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The Perspective of Penetration of Natural Gas in Greece

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The Perspective of Penetration of Natural Gas in Greece Aristotle University of Thessaloniki IPSP: Law and Engineering for Energy Dissertation Dimitrios A. Sourlas The perspective of penetration of Natural Gas in Greece Thessaloniki, 2017 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE Aristotle University of Thessaloniki IPSP: Law and Engineering for Energy Dissertation “The perspective of penetration of Natural Gas in Greece” Dimitrios A. Sourlas +306976711958 [email protected] Supervised by: Dr. M. Kontogiorgis Thessaloniki, 2017 1 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE Abstract The aim of this dissertation is to produce a proposal for the penetration of natural gas in Greece. There has been a large cover of network in the biggest cities of the country so far, but didn’t develop in the same rate to the smaller ones. By studying the network’s history in terms of transmission and distribution over the years and with the recent changes in regulation, the reader will be completely informed with the condition as it is today. Future plans of worldwide transmission networks are described and taken into account in the proposal. The proposal consists of splitting the Greek territory into regions of study for purposes of ease of operation and economic sustainability. Those regions are Thrace combined with Eastern and Central Macedonia, Western Macedonia combined with Epirus and the Ionian Islands, Western and Central Greece, the Peloponnese, Crete and finally Northern and Southern Aegean Islands. It is found that Greece needs to take advantage of the TAP future project for serving areas such as Western Macedonia, CNG can be used with good terms for Thrace in combination with the already existing DESFA network. LNG will play a major role in the proposal in both road and sea transport. Road transport of LNG is preferred in many cases such as the Peloponnese in combination with CNG for small cities and concerning all the islands there should be an interconnection between the closest ones and get served by LNG for transport from the mainland, either from Revythousa or the new FSRU in Alexandroupolis. It is also recommended a new LNG port in Igoumenitsa for the Ionian Islands and Epirus. The total capital needed for the most economical solution proposed is at the level of a billion euro and should be proposed to become a common interest plan for the country’s safety of supply. 2 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE Abstract .......................................................................................................................... 2 1. Introduction ............................................................................................................ 4 2. Today’s Network History ...................................................................................... 6 3. Future Projects ....................................................................................................... 9 3.1. Southern Corridor (SCP-TANAP-TAP) ......................................................... 9 3.2. Eastern-Mediterranean Pipeline .................................................................... 10 3.3. Interconnector Greece – Bulgaria (IGB) ....................................................... 10 3.4. LNG shipments ............................................................................................. 11 3.5. Internal Transmission and Distribution System development ...................... 12 4. Description of Penetration of Natural Gas Proposal ............................................ 13 4.1. Key assumptions ........................................................................................... 13 4.2. Proposal Description ..................................................................................... 13 5. Proposal Study ..................................................................................................... 16 5.1. Thrace, E. Macedonia, C. Macedonia ........................................................... 16 5.2. Western Macedonia, Epirus and Ionian Islands ............................................ 29 5.3. Western and Central Greece .......................................................................... 39 5.4. Peloponnese ................................................................................................... 44 5.5. Crete .............................................................................................................. 49 5.6. Northern and Southern Aegean Islands ......................................................... 56 6. Conclusion and Discussion .................................................................................. 72 7. References ............................................................................................................ 76 8. Appendices ........................................................................................................... 78 8.1. DESFA Transmission Network ..................................................................... 78 8.2. DEDA Distribution Network ........................................................................ 80 3 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE 1. Introduction Energy has always been in the front of events for centuries, affecting counties in a worldwide framework. The world’s economic growth is linked to cheap energy amongst continents and hydrocarbons since its first discovery led to an industrial revolution that turned our lives to a better standard of living. Transferring energy from the physical resources to the end customers has created an industry so important, that in most cases countries are dependent on it. Technological growth, inventions, spread of good practices, regulations and personnel experience through the years have concluded in reducing costs of drilling, mining, transferring in many ways and preparation for consumption. Natural Gas is the successor of oil in the modern days, which is steadily growing in demand. At present, most climate scientists insist that greenhouse gas (GHG) emissions, especially carbon dioxide (CO2) emissions, play a crucial role in global warming. It is friendlier to the environment because its burning does not leave traces or produce chemical compounds of sulfur which is one of the most important causes of pollution1. The EU has embraced natural gas for many years now, inducing residential and industrial consumers use it instead of oil for environmental reasons as well as economic ones. The policy is also about safety of supply, so that the mixture of energy amongst the countries will give independency and create competition between fuels. Greece as a member of the union followed the policies and introduced it as an economic fuel just 20 years ago. This dissertation is about to reveal the Greek history of natural gas networks, in terms of transmission and distribution system development since its first steps in 1995 up to now. There will also be presented future projects that concern the country, as well as plans for development by the existing carriers. There will be proposed a solution for the remaining Greek territory that natural gas has not penetrated yet, by splitting into regions with respect to distance and ease of operation. Comparing pipelines with alternative ways of transfer such as CNG and 1 Impact of natural gas consumption on CO2 emissions: Panel data evidence from China’s provinces, Kangyin Dong et al, 2017 4 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE LNG, will produce an outcome for each region according to the business eye and will be projected at the final proposal as a road map for the penetration of natural gas in the country. 5 DIMITRIOS A. SOURLAS 2017 THE PERSPECTIVE OF PENETRATION OF NATURAL GAS IN GREECE 2. Today’s Network History The national natural gas transmission and distribution system has developed quite slowly over the years since its beginning under the law 2364/19952 where the body of energy inspection and design was constituted with the purpose of importing, transferring, supplying and distributing natural gas, which later substituted by the Regulatory Authority for Energy (RAE) by the law 2773/19993. The national natural gas company (DEPA), founded in 1988 as the daughter company of the state oil company (DEP), as being the carrier of natural gas infrastructure development was the first company that took the burden to construct and operate the national transmission and distribution system. DEPA had the right of supplying natural gas to the distribution companies and big customers of more than 100 GWh per year. DEPA had the right to found distribution companies with geographical and operational restrictions and those distribution companies had the right to contribute their rights to supply companies (EPA) whose purpose would be to plan, exercise and exploit those rights. Three supply/distribution companies were founded in Greece, EPA Thessaloniki and EPA Thessalia in the year 2000 and EPA Attiki in the year 2001. Their purpose were to exercise the exclusive right of planning, design, engineering, construction, exploitation and supply of natural gas to end customers for the regions of Thessaloniki, Thessalia and Attiki relatively. EPA Thessaloniki and EPA Thessalia had since its foundation and until today as shareholders 51% DEPA and 49% ENI Spa as the strategic investor who would exercise the company’s management. In the same
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