GasLog has announced that it has closed the sale and purchase agreement to acquire a twenty percent shareholding in Gastrade. Gastrade is licensed to develop an independent natural gas system offshore Alexandroupolis in Northern Greece utilizing a floating storage and regasification unit according to a GasLog statement.
This FSRU project would provide a new route and a vital source of gas diversification to a number of countries that are currently highly dependent on pipeline gas in South East and Central Europe. As well as enhancing security of supply in the region, it will promote competition and pricing flexibility. The project has the backing of the Greek and the Bulgarian Governments as well as the support of the EU. It has been assigned the status of an EU Project of Common Interest ("PCI"), that is further designated as a priority EU energy infrastructure project. The front-end engineering and design ("FEED") study is expected to be part-funded by an EU grant, and is scheduled to commence in the coming weeks.
Gastrade targets to take final investment decision by the end of 2017 with the Project scheduled to be operational by end of 2019.