Doubts over new LNG projects

Doubts over new LNG projects

As Europe begins to recover from the shock of the energy crisis and concerns about gas shortages following Russia’s invasion of Ukraine, investors are reassessing the prospect of investing in liquefied natural gas terminals.

Today, 14 new floating storage and regasification units (FSRUs) are under construction in Europe, while demand for gas has fallen by 17% and renewable sources will continue to expand their share in the energy mix.

The discussion that has started also affects the prospects of the four private investment projects for new LNG terminals in Greece. These are the second FSRU of Alexandroupoli (Kopelouzos group), the Dioriga GAS project in Corinth (Motor Oil), the Elpedison project at the port of Thessaloniki and that of Mediterranean Gas in the port of Volos.

If all four new LNG terminals are implemented, along with Revithoussa and the Alexandroupoli (Gastrade) terminal already under construction, they will increase Greece’s annual LNG handling capacity to 25 billion cubic meters, i.e. almost four times the current demand.

Investors appear to be reassessing the prospects of new FSRUs and are in no rush to make final investment decisions. The prevailing belief in the energy market is that not all the projects will be implemented.

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