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George Polychroniou: Energy integration in Greece & the East Med


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“EastMed Energy Roundtable” - Tuesday March 28, 2017

George Polychroniou, Executive Director, Strategy, Business Development, Administration & IT, Public Gas Corporation, Greece

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George Polychroniou: Energy integration in Greece & the East Med

  1. 1. Energy integration in Greece and the East Med Connecting remote areas and the islands to the mainland energy system using Small Scale LNG solutions EastMed Energy Roundtable Brussels 28.03.2017 George Polychroniou Poseidon Med II – Project Manager Executive Director Strategy, Development, Administration & IT, DEPA S.A.
  2. 2. • 53 Islands (population >1.000) • Connections with 162 ports • Non interconnected power generation plants • High density residential areas & large industrial & commercial customers in Western Greece & the Islands without access to Natural Gas • Strategic Geographical Position • Tradition in shipping – World leader • Availability of LNG – Revithoussa terminal Greece: Specific needs / Opportunities for LNG 2 Existing Network Network under Development New Regions Main HP System
  3. 3. • Many non interconnected islands (36 power stations) to the mainland electricity system • High seasonal variations in energy demand due to significant tourist activity • Local power production based on oil fuels • Environmental impact of local power production • High RES penetration in several islands - Significant RES potential • High interconnection cost Power production in the Greek Islands
  4. 4. Small Scale LNG Supply Chain Small Scale LNG supply chain LNG import terminal Final gas consumption Gas extraction Liquefaction Large scale ship transport Regasification Gas transportation / distribution LNG terminal Small scale ship transport LNG Mother terminal LNG road transport LNG receiving terminals 4
  5. 5. Key markets for small scale LNG Marine Fuel Road Transport Fuel Off-grid customers LNG can compete favorably in the heating, commercial, and industrial sectors with conventional fuels such as diesel and propane in areas not currently served by regional pipeline gas infrastructure. The historically high price differential between natural gas/LNG and low emissions oil products necessary to meet the growing restrictions on ship emissions, are key drivers for using LNG as Marine fuel. LNG is increasingly becoming the most economical, cost- effective, and environmentally friendly alternative to conventional transportation fuels for heavy-duty trucks and fleets. 5
  6. 6. Why is LNG a real and necessary perspective for Greece ? • EU Directive 2010/75 on industrial emissions (integrated pollution prevention and control) • EU Directive 2015/2193 on the limitation of emissions of certain pollutants into the air from medium combustion plants • IMO Decision (November 2016) on the implementation of a global sulphur cap of 0.5% on Marine Fuels starting from 01.01.2020 • EU Directive 2014/94 on the deployment of alternative fuels infrastructure (Greek Law Ν. 4439/20.11.2016) 6
  7. 7. • Maintain a leading role in the liberalized competitive domestic market. • Increase the natural gas penetration in the Greek energy market by developing infrastructure projects and by supplying natural gas to regional markets (mainland, Aegean islands). • Become a key player in the broader region – expand trading activities through participation in international infrastructure projects. • Maintain and continuously improve the competitive and sufficiently diversified natural gas supply portfolio. DEPA’s Strategic Goals 7
  8. 8. DEPA’s initiative: Small Scale LNG Project LNG Import Terminal Revithoussa Bunkering Piraeus LNG Bunker Vessel Power Generation Aegean Islands LNG Feeder Vessel LNG Feeder/ Bunker Vessel Core ports adjacent distribution networks Bunkering Core ports Remote Customers/ Distribution Networks, LNG fuel stations in Western Greece & Aegean Islands LNG Trucks 1st Phase: • Piraeus • Patras • Selected Aegean Islands LNG Trucks & LNG Bunker Vessel Core ports Mother terminal 8
  9. 9. • All preparatory works before the construction phase for SSLNG project in the 3 core ports are implemented within PMED II which is co-funded by EU and coordinated by DEPA • The Patras Port Authority BoD approved the cooperation with DEPA and made available the necessary land in the port area for installing LNG reception facilities • Private sector (shipping company) has been involved for the construction and operation of feeder/bunker vessel • Contacts with EIB and commercial banks for financing the investment • MOU with PPC to jointly assess the supply of natural gas to selected non interconnected islands/regions. • MOU with ATTICA Group to jointly assess the introduction of LNG as ship fuel for the vessels of Attica Group fleet Project status 9
  10. 10. Poseidon Med II Piraeus Patras Heraklion Igoumenitsa Limassol Venice 3 Countries 6 Ports Greece Italy Cyprus 4 out of 5 Greek Core Ports EUR 53M 50% CEF-Transport Jun 2015 – Dec 2020 26 Partners 10
  11. 11. Poseidon Med II – Activities Regulatory framework Financial aspects Pilot case (Venice) Sustainability-Synergies Executive Design and Construction of an Innovative LNG Vessel Installations Financial Assessment - Financial Instruments for the Global Projects Investments Adaptation of the Regulatory Framework Assessment of Efficient Supply Chain/Synergies – Sustainable LNG Pricing Patterns Project Organisation Ports & LNG Terminal Infrastructure Vessels Infrastructure Coordination – Management – Dissemination – Social/Public Consultation – Awareness Environmental/Safety/Site Studies – Ports Master Plans updating – Supporting/Preliminary/Detailed Design Studies Tender documents Technical studies for selected vessels Act. 1-3 Act. 6-12 Act. 14 Act. 15 Act. 4-5 Act. 13 Act. 16-17 11
  12. 12. • Energy providers face the uncertainty of a capital intensive investment without secured demand, while • Energy consumers have to undertake high investment costs to comply with new environmental restrictions without a secured and affordable fuel availability in place • Different financial tools are being investigated • EU funding could unlock necessary investments in both supply and demand side Break the Chicken-Egg circle 12
  13. 13. With Poseidon Med II the East Mediterranean sets sail into the LNG era turning Greece into an LNG Bunkering hub in SE Europe. THANK YOU FOR YOUR ATTENTION!