Gas exchange development in Greece - Update

16th Energy Community Gas Forum

Gerasimos Avlonitis, Market Development Manager,

member of the BoD of HEnEx
23/9/2021
1
The role of a “gas TSO” in the future
energy landscape
DESFA counts 14 years of successful operation

o Established in March 2007, DESFA owns & operates the Greek Natural Gas SHAREHOLDERS STRUCTURE
System (NNGS), which consists of the National Natural Gas Transmission
System & the LNG Terminal in the islet of Revithoussa.

o DESFA has been certified as an Ownership Unbundled Operator under the 3rd
EU Energy Package, following the completion of a privatization process on
December 20th of 2018.

o DESFA operates, maintains & develops the Greek Natural Gas System in a
safe, reliable and economically efficient way, offering:

1) Regulated Third Party Access services in a transparent and non-

discriminatory way &
2) A range of highly specialized services to a number of national and
international clients
September 2014 Completion of December 2018
Establishment of DESFA Privatization process

Certification of DESFA as
Certification of DESFA as an
March 2007 December 2018 Ownership Unbundled Operator
Independent Transmission Operator
under the 3rd EU Energy Package
The National Natural Gas System
IP Kulata (BG) / Sidirokastro (GR) Kipi (GR/TR)
The NNGS

1,466 km 1 IP Nea Mesimvria (DESFA-TAP)

High-pressure LNG storage &

pipelines regasification terminal
The Greek NNGS is a
“new”, high quality
4 53 network which
Interconnections Metering & Regulation continues to develop in
Stations order to reach new
areas and users, as well
Agia Triada as to establish new
2 6 Revithoussa
LNG Terminal
interconnections with
Dispatch Operation & other Systems.
Centres Maintenance Centres

1 22
Compressor station Exit points connected to
distr. systems
The growth and liberalization of the Greek natural gas market
Evolution of NG Imports (2010 – 2021 HY) [TWh]
Pipeline Gas LNG Cargoes 2021 2HY Projection
80,0

70,0

60,0

33,4
50,0 31,3
16,6 11,6
13,5 14,8
40,0
7,0 9,0
12,9
30,0 6,8 10,8
6,7
20,0
37,9 38,0 42,0 38,0
36,7 34,8 35,7 33,8
28,8 25,2 27,8 25,8
10,0

0,0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 HY
NGTS
Users 44 55 66 55 6 15 18 21 28 38 48 49
LNG
Users
3 5 3 3 3 3 3 7 12 26 33 33

The volume of NG imports and number of Users have been steadily increasing in recent years

DESFA’s customers include: Wholesale Suppliers | Power Producers | Big Industrial Consumers | Retailers | NG Traders
Greek natural gas market evolution
Increasing Natural Gas Demand Diversity of Supply Sources

Natural Gas Demand Evolution 2018-21 [TWh] 2021 HY Supply Sources

18
80,0
16
70,0 16,9
7,4 14
60,0 7,7
0,1 12
50,0
10 11,7
40,0 8
3,7
30,0 57,4 63,1 6
52,5
20,0 4 6% 6,6
33,8
10,0 2 45% 18% 31%
2,3
0,0 0
2018 2019 2020 2021 Kipi [TR] Sidirokastro [BG] Nea Mesimvria [TAP] Aghia Triada [LNG]
Domestic Exports 2021 2HY Projection
Increasing Market Liquidity at the VTP
NG Domestic Demand Breakdown 2021 [TWh & %]
VTP Trades vs Imports [TWh]
80 80%
5,8%; 70% 60% 75%
70 58% 70%
17%
60 60%
20,4 50 50%
60% 7,6; 40 40%
23% 30 30%
20 20%

52,7

36,7

64,8

37,9

70,5

42,4

37,5

28,2
10 10%
0 0%
2018 2019 2020 2021 HY
Power Producers Big Industries Distribution Networks
Imports VTP Trades Churn Ratio
DESFA’s Ten-Year Development Plan 2021-2030

48 projects of high added value

€540 million total budget

Large scale investments which confirm the key role of natural gas infrastructure
in the energy transition, contributing to the implementation of the National Plan
for Energy and Climate & the Just Transition Development Plan of lignite areas
 Energy Transition will be based on green power and decarbonized gases

DESFA aims to become an essential driver of tomorrow’s energy systems, promoting renewable gases
and power and gas sector coupling

EU Green Deal: net zero by 2050

▪ The pathway to net zero requires fast and sustainable

development of both clean power production and new
renewable gases technology to gradually substitute
today’s fossil fuels.
▪ Decarbonization of the electricity supply remains a key
element towards a carbon-free system, however,
molecules will still be needed for different parts of the
value chain (e.g. balancing and storage, intensive industry,
long-distance transportation, residential thermal needs).
▪ Hydrogen will stand as a key renewable gas (along with
biomethane and synfuels) and play an important role in
the energy transition, as it is a valuable energy source that
can be produced sustainably and distributed widely.
Source:
Energy Transition: DESFA driving towards a decarbonized future for the Greek energy market

