News from HAEE | November 2018

Highlights

  • Greece's DEPA buys out Shell's stake in domestic gas supplier
  • Major energy security step: IPTO signs Crete-Peloponnese link contracts
  • Inauguration of Revithoussa Liquefied Natural Gas (LNG) Terminal
  • Repsol, ELPE finalized deal for new Ionian Sea block
  • Renewables help drive power and utilities M&A value to historic high level
  • GEK TERNA will invest 2 billion euros in the next decade
  • Energean Oil & Gas Making Good Progress On Greek And Israeli Projects
  • What does the National Energy and Climate Plan provide?

 

 

 

 

 

 

News from HAEE | November 2018

Greece's DEPA buys out Shell's stake in domestic gas supplier

Greece’s state-controlled gas company, DEPA, has concluded the acquisition of Shell’s 49 percent stake in a domestic gas supplier and in a gas distributor in Athens, becoming the sole stakeholder in the two companies, as announced on Wednesday. The deal to buy stakes in EPA Attikis and EDA Attikis, is worth 150 million euros ($174 million). DEPA, which mainly imports Russian gas, as a sole owner of the companies, will now focus on speeding up network expansion for the benefit of the Greek consumers, as stated by DEPA.

 

Major energy security step: IPTO signs Crete-Peloponnese link contracts

Power grid operator IPTO has taken a major step in resolving Crete’s energy sufficiency threat, feared as of 2020, by signing contracts with four companies, Fulgor, Hellenic Cables, Prysmian Powerlink and Terna, for the development of Crete’s grid interconnection with Peloponnese.

Energy Minister, Mr. Giorgos Stathakis, who attended the signing ceremony in Kissamos, in Crete, described the island’s interconnection project as a historic step that paves the way for Crete’s transformation into a green energy island of minimal environmental impact, while also ensuring energy security and growth prospects for the island.

 

Inauguration of Revithoussa Liquefied Natural Gas (LNG) Terminal

One of the country's most important energy project was inaugurated, the third gas tank in Revithousa, which was held under the 2nd upgrading of the Terminal Station, located on Revithoussa island.

The terminal’s new storage tank will offer a 95,000-cubic meter capacity, boosting the facility’s overall capacity to 225,000 cubic meters. The upgrade promises to create new gas export potential to Balkan and southeast European markets.

According to a study conducted by the Greek gas grid operator, DESFA, the new Revithoussa terminal will be able to cover 30 percent of gas import needs in the Balkans,  Slovenia and Hungary.

 

Repsol, ELPE finalized deal for new Ionian Sea block

HHRM, the Hellenic Hydrocarbon Resources Management company, a consortium comprising Spain’s Repsol and HELPE (Hellenic Petroleum SA), have completed negotiations for exploration and production rights at a new Ionian Sea block on offer.

The Minister of Environment and Energy, Mr. George Stathakis, mentioned the benefits that Greece will derive from the exploration and exploitation of hydrocarbons, during the initiation of the hydrocarbon exploration and exploitation right contract in the Ionian sea area, Western Greece.

He also pointed out that the relevant institutional framework would be reinforced by additional amendments, which will soon be submitted to the Parliament and, among other things, explicitly provide for a ban on fracking.

Greek Power Market operator, Hellenic Energy Exchange S.A. (EnEx), was welcomed as the newest member of the Price Coupling of Regions Initiative

The power exchanges of the Price Coupling of Regions (PCR) initiative welcomed the Hellenic Energy Exchange S.A. (EnEx). HEnEx is the eighth partner further reinforcing the initiative’s foundation for a single European day-ahead electricity market. HEnEx joins the existing power exchanges (EPEX SPOT, GME, Nord Pool, OMIE, OPCOM, OTE and TGE) who have been driving the development of PCR ensuring price coupling of day–ahead electricity markets in 24 countries representing over 90% of European power consumption. HEnEx’s involvement in the PCR initiative is a clear signal of the exchange’s commitment to promoting the single European energy market in Greece, engaging in both regional and as well as pan-European integration activities. PCR was established to provide a single price coupling solution for the day-ahead power markets using a unique algorithm (Euphemia)to calculate electricity prices across Europe and an efficient allocation of cross-border capacity. This is crucial in order to achieve the overall EU target of a harmonized European electricity market; expected to increase liquidity, efficiency and social welfare. PCR is based on three main principles: the use of a single algorithm, robust operation and individual Power Exchange accountability. By jointly developing a Pan-European market coupling algorithm and coordinating the governance structures between Power Exchanges, the Price Coupling of Regions initiative is a concrete operational solution for the achievement of the European Day-Ahead Target Model compliant with Regulation (EU) 2015/1222 of 24 July 2015 (establishing a guideline on Capacity Allocation and Congestion Management - CACM), as acknowledged by CACM implementation acts approved by all European NRAs1. Aiming at the development of a full cooperation across Europe, the PCR initiative is open to any European Power Exchanges wishing to join.

 

Renewables help drive power and utilities M&A value to historic high level


The total value of M & A in the global energy and utilities sector reached a historically high level of $ 180 billion in the first half of 2018, despite a 14% decline to $ 83 billion in the second half of the year. These figures are included in the latest version of the Eurosystem's six-month survey, Power transactions and trends: Q2 2018, which also reveals that almost half (46%) of renewable energy sources (RES).

 

GEK TERNA will invest 2 billion euros in the next decade

GEK TERNA will invest 2 billion euros in the next decade, with energy being one of the key priorities, as Mr Giorgos Perdikaris, TERNA's adviser in the Investment Forum 2018 organized by the Technical Chamber of Greece (TEE), said.

Regarding the investment recovery and the energy sector, it noted that from 18.7 billion. potential investment in infrastructure by 2023, 38% is energy, and according to Mc Kinsey's report on energy the most economically competitive technology in the coming years will be RES.

 

Energean Oil & Gas Making Good Progress On Greek And Israeli Projects

Energean Oil & Gas PLC said it is on track to achieve first gas from the Karish-Tanin project off the coast of Israel in the first quarter of 2021. Energean is set to cut first steel at the project on November 26.

Karish-Tanin is targeting 2.3 trillion cubic feet of gas and 31 million barrels of liquid, with a "high" probability of success.

Elsewhere, Energean expects first oil from the extended reach well at the Epsilon asset in Greece in late 2018.

Chief Executive Mathios Rigas commented: "Our developments are on schedule and we have an active programme of drilling in both Israel and Greece in the months ahead, targeting significant increases in prospective resources and production."We are seeing strong incremental demand for our gas and aim to prove up enough resources to fill the 3.8 billion cubic metres of natural gas of spare capacity in our 8 billion cubic metres of natural gas floating production, storage, and offloading vessel. Future gas sales agreements will focus on both further contributing to security and diversity of supply in the Israeli markets as well as targeting key regional export markets."

 

What does the National Energy and Climate Plan provide?

Ιnvestments of 2 billion euro will arise from the implementation of the National Energy and Climate Plan presented a few days ago by the Ministry of the Environment and Energy. The plan is based on three central pillars:

-restructuring of the country's energy mix by 2030, increasing the share of RES (32% of total consumption, which accounts for 57% of energy production from 29% today), limiting the specific weight of lignite and utilizing natural gas as a stabilizing factor for the transitional period

-saving energy in a number of sectors of the economy, with the aim of achieving a very ambitious target of 1.5% annually 

-tackling energy poverty, essentially by reinforcing the policies already in place and, of course, additional measures to ensure that all citizens, especially the weaker social groups, have access to energy.