Greece’s gas grid operator has asked for offers on three different LNG vessels as it pursues a project to install a floating storage and regasification unit to supply the island of Crete.
The Hellenic Gas Transmission System Operator, known as DESFA, has floated requests for information (RFIs) to either charter or purchase an FSRU with a minimum storage capacity of 125,000 cbm, which would be moored near-shore to Atherinolakkos in southern Crete.
It has also issued an RFI for an LNG carrier with a minimum capacity of 20,000 cbm to be used as a floating storage unit, which would be moored at an existing quay.
DESFA, which is a subsidiary of the Public Gas Corp of Greece (DEPA), said the unit can be barge-based and can be equipped with or without regasification capacity.
The outfit is also asking shipowners to register their interest in providing a small LNG carrier of up to 10,000 cbm for sale or charter, which could be used in conjunction with this project.
The ship would be expected to undertake about 75 loadings per year, voyages of at least 21 hours, and have an LNG transfer rate equivalent to a loading operation of about 10 hours.
Deadline
DESFA has said the FSRU, FSU and small carrier would need to be available from the end of 2021 and, if taken on charter, would be required for 36 months, although the eventual duration will depend on the project’s final requirements.
In all three enquiries, which DESFA stresses are not requests for proposals or quotes, a deadline of 20 January has been set for responses.
Those working closely with the project explain that Crete — the largest and most populous of the Greek islands — is using diesel for its power generation but will need to produce more electricity locally, for which natural gas could be a good solution.
Regulators are considering what size of generating capacity can be built.
This includes power projects in the range of 100MW to 400MW and converting the existing 100MW diesel-fuelled plant at Atherinolakkos to gas.
Plans for grid interconnection to the mainland are also in the pipeline.
In the interim, DESFA is looking at installing an FSRU as a way of guaranteeing an energy supply to the island.
“Crete needs a solution fast and an FSRU would do this,” one source said.
Several scenarios are being considered.
In one, the FSU could be used to supply LNG to an onshore regasification unit or simply to provide greater flexibility of supply for the project.
Under another scenario, the small carrier would be used to ship in LNG cargoes from Greece’s existing land-based LNG terminal at Revithoussa.
In the longer term, the authorities are aware of the wider regional possibilities for LNG supply, with Cyprus recently committing to its own FSRU import project and the growing requirements for LNG bunkering in the Mediterranean.
DESFA is understood to have approached the market for the three units in a bid to put some figures on the table so that it can move quickly on its project.
The company, which includes Enagas, Fluxys and SNAM as shareholders, is said to be ready to invest but wants to know more about the price of vessels and availability at shipyards for newbuildings.
