MedGas secures license to provide LNG supply into central Greece
Mediterranean Gas S.A. (MedGas), a Greek LNG developer, has, on 10 February 2022, secured from the Greek Regulatory Authority for Energy (RAE), the license for independent Natural Gas System (ASFA), thus providing MedGas the authority to construct and operate its proposed LNG terminal in the Port of Volos.
On October 14, 2021, ExxonMobil LNG Market Development Inc., and MedGas signed a memorandum of understanding (MOU) to assess the supply of ExxonMobil LNG into MedGas’s proposed LNG regasification terminal in Volos, Greece. The award of the permit by RAE reflects a key milestone for the project.
Located approximately 330 kilometers north of Athens, the Volos location is centrally located as a forthcoming major energy hub. Volos provides LNG connectivity from the Mediterranean Sea to surrounding countries, holding numerous strategic advantages due to the neighboring industrial zones and its proximity to the Greece National Natural Gas Transmission System.
The project supports increasing demand for natural gas in Greece in addition to promoting security of supply. Greece relies on imports for all natural gas via pipeline gas with natural gas primarily being used for power generation.
There is currently one operational LNG terminal in Greece, Revithoussa LNG; a second LNG import terminal project in Alexandroupolis that recently sanctioned; and now two terminal projects to include the Volos project holding permits to construct and operate.
The terminal, when constructed will consist of a floating storage and regasification unit (FSRU), mooring, and a short pipeline connecting to the Greek national transmission system. The FSRU will have a capability of approximately 500 MCFD nominal (~3.7 MTA) and 750 MCFD peak (~5.6 MTA) regasification capacity and a storage capacity of approximately 170,000 m3. The project is targeting a commercial start-up date in the second quarter of 2023.
Andrew Barry, Vice President of LNG Marketing at ExxonMobil, remarked, “We congratulate the MedGas team for securing this key regulatory permit further advancing this exciting project. The project when operational will enable the supply of natural gas into Greece and potentially surrounding countries. At ExxonMobil, we are pleased to have the opportunity to be the LNG supplier.”
Vasileios Petkidis, MedGas CEO, remarked, “We are proud to have ExxonMobil on board as a Strategic Ally, and we continue to appreciate the support ExxonMobil has provided us as we develop this emblematic project. It is critical that we have value chain allies like ExxonMobil that are capable to deliver LNG safely and reliably to our import terminal. Supplying LNG to MedGas’s terminal Greece will help the country move toward greater energy independence and support the country’s transition to lower-carbon fuels.”
ExxonMobil affiliates are processing 12 million tonnes per year of lower-cost liquefied natural gas (LNG) supply opportunities to meet the growing global demand. This includes potential projects in Papua New Guinea (PNG), Mozambique, and the United States. As one of the largest natural gas producers in the U.S. and a significant producer of LNG around the world, ExxonMobil is well positioned to meet the future demand for these resources.