Greece Steps Up as Southern Europe’s Energy Hub with Landmark US LNG Deal
A new joint venture, Atlantic Sea LNG Trade, is poised to reshape the energy landscape of Southern Europe. The company, formed by Greece’s DEPA Commercial and Aktor Group, has secured a deal to import up to 15 billion cubic meters (bcm) of liquefied natural gas (LNG) annually from the United States for the next 20 years. This move comes as Europe prepares to drastically reduce its reliance on Russian gas by late 2027, intensifying the competition for alternative energy sources.
The Vertical Gas Corridor: A New Route to Energy Security
Central to this strategy is the “Vertical Gas Corridor,” a pipeline network designed to transport gas from Greek terminals – including Revithoussa and Alexandroupolis – northward through Bulgaria, Romania, Moldova, and Ukraine, as well as extending to the Western Balkans and Austria. Atlantic Sea LNG Trade recently finalized its first US LNG contract with Ukraine’s Naftogaz, with the first cargo expected to arrive at the Revithoussa terminal in March. This demonstrates the corridor’s immediate operational capacity.
The company is actively engaging in discussions with potential buyers along this route, including those in Albania, North Macedonia, Bulgaria, Romania, Hungary, Moldova, and Austria. Demand is reportedly strong, with higher consumption in Romania, Hungary, and Moldova, and increased industrial usage further south.
Why Now? Securing Long-Term Supply in a Volatile Market
According to Alexandros Exarchou, CEO of Atlantic Sea LNG Trade, securing long-term agreements with the US is crucial to prevent Europe from becoming vulnerable to energy dependence again. He emphasizes that now is the optimal time to negotiate, as prices are expected to rise significantly after 2030 due to tightening market conditions and increased demand. Currently, Europe is the largest market for US LNG, receiving approximately 80% of US exports, which account for around 60% of Europe’s total LNG imports.
Greece’s Growing Role as a Regional Energy Leader
This deal solidifies Greece’s position as a key energy transit hub. The country is actively investing in infrastructure, including LNG terminals, to facilitate the import and distribution of gas throughout the region. The joint venture, with Aktor Group holding a 60% stake and DEPA Commercial owning 40%, is focused on maximizing the potential of the Vertical Gas Corridor.
Did you grasp? The partnership between Aktor and DEPA Commercial led to the establishment of ATLANTIC – SEE LNG TRADE S.A., specifically to purchase and import LNG into Greece and then re-export it.
The Geopolitical Implications of Shifting Energy Flows
The shift away from Russian gas and towards US LNG has significant geopolitical implications. It strengthens transatlantic energy cooperation and reduces Russia’s leverage over European nations. The 20-year agreement between Atlantic Sea LNG Trade and US suppliers provides a stable and reliable energy source for Southern Europe, enhancing energy security and promoting regional stability.
FAQ
Q: What is the Vertical Gas Corridor?
A: It’s a pipeline network designed to transport gas from Greece to Central and Eastern Europe, including Ukraine, Bulgaria, Romania, Moldova, and Austria.
Q: Why is Greece becoming a key energy hub?
A: Greece is investing in infrastructure and strategically positioned to facilitate the import and distribution of LNG to Southern and Eastern Europe.
Q: What is the significance of the 20-year LNG deal?
A: It provides a long-term, stable supply of LNG to Southern Europe, reducing reliance on Russian gas and enhancing energy security.
Q: Who are the key players in this deal?
A: Atlantic Sea LNG Trade (a joint venture between DEPA Commercial and Aktor Group) and US LNG suppliers.
Pro Tip: Keep an eye on developments related to the Alexandroupolis LNG terminal in Greece, as it will play a crucial role in increasing LNG import capacity and supporting the Vertical Gas Corridor.
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