Gastrade Signs LNG Deal with State-owned DEPA

Greece's state controlled natural gas firm DEPA signed a cooperation agreement on Thursday with natural gas company Gastrade to participate in the development of a liquified natural gas terminal in northern Greece, DEPA said.

Greece currently has one LNG terminal on an islet off Athens. Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupolis.

The project has been described as a 'project of common interest' by the European Union.

Gastrade will hold at least 20 percent stake in the scheme, a source close to the matter said, with LNG carrier operator GasLog another 20 percent.

Bulgarian Energy Holding and Cheniere Energy, a U.S-based LNG exporter, have also expressed interest in the project.

The facility, with an estimated annual capacity of 6.1 billion cubic metres (bcm), will seek to supply gas to southeastern Europe via another natural gas pipeline scheme that will cross through Greece, the Interconnector Greece-Bulgaria (IGB).

The IGB and the LNG terminal would fit with the Trans-Adriatic Pipeline (TAP) which has been under construction and will transport Caspian gas to European markets.

The Alexandroupolis terminal is expected to cost about 370 million euros ($438.01 million).


($1 = 0.8447 euros)

(Reporting by Angeliki Koutantou. Editing by Jane Merriman)