The European Commission has approved a Greek support measure for the construction of a new FSRU-based import terminal in Alexandroupolis.
Gastrade, the developer of the LNG facility, will get 166.7 million euros ($199 million) from Greece via the European Structural and Investment Funds.
“The project will contribute to the security and diversification of energy supplies in Greece and, more generally, in the region of South East Europe, without unduly distorting competition,” the Commission said in a statement.
According to the statement, the Greek authorities have confirmed that the LNG terminal would be apt to use for hydrogen.
Gastrade’s LNG import project includes a FSRU to be located 17.6 kilometers offshore the town of Alexandroupolis in Northeastern Greece.
Furthermore, the 5.5 bcm per year vessel will supply the fuel to several markets in the region.
This includes Greece, Bulgaria and the wider region, from Romania, Serbia and North Macedonia to Hungary, Moldova and Ukraine.
Gas market players in Greece and southeast Europe have already reserved 2.6 bcm per year capacity at the facility.
Gastrade shareholders include Copelouzos, DEPA, Bulgartransgaz, and Gaslog that will provide the FSRU.
Greece’s gas grid operator DESFA has also purchased a 20 percent stake in Gastrade from Copelouzous but this deal is still subject to regulatory approvals.
In addition, North Macedonia has shown interest to buy a stake in the firm.
Gastrade aims to launch the LNG terminal in Alexandroupolis in 2023.