News from HAEE | September 2018
News from HAEE | September 2018

Differentiate your energy sources, says US Under Secretary for Energy, Menezes


Mark W Menezes, US Under Secretary of Energy, expressed on Friday his support for the southern gas corridor pipelines crossing Greece - the Trans Atlantic Pipeline, the Trans-Anatolian Natural Gas Pipeline, and the Gas Interconnector Greece-Bulgaria (IGB), as a means of differentiating the country's power supplies.

Speaking at the Southeast Europe Energy Forum, held in Thessaloniki, as part of the International Trade Fair, Menezes opposed the Nord Stream II and Turkish Stream pipelines, saying that they boost Russia's position of near monopoly in the broader area.

He encouraged European states to do the same as Greece and support energy sources and infrastructure that make economic and strategic sense and unite rather than divide Europe.

"If there is one vital message that I would like to say today in one sentence is this: if you want to achieve energy security for your countries, do whatever you can within your means to embrace energy differentiation", he said and added "From Russia's invasion of Crimea in 2014 and its threat to interrupt the supply transit, dependence on Russian gas is getting higher, reaching more than 40 percent from 30 percent".


The Ambassador of the United States of America to Greece supports the cooperation between the two countries

Speaking at the Southeast Europe Energy Forum that is held at Thessaloniki’s 83rd International Fair, the Ambassador of the United States of America to Greece, Mr Geoffrey Pyatt, expressed his belief that Greece’s role as a meeting point for many energy routes in the Mediterranean and South-East Europe is absolutely crucial for USA‘s interests.

Mr. Pyatt added that Northern Greece is especially vital for the pipelines under construction. The American Ambassador mentioned that Greece is a champion on the USA’s strategy for the diversification of the Energy supplies for Europe, helping to achieve our common goals in the broader region. He also mentioned the importance of the privatization efforts of the Greek Government in the sector of Energy, which will bring major opportunities to Greece’s economy, especially now that the country is in a transitional period, returning back to growth.

In addition, he praised the efforts of Greece to create strong and viable alliances in the region with Israel, Cyprus, and Egypt in the Mediterranean as well as with Bulgaria and other neighboring countries in the Balkans.


Greek government and  sign preliminary hydrocarbon agreements for Crete, Kyparissia

preliminary agreement on the concessions for hydrocarbon research and exploration was signed between the Greek state and representatives of winning bidders on Thursday.

The Minister of Environment and Energy, Giorgos Stathakis and the President of the Hellenic Hydrocarbons Management Resources, Yiannis Basias signed on the concessions involving two sea blocks south and southwest of Crete, on one hand, and Sea Block 10 in the Kyparissia Gulf, western Greece.

The Cretan concession was signed by a consortium including Total (40 pct, manager), ExxonMobil (40 pct) and Hellenic Petroleum (HELPE, 20 pct), while that of Block 10 by HELPE, sole contractor.

In his statements, the minister stressed that it was opening a huge field for exploration and extraction of hydrocarbons . With regard to safety and environmental protection, he stressed that in Greece there is the European law that is the most stringent in the world.


The electrical interconnection project between Crete and the Peloponnese is proceeding

The construction works for the Substations of the electrical interconnection of Crete-Peloponnese begin immediately, following the selection of the contractor for the project.

IPTO announced that the company for the construction of the new Transition-Hail Terminal in the Southeastern Peloponnese, as well as the upgrading and extension of the existing outdoor substation in the area of Chania in Crete, was proclaimed "TERNA SA" for a price of 18,5 million. Euro.


Invitation for Expression of Interest (IEOI) for the supply of a Floating Storage and Regasification Unit (FSRU)

Invitation for Expression of Interest (IEOI) for the supply of a Floating Storage and Regasification Unit (FSRU) for the Alexandroupolis Independent Natural Gas System (Alexandroupolis INGS) Project

The Project is being developed by the Greek utility company GASTRADE S.A. and comprises an offshore floating, storage and regasification unit ("FSRU") for the reception, storage and re-gasification of LNG, a mooring and a system of a subsea and onshore gas transmission pipelines, through which natural gas will be delivered to the Greek National Natural Gas Transmission System ("NNGTS") and onwards to the final consumers.