Preparing our current and future infrastructure to accept hydrogen Through

Μέσα από αυτέςthis initiatives, we
τις πρωτοβουλίες, aim to:να:
στοχεύουμε
volumes
1. Contribute to the design of national H2
Long term strategy study for renewable gases (to be incorporated strategy and engage in the discussion
for the first time in our Development Study) regarding the ongoing developments on an
EU level
Participation in the national hydrogen committee for the
preparation of the Greek Hydrogen strategy 2. Define and promote DESFA role in the
context of the European and Greek
Participation in all the relevant discussions for EU legislative Hydrogen strategy
amendments (taxonomy, TEN-E, costs for hydrogen infrastructure)
3. Assess the readiness of our system’s
capability to accept hydrogen volumes
Participation in the White Dragon project (IPCEI candidate)

4. Identify and prioritize business

Cooperation with relevant EU associations (Hydrogen Europe, opportunities over the next years
European Hydrogen backbone, ENTSOG, GIE, Gas for Climate, etc.)
5. Identify and prepare pilot hydrogen and
biomethane projects
DESFA’s focus on renewable gases

o Participation in IPCEI proposal for the White

Dragon cluster project
o Developing cooperation with the main energy
companies for H2 projects
o Assessment of the current network regarding
H2 readiness
o Updating our specifications for the expansions of
the network (H2 fully compatible)
o Training Center (N. Mesimvria) to be used as an
R&D center for hydrogen facilities testing
o Participation in a R&D for pyrolysis (with CERTH)
Wholesale gas market development
DESFA at a crossroad of new routes and initiatives: Regional demand patterns & strategic geοgraphical location

Participations
HP Pipeline to
North Macedonia 66 FSRU Alexandroupolis:
Western Macedonia 1 Bulgaria 5 Shareholders: Gastrade
Shareholders: DESFA

2020 2021 2022 2023 2024 2025

Bulgaria
Bulgaria
77
2 77
DESFA’s 10YDP - €500 M within the next 5-year period

Greece
Greece - Bulgaria
Bulgaria
6 Dioriga Gas
North Interconnector (ICGB)
Interconnector (IGB) Shareholders: Motor Oil 100%
3 N. Macedonia Sidirokastro
Sidirokastro
HP Pipeline to Greece- North
- N. Macedonia
Greece Macedonia
Western Greece 2 Interconnector
Interconnector
Kipoi
Shareholders: DESFA

Other developers
Albania
Nea Messimvria (TAP)
Nea Messimvria (TAP entry) 0
9 5
Kipoi
Interconnector
8
Italy 3 1
Pipeline to 6
UGS
South Kavala
7 8 Greece – Bulgaria (IGB):
TAP 8 FSRU UGS Shareholders: DEPA, Edison, BEH
Italy Pipeline
West to
Macedonia FSRU
Italy W. Macedonia South Kavala Alexandroupolis
West Macedonia Alexandroupolis
1

Interconnector
8
Greece – North Macedonia 3 Trans Adriatic Pipeline (TAP)
Shareholders: DESFA 4 Pipeline to
8 Shareholders: BP, Socar, Snam, Fluxys, Enagás, Axpo
Western Greece 5
4 SSLNG & TLS
Revithoussa
2 4 LNG Dioriga Gas
2 6 Terminal
W. Greece 2 4
2 to
Pipeline Agia Triada (LNG)
Revithoussa
Western
5 LNG Terminal
UGS South Kavala

Tender
Small Scale LNG Jetty Greece
Existing lines
& Truck Loading Station
Agia Triada (LNG)
9 Expression of interest to participate
4 Projected lines
in the tender
Entry points
Regulatory reforms, infrastructure developments, business initiatives
3rd rev. NC:
Foundations of
the entry/exit Revythoussa LNG
system terminal capacity
Firm reverse flow expansion
DESFA Gas Hub capability at HEnEx NG Market
Feasibility Study BG/GR IP feasibility study

2015 2016 2017 2018 2019 2020

Interconnection 4th rev. NC: Full 5th / 6th rev. NC:

Agreement with entry/exit system New capacity
BG (VTP, Bal products / new
Platform, Paper access regime in
Traders) Revithoussa
DESFA Completion of
participation in HEnEx NG Market
HEnEx feasibility study
 VTP over-the-counter and balancing trades
Total quantity traded and churn ratio of OTC market
7000 1,20

6000
• 65% (3-year average) 1,00
of the quantities
entering the system 5000
are traded before 0,80

Quantity traded [GWh]

exiting

Churn ratio [-]

4000
• Traded quantities for
operational balancing 0,60
represent a very small 3000
percentage of the total
trading volume (in line 0,40
with mature 2000
trading/balancing
systems at EU level)
0,20
1000

0 0,00

OTC Quantity traded BG Buy Quantity BG Sell Quantity Churn ratio

Next step: A spot gas market by DESFA and Hellenic Energy Exchange
o Products: o Actions completed:
o Within-day (D) and day-ahead (D+1, D+2, D+3) o Full documentation sent to NRA Mid-June
o Trading mechanisms: 2021
o Auctions, continuous trading + registration of o 1st stakeholder workshop 12 July 2021
OTC trades o End of public consultation 21 Sep 2021

o Clearing mechanism:
o Central Counter Party (CCP) through EnExClear o Next steps Q4 2021
o Entities allowed: o Approval of regulatory documents
o Physical and paper traders (having a contract o Users’ training/certification/workshops
with DESFA - Users of the NNGTS) o Dry-runs

o Prices: o Go-live

o Within-day spot index

o Day-ahead spot index
o Balancing gas marginal prices
Thank you for your attention!