ECONOMY

A regional natural gas hub is possible in Greece

The creation of a commercial natural gas hub in Greece will be absolutely possible in five years’ time, according to a study presented on Tuesday in Athens by the Institute for Energy in Southeast Europe (IENE).

The study, titled “The Outlook for a Natural Gas Trading Hub in S.E. Europe.” showed there are two main conditions that must be fulfilled: The first is the existence of sufficient natural gas quantities from the various entry points, and the second is the creation of a energy securities market for the trading of future contracts and transactions of other natural gas quantities.

The conditions that will be created in Greece with the passage of the Trans Adriatic Pipeline (TAP), the realization of the interconnection with Bulgaria (IGB) and the construction of at least one of the two liquefied natural gas (LNG) terminal stations in Kavala or Alexandroupoli will be decisive toward the creation of a gas hub for Southeast Europe in Greece, according to the IENE experts. Its operation would strengthen the competitiveness of the market and improve the security of supply, while allowing players in the broader Eastern Mediterranean market to negotiate the rates of gas quantities instead of the bilateral contracts valid today.