European Commission to allocate loan for Greek LNG terminal
BAKU, Azerbaijan, June 18
By Leman Zeynalova - Trend:
The European Commission has approved a €166.7 million Greek support measure for the construction of a new liquid natural gas (“LNG”) terminal in Alexandroupolis, Greece, Trend reports with reference to the EU Commission.
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 terminal is expected to improve security of supply not only for Greece, but also for Bulgaria and for the wider South Eastern European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria (“IGB”). The Commission approved public support for the IGB project, which is currently under construction, under EU State aid rules in November 2018.
The project will be financed by the Greek State using European Structural and Investment Funds (“ESIF”), notably funds directly controlled and managed by Greece under the 2014-2020 Partnership Agreement for the Development. The support will take the form of a direct grant amounting to €166.7 million. The beneficiary of the aid is Gastrade SA, a company in which the Greek gas incumbent (DEPA) and the Bulgarian gas Transmission System Operator (Bulgartransgaz EAD) hold a participation. Gastrade will be the promoter and operator of the new terminal.
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