The FSRU will be stationed in the sea of Thrace, 17.6 km SW of the town of Alexandroupolis in NE Greece at an offshore distance of approximately 5.4 n.m. (10 km) from the nearest shore. The Pipeline will be connecting the FSRU to the NNGTS near the village of Amphitriti, 5.5km NE of Alexandroupolis.

The Project is included in the European Union list of Projects of Common Interest (PCI)

Commercial Operation Date for the Project is planned for the 4th Quarter of 2020.

Participants wishing to express their interest in this procedure are kindly requested to send all required information electronically to to the attention of Mr. Andreas Diamandopoulos.

Deadline for receipt of Expressions of Interest is: 25/10/2018, 17:00 Athens time.


2,900 jobs in the energy sector are cut by Siemens

2,900 jobs will be cut in the energy sector within the next two years by  Siemens engineering group, as part of a restructuring plan, to achieve a cost savings of 500 million euros. The company said that the measures were designed to boost the competitiveness of energy and gas distribution and industrial processes.


BP: Αnnual report for energy presented in Athens

The BP's annual report for 2018 refers to the contribution of fuels to the energy mix, to the demand as it is based on economic and geopolitical data, but also to investments in the energy sector.

The report, which was presented in Athens, "sees" the impressive growth of Renewable Energy Sources and further penetration of natural gas and electrification. On the other hand, the oil demand scenarios are controversial, and it is almost certain that investment needs to be made to fill the gap that is expected to be between supply and demand.

As stated by William Zimmern, Chief economist at BP, in the baseline scenario of the ongoing change, global GDP is more than doubled by 2040, which is due to the well-being of fast-growing, emerging economies, as it exceeds 2.5 billions of people who change income category.

China and India account for half of the increase in global energy demand, holding the reins in terms of demand. However, demand for energy is only rising by 30% over the next 25 years, as global demand is boosted by emerging economies, but on the other hand, improvements in energy efficiency are hampering the pace at which it grows. Industrial demand for energy accounts for about half of the increase in energy consumption, while growth in transport demand is slowing sharply in relation to the past.

With regard to coal, according to BP estimates, global fuel consumption will be halted in the future and, as Mr Zimmer said, it is difficult to block the use of coal in some emerging economies (such as Asia) do not have the ability to import expensive gas and turn to domestic coal, which among other things is an energy-safe option. With regard to liquid fuels, the increase in production is initially dominated by US shale oil but later led by OPEC as members adopt a strategy to increase their market share.

Demand for oil continues to rise and the downturn is expected to come in mid 2030 or 2040, depending on the rate of energy transition.

According to Mr Zimmer, the supply of oil will not be able to meet demand and investment in the oil industry should therefore be made. "The market believes there will be a gap in supply and demand".

At the same time, high demand is expected to emerge in 2020 but, as noted, there are many factors that determine its levels such as industry, transport, the building sector, etc. In this scenario, carbon dioxide emissions continue to increase, signaling the need for an integrated action plan to avoid mistakes of the past.

The world will continue to be electrified, with almost 70% of the increase in primary energy being directed to the energy sector. The kilometric distances of electricity-fueled vehicles are increasing, the number of these vehicles is increasing while their use is intensified.

The report expects that the electrification of transport will continue even more rapidly with electric cars doubling and accounting for 15% of the total fleet in 2040.

As pointed out during the presentation of the report by Dr. Kostas Andriosopoulos, Academic Director of ESCP Europe Business School's Energy Engineering Programs and Chairman of HAEE, in the upcoming decades the demand, use and penetration of liquefied natural gas (LNG) will go into a whole new orbit going beyond PNG levels, projects and infrastructures will increase, while cargo capacity will be improved. As he pointed out, although there are great perspectives with regard to the renewables in Greece, we have to encourage big scale projects (>250 MW).

