operations at the Perdido and Whale platforms — located about 190 miles south of Houston — as a precaution as tropical storm Francine threatened to develop into a hurricane as it moves north from the Bay of Campeche toward the Texas and Louisiana coasts. ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in. And Chevron said it is evacuating non-essential workers from its Anchor, Big Foot, Jack/St. Malo and Tahiti facilities, though production from company-operated assets remains at normal levels. Those facilities are located about 280 miles south of New Orleans. "We continue to supply our customers at our onshore facilities, where we are following our storm preparedness procedures and paying close attention to the forecast and track of the storm," Chevron said. Francine, which formed off the east coast of Mexico over the weekend, is forecast to become a hurricane as it moves north toward the Texas coast and northwestern Gulf, according to the National Hurricane Center. Current forecasts have it coming ashore somewhere between the Texas/Louisiana border and New Orleans Wednesday evening. A hurricane watch is in place for parts of southern Louisiana as Francine is expected to bring heavy rainfall and the risk of flash flooding across the region. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more