New LNG system opens in Greece aiming to reduce reliance on Russia

The Greek city of Alexandroupolis is the site of a new liquified natural gas (LNG) project, funded in part by the European Commission with the aim to create jobs in the region and reduce its reliance on Russian gas.

The project consists of a floating storage tank, a regasification unit that converts liquified natural gas (LNG) back to gas, and a pipeline.

It also includes a system of submarine and land pipelines through which natural gas is imported into Greece before being transported to consumers at home, but also Bulgaria, Romania, North Macedonia, Serbia and further into Moldova and Ukraine in the east and Hungary and Slovakia in the west.

The European Commission approved an investment of over €157 million for the project’s first phase.

It is expected to benefit the local economy by generating €382 million in CO2 emissions and fuel-switch savings as it replaces coal and oil with gas.

”If we look all the way to Hungary, including Ukraine and Moldova, we can see the current input in long-term natural gas supplies from Russia in this area, including Greece, is approximately 20 billion cubic metres,” said Maria Rita Galli, CEO of Greece’s natural gas transmission system operator DESFA.

She added that Greece would now have an export capacity of 8.5 billion cubic metres by early next year.

The new pipeline is an important gateway for LNG to reach other parts of southeast Europe, an area which is heavily reliant on Russian gas.