Greece to build new LNG terminal to wean off Russian gas

Greece has begun construction on its first floating liquefied natural gas storage terminal in the Aegean Sea which is set to create a new route for gas in Europe and help the continent wean itself off Russian gas in the wake of the invasion of Ukraine.

Since the February 24 invasion, the US and its allies have imposed the most severe set of sanctions in modern history on Russia. Moscow has said that it will take appropriate action in response and last week state-owned gas company Gazprom cut off the supply to Poland and Bulgaria for the countries' refusal to pay in roubles. Gas prices continue to soar over fears that more nations could be hit.

The Greek project will be located around 17km off the coast of the port of Alexandroupolis and is expected to be completed and operational by early 2024. EU officials hailed the news as being a significant step towards bolstering Southeast Europe's energy security and independence.

Read more: Ukraine war has "turbocharged" green hydrogen sector

In a speech at the construction launch ceremony, Greek Prime Minister Kyriakos Mitsotakis described the LNG terminal as an energy gateway for Greece and the Balkans, adding that the project, along with other similar projects, would mean that Russian gas could soon be substituted with gas from other sources.

He said that the terminal was "a project that helps the economies of all our countries, a project with a significant geopolitical footprint, a project that – due to the turn of events and international circumstances as well as the violent Russian invasion of Ukraine – acquires a special geopolitical significance in this world which is changing at such a rapid pace.

"The recent blackmail by Moscow concerning natural gas renders this cooperation not just necessary but – I would say – also urgent," added Mitsotakis.

Also at the ceremony were the Prime Minister of Bulgaria Kiril Petkov, the President of Serbia Aleksandar Vučić and the Prime Minister of North Macedonia Dimitar Kovachevski, as well as European Council President Charles Michel, who said that a new dawn for European energy independence was underway.

"This is a very straight and a very positive step for our common political project because it will help to diversify our gas supply. It will help to bolster our energy infrastructure and to phase out our dependence on Russian fossil fuels, which will make us stronger and more secure," said Michel, adding that it was a geopolitical investment in a geopolitical moment.

Read more: Greece vows to link Egypt to EU energy market via subsea cable

The €363.7 million project is set to have a capacity of around 153,500 cubic metres of LNG and is estimated to supply around 5.5 billion cubic metres per year. It will be connected to Greece's National Gas Transmission System via a 28km long submarine and overland pipeline. 

Back to Homepage

Back to Energy & Utilities