The advantages of the FSU solution in Revythousa

Of Thanks to Floudopoulos

It is a decision of the Greek government to proceed with the solution of the floating liquefied natural gas storage tank (FSU) that will be installed in Revythousa, competent sources of the Ministry of Environment and Energy clarify.

According to the same sources, there are two alternatives being considered in relation to the project. The first concerns the rental of a boat that will act as a storage tank for a period of 12 months.

This solution can be ready within 12 months and is expected to offer considerable flexibility as it will be possible to unload LNG quantities simultaneously from two ships. This infrastructure will also be able to function as a balancing tank.

The second solution under consideration is to install a permanent floating tank in Revythousa, which will have a longer time horizon but as a function will be the same as the ship’s solution.

In any case, the solution is expected to be approved by the Energy Regulatory Authority taking into account parameters such as demand developments and the prospect of Revythousa playing an expanded role as a gateway for gas to countries other than Greece. It is noted that already two countries, Bulgaria and Romania use capacity at the Greek terminal.

Warehouse of Kavala

At the same time, according to the same sources of RIS, the developments in Ukraine and the effects of the energy crisis differentiate the data around the case of the creation of an underground gas storage in the area of ​​southern Kavala.

On the one hand, the need to create strategic reserves, as dictated by the Commission’s decisions, works in favor of promoting the project, at the same time that the high cost of gas significantly differentiates costs and acts as a deterrent to the project.

It is recalled that the Commission has suggested the creation of strategic gas reserves by the Member States before next winter.

For our country, the obligation to create strategic reserves equal to 15% of annual consumption translates into a need to store about 1 billion cubic meters of natural gas.

This quantity is being considered to be stored in neighboring Italy where there is relevant infrastructure and in this direction discussions have started between DESFA and the Italian manager Snam.

In case the obligation to maintain strategic stocks is consolidated, then a strong incentive is created for the implementation of the underground warehouse project.

At the same time, however, the cost of the project has skyrocketed given the rising cost of gas. It is noted that in order to create the warehouse, there will have to be an injection of non-recoverable gas (cushion gas), which at current prices is estimated to cost around 500 million euros. Together with the development cost of the warehouse, the total cost of the project is estimated at around 1 billion euros.

Finally, it is worth mentioning that according to the assessment of the ministry, it will probably have to be re-evaluated based on the new data and the percentage of socialization, which according to the RAE proposal was set at 50%.

Source: Capital

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