Revithoussa LNG/POWER terminal: the most valuable European assets under sale process

Greek Government plans the privatization of Greek natural gas grid operator DESFA. DESFA is the Greek certified natural gas transmission system operator that owns and operates the regulated high pressure gas transport network and LNG re-gasification facilities in Greece. DESFA is a wholly owned subsidiary of Public Gas Corporation (DEPA), which is currently 65% owned by the Hellenic Republic Asset Development Fund and 35% owned by the Hellenic Petroleum (HELPE), the shares of which are listed on the Athens Exchange. On June 26th the Hellenic Republic Asset Development Fund announced the invitation to submit an expression of interest for the acquisition of a 66% stake in Hellenic Gas Transmission System Operator (DESFA).

DESFA (Hellenic Gas Transmission System Operator) has a full and exclusive right to the operation, management, maintenance and development of the National Natural Gas System and Revithoussa Liquefied Natural Gas (LNG) terminal. The LNG Terminal of Revithoussa, which was commissioned in February 2000, receives LNG by carrier, stores it or vaporizes it and injects the gas into the National Natural Gas

Within the framework of the above legislation, the Fund and HELPE, in their capacity as shareholders of DEPA and indirect shareholders of DESFA (the Sellers) have entered into a Memorandum of Understanding to jointly sell their respective stake in DESFA, save for a 34% stake in DESFA that shall be retained by the HR. Interested Parties who wish to participate in the Tender Process should submit an Expression of Interest in accordance with the invitation requirements by end of July.

LNG Terminal “Revithoussa” serves as the entering point of LNG at Hellenic gas transmission system and it supports the European energy security

The privatization of DESFA is part of a drive by Greece to sell state assets, which is a significant condition of the country’s bailout by the European Union and IMF. Greece and its biggest oil refiner Hellenic Petroleum had agreed to sell 66 percent of DESFA to Azerbaijan’s SOCAR for 400 million euros ($426 million), but the deal terminated in November.

What makes DESFA a valuable business case, is basically, the fact that it is a strategically located asset in the South-Eastern corridor and the only LNG/GAS gate to SE Europe – a gas to power transit hub. In fact DESFA’s core infrastructure asset offering stable, regulated, inflation-linked cash flows and attractive allowed returns. Additioannly, DESFA shows high profits with EBITDA margin of 56% (2011-13 FS), 41% (2016FS) and 55% (2017E). Its form the Greek assets with very sustainable growth, high rationalization of costs, high quality and newly built assets with a strong operational track-record.

What is DESFA; Revithoussa Terminal; Natioanl Grid; and the opportunities for energy integration of LNG import terminals to adjacent of a hight performance power plant?

DESFA is one of the most valuable and profitable LNG/NG assets across Europe, and the LNG Terminal “Revithoussa” serves as the entering point of LNG at Hellenic gas transmission system and it supports the European energy sustainability and electricity security. Revithousa terminal its a very flexible asset in an open sea (an island located close to Piraeus port and Athens) and it has been selected by EU (energy transportation of the sea program) as a priority terminal for the LNG bunkering. Today, DESFA terminal is the strategic leader for the POSEIDON-MED (Cross European LNG bunkering) project across Mediterranean, Adriatic and Black Sea territory. QENERGY Europe was the strategic leader of POSEIDON MED in 2013/2015. Revitoussa is the only Mediterranean asset which could successfully facilitate the LNG bunkering in the near future and great potentials of transit Qatari LNG in SE and Central Europe and electricity production. Click to review the treminal specifications.

DESFA (National Natural Gas System Operator) is a natural gas trasmittion system operator in Greece . It was established on 30 March 2007 as a subsidiary of DEPA. In addition to the transmission system, the company operates also the Greece’s gas distribution networks, and the Revithoussa Terre-gasification terminal. Revithoussa terminal has all the potentials for the construction of an higly efficient CCGT power plant. The studies shows that the energy integration of LNG import terminals to adjacent power plants with the aim of generating mutual profits for both systems. There are opportunities for performance enhancement and clever use of the residual non-workable energy from the power plant side into the regasification process, as well as the regasification process lowering the reservoir temperature level for heat rejection, working as a virtual dead state. The combined cycle gas turbine (CCGT) plant is a very efficient assembly of a gas turbine (GT) to a Rankine cycle, whose goal is to prioritize the electrical output conversion. Flue gases are rejected by the GT allowing production of steam that drives the steam turbine (ST) of a coupled Rankine cycle. Overall performances superior to 65% are not unusual, and explain the huge number of power plants based mainly on natural gas, a suitable and convenient fuel to this kind of application.

WATCH THE RE-GASIFICATION TERMINAL VIDEO

DESFA LNG Terminal “Revithoussa” serves as the entering point of LNG at Hellenic gas transmission system. At its facilities can be performed the process of unloading of LNG vessels;  storage of LNG; recovery of boil off gas from storage tanks; aporization of LNG; natural gas export to the Hellenic gas transmission system. At Revithoussa Jetty can be unloaded one vessel each time. The maximum LNG unloading rate is 7.250m3/h. Two cryogenic storage tanks 65.000m3 each are used to temporarily accommodate the LNG before its regasification and export to gas grid. Additional, an new cryogenic storage tank of 90.000m3 is under construction. The total storage tank capacity withh reach to 220.000m3 by the end of this year. LNG is transferred and stored at a temperature of -1600C and at about atmospheric pressure. Two submarine gas pipelines (2×24”), having length of 510m and 620m connect LNG Terminal sendout pipe with Agia Triada metering station which is the entry point to the Hellenic gas transmission system.

The National Natural Gas Transmission System transports gas from the Greek-Bulgarian border (upstream TSO BULGARTANSGAZ) and the Greek-Turkish border (upstream TSO BOTAS) to consumers in continental Greece and it consists of the main gas transmission pipeline and its branches; the Border Metering Stations at Sidirokastro, near Serrers and at Kipi, near Evros River; the Compression Station at Nea Mesimvria, Thessaloniki; the Natural Gas Metering and Regulating Stations; the Natural Gas Control and Dispatching Centers at Patima Magoulas near Athens and at Nea Mesimvria near Thessaloniki; the Operation and Maintenance Centers of Sidirokastro Border Station, Northern Greece, Eastern Greece, Central Greece and Southern Greece; and the Remote Control and Communication System.

Sources: QGN, Gulf Agency News, HRADF, Reuters, Bloomberg, EU Energy News-June2017, BBC, EU Transportation of the Sea, LNG World, ICIS, Platts.