Gastrade's Chairman, Yiannis Arapoglou, speaking on the same subject, stressed that the infrastructures and interconnections through which natural gas can be reached in Greece and the wider area of the Mediterranean Sea are essential and have already been launched. Among other things, he referred to natural gas pipelines, such as TAP and the LNG terminal in Alexandroupolis, projects that are part of a set of investments that will ensure the multiplicity of sources and routes and thus more competitive prices for consumers.


The penetration of smart cash and the benefits for consumers

Smart meters at 7,200,000 points are going to be set up by HEDNO while the manager's strategic plan is to replace all watches with the so-called smart meters. The pilot program currently includes 200,000 smart meters and their use is a "necessary good", as Greece is obliged to adapt to the new operating conditions of the electricity market. Among the benefits of these new systems are energy saving, better management and reduction of streamlines.


Hellenic Petroleum (HELPE) and the Spanish energy company Repsol for hydrocarbons exploration in Greece’s ‘Exclusive Economic Zone (EEZ) blocks in the Ionian Sea 

The Repsol-Hellenic Petroleum consortium is selected for the concession  in Western Greece.


Integrated Energy Services Market enters Motor Oil with the acquisition of NRG

Greece-based Motor Oil, the biggest privately run refinery and fuel supply group in the country, announced the purchase of a 90-percent stake in the electricity producer NRG.

NRG's customer base includes large business groups, SMEs and some retail clients. Turnover in 2017 reached 86 million, up from 48.5 million 2016 and 16.5 million in 2015. The company was established in 2012.


Mytilineos acquires Motor Oil's share in M & M Gas

Mytilineos will acquire the company's share (50%), noting that the two groups have a "very good relationship".

"We made a joint venture to break the monopoly on gas supply. Mytilineos will take our stake at M & M. Business ventures must continue to exist where they make sense. We are in the process of realizing the sale of 50%", said Mr. Tzannetakis from Motor Oil.


Energean drilling more wells at Epsilon oil field off North Greece

Development drilling is under way at Energean’s Epsilon oilfield development offshore northern Greece. Epsilon oil field is located in the north Aegean Sea. It was discovered in 2000 and developed by Energean Oil & Gas. It began production in 2010 and produces oil. The total proven reserves of the Epsilon oil field are around 30 million barrels (4×106tonnes), and production is centered on 2,000 barrels per day.


Energy: Who will fund the National Bank and the EBRD

The financing tools and conditions to be met by businesses and projects from the energy sector were reported by representatives of the National Bank and the European Bank for Reconstruction and Development, EBRD, speaking ON Friday at the Southeast Europe Energy Forum in Thessaloniki.

National Bank's CEO, Pavlos Mylonas, referred to prospects after leaving the memorandum, noting that "we have problems with capital reserves. We hope that investment will help to replenish these stocks. Energy costs in Greece are very high compared to competition and discourage investment. One key challenge is to reduce the cost of electricity. There are several levers. Dependence on lignite and oil with the increases we will have in the years to come will increase the cost."

In terms of incentives, we first have RES. Technological changes have made RES much more cost-competitive than other more traditional sources of energy such as oil and lignite.

Referring to the financing conditions for projects in the energy sector, Mr. Antonis Bartzokas, Deputy Director of the EBRD, noted that "investments have to do with the allocation of funds and these are always limited. The first priority when talking about investment in energy has to do with regional integration, but there are many obstacles to achieving this in SE Europe. Other priorities are natural gas and, of course, innovation. Significant data are energy efficiency, energy efficiency, innovation and banking products."


DEPA and Gastrade sign deal for LNG terminal in Alexandroupolis

Greece's Public Gas Company (DEPA) and Gastrade S.A. on Friday signed a deal for the LNG terminal in Alexandroupolis, on the sidelines of the Southeast Europe Energy Forum organised by the American-Hellenic Chamber of Commerce, in cooperation with the Hellenic Association for Energy Economics (HAEE).

The agreement signed by DEPA's CEO Dimitris Tzortzis and Gastrade's President Ioannis Arapoglou makes DEPA a shareholder in the FSRU infrastructure program in the northern Greek city.

This is a highly significant project that is expected to secure additional quantities of natural gas to supply the Greek and regional market in southeastern Europe, thus contributing to the expansion and diversity of energy sources and enhancing energy security.

