Aktor and Motor Oil in Talks for Greece's Second FSRU Project

en.Wedoany.com Reported - Aktor and Motor Oil are in advanced negotiations for Greece's second liquefied natural gas (LNG) import terminal project based on a floating storage and regasification unit (FSRU), though both parties stated that no final decision or binding agreement has been reached.

In a stock exchange announcement, Motor Oil stated that, given the parent company and group-level involvement in the natural gas sector, potential cooperation opportunities with commercial groups, including Aktor, will be continuously evaluated in line with the group's strategy related to the natural gas market. Aktor also issued a similar announcement, confirming that discussions are ongoing.

Over the past year, Aktor has been active in the LNG market through its joint venture with Depa, Atlantic–See LNG Trade. This joint venture recently reached an agreement with U.S. LNG exporter Venture Global to double the previously announced LNG supply contract volume from a minimum of 0.5 million tonnes per annum (mtpa) to 1 mtpa.

On the other hand, Switzerland-based energy trader Mercuria and Motor Oil have signed a memorandum of understanding to jointly develop an LNG import project based on the Dioriga Gas FSRU. The memorandum covers terminal regasification capacity reservation, long-term LNG supply from Mercuria to Motor Oil delivered via the FSRU, and the framework required to jointly advance the project toward commercial operation.

The facility based on the Dioriga Gas FSRU has been under development for several years and was designated a "strategic investment" by the Greek government in 2023. Located approximately 70 kilometers from Athens, in the "Agioi Theodori" area of the Corinth region, near the Motor Oil refinery and about 1.5-2 kilometers from the national natural gas system, the project is expected to bring 21-24 terawatt-hours (TWh) of LNG imports to southern Greece, accounting for 30% of the Greek market, and add 177,000 cubic meters of storage capacity, an increase of 45%, according to the Dioriga Gas website.

In a status update on May 8, Dioriga Gas stated that the project has offered capacity to "strong players" through market testing. The project team is working to "obtain a marine license, a third-party exemption from the Hellenic Energy Regulatory Authority (RAAEY), and negotiate with key LNG market participants to join the existing project stakeholders." The developer also noted that after a full Russian gas exit from 2027, Greece will need to cover a gap of 2-6 billion cubic meters per annum (bcma), with the domestic gap alone at 2 bcm and rising to 6 bcm when including export demand.

Greece currently imports LNG through DESFA's Revithoussa LNG terminal and Gastrade's FSRU-based Alexandroupolis facility. LNG deliveries to these facilities increased in the first quarter of this year, with the United States supplying the majority of volumes.