With the agreement, Arapoglou noted, DEPA will participate in the company's share capital, while Tzortzis noted that it had taken a long time to complete the agreement. "We have a lot of work to do from this point on, congratulations to the forum organisers" he added.

With regard to the schedule of the project, a market test is due to be completed in the near future and a final decision will be taken at the end of the year, meaning that it can be fully functional by the second half of 2020.

HAEE's Chairman, Dr. Andriosopoulos, noted that the investment will allow the participants to find an exit and alternative consumers in the Balkan region, in Serbia and Bulgaria, whose only source of natural gas at this time was the Russian gas coming via a pipeline from Ukraine.

"The Alexandroupolis project will give potential buyers in these Balkan countries the opportunity to diversify their sources of supply a little. LNG has dramatically changed the natural gas market worldwide, with the US as a spearhead, due to its very cheap production", he added.


Elinoil, Heron sign commercial cooperation agreement

Elinoil and Heron  announced a cooperation agreement for the supply of electricity and natural gas to the Greek market.

In the framework of their cooperation, Heron will supply Elinoil with electricity and natural gas, which Elinoil will distribute to its customers. The strategic goal of this cooperation is to offer customers access to a wide range of energy products, expanding the sales network and exploiting and using alternative retail networks.

Heron was founded by GEK Terna Group, while Elinoil is a fuel and lubricants commercial company with a 10% market share in Greece, operating a network of 620 petrol stations around the country and 140 stations in marinas.


New Chairman at the Board of Directors of ELPEDISON

The position of the Executive Chairman of ELPEDISON is being undertaken by Mr Andrea Testi.

Precisely, post the departure of the former Chairman of the Board of Directors, Mr Michel Piguet, the Board of Directors of the Company unanimously elected President Mr. Andrea Testi, at the Assembly held on September 3.


Greece's Public Gas Company (DEPA) and Gastrade S.A. signed a deal for the LNG terminal in Alexandroupolis

The agreement signed by DEPA's CEO, Dimitris Tzortzis, and Gastrade's President, Ioannis Arapoglou, makes DEPA a shareholder in the FSRU infrastructure program in the northern Greek city. The agreement was signed during the Southeast Europe Energy Forum organized in Thessaloniki by HAEE and Hellenic-American Chamber.

This is a highly significant project, which is expected to secure additional quantities of natural gas to supply the Greek and regional market in southeastern Europe, thus contributing to the expansion and diversity of energy sources and enhancing energy security.

HAEE's Chairman, Dr. Andriosopoulos noted that the investment will allow the participants to find an exit and alternative consumers in the Balkan region, in Serbia and Bulgaria, whose only source of natural gas at this time was the Russian gas coming via a pipeline from Ukraine.

"The Alexandroupolis project will give potential buyers in these Balkan countries the opportunity to diversify their sources of supply a little. LNG has dramatically changed the natural gas market worldwide, with the US as a spearhead, due to its very cheap production" he added.

The Greek Minister of Environment and Energy, Giorgos Stathakis, noted in the Southeast Europe Energy Forum on Friday that, Greece and the Former Yugoslav Republic of Macedonia (FYROM) are working on the idea of a new natural gas pipeline between Thessaloniki and Skopje, on the sidelines of the 83rd Thessaloniki International Fair.

The Greek Minister, expressed the hope that "everything would go well" with the name agreement signed by the two parties in June. (FYROM is holding a referendum on the issue on September 30.)

Referring to the Greece-Bulgaria interconnector (IGB), the Greek Energy Minister said that "its construction is expected to begin in 2020, and its capacity is formulated at 3 billion cubic meters." He marked that the technical issues are completed and the project is at the stage of inviting tenders. He added that the recent agreement among Exxomobil, Total and Hellenic Petroleum (HELPE) for hydrocarbon exploration in the sea west and southwest of Crete "is a very important project that will build Greece's self-confidence."

The Greek Energy Minister called for a common natural gas market in the Balkans, which should become an energy hub. "I don't know if a single country will assume that role; personally, I believe that all of the Balkans will" he said.