As operators of the Alexandroupolis LNG Terminal project, Gastrade is responsible for the safe provision of gas infrastructure in Greece and Southeastern Europe. MD Konstantinos Sifnaios outlines his vision for the company.
Q: How did Gastrade get started?
In 2009, we filed the first formal application to the regulator for a licence for the development of the Alexandroupolis LNG Terminal project; it took us until 2015 to complete the process. We educated the public administration on the concept we are trying to promote and worked with them to shape the legal and regulatory framework necessary to support commercial construction and operation of the terminal.
Q: What was the company’s founding vision?
Our vision was to develop an independent private company and infrastructure project that would provide a reliable alternative supply and commercially sound solution to both governments and enterprises. Customer engagement was always at the forefront of our minds, and we focused on building relationships and supporting the real needs of our customers.
Q: What were your guiding principles during this time?
We understood that we needed to be flexible to be able to respond to the needs of the market. Over time, we also understood that we need to be adaptable to the evolution of the market, particularly in relation to the green agenda and new products such as biofuels, biomethane and hydrogen. We need to closely follow the developments in technology to be able to adapt and effectively serve these new products.
Q: How do clients and prospects perceive Gastrade today?
As a reliable and responsible partner who is sensitive to environmental regulations and fully compliant with the legislation. We have been welcomed by the market with enthusiasm and have been trusted by 14 major customers and partners, who have already reserved capacity at our project. We have fully sold our capacity, but that does not mean we are not open to new customers and partners.
Q: Which regions do you supply?
We are focusing on the region of Southeastern and Central Europe, which represents our core market. We have reached all the way to Moldova, but we are also looking at Central Europe – Slovakia, Hungary and Ukraine. We anticipate a lot of growth in that region and that there will be a significant demand for more energy and gas.
Q: How is energy transition impacting the sector?
We are transitioning from fossil fuels to greener alternatives, but I think gas will stay with us for at least the next 25 to 30 years. The European Commission has recently published a roadmap for the elimination of Russian gas imports across Europe. If that materialised, it would create greater demand for alternative gas sources in this region. Greece is very much strategically positioned to be a critical entry point for the wider region, especially for energy.
Q: What advantages does Gastrade offer as an infrastructure hub?
The location of our projects is strategically important because it is close to the markets we want to supply and is at the crossroads of existing and planned infrastructure. The Trans Adriatic Pipeline is crossing this area and there is also an interconnection with Bulgaria, which has been developed and is operating. We have excellent access to this market.
Q: Are there opportunities for German investors?
I can see several synergies between our terminals and German terminals. The location of Germany’s LNG terminals has a reach to Central Europe, where gas can flow from both the north and the south. However, as you move further south, it becomes less competitive for gas imported from Germany. If anyone is interested in developing a more global supply position in Europe, then this is where constructive collaboration through investment in our terminals could be realised.
Q: What about wider investment opportunities?
I would not limit the opportunities to just the natural gas sector because there is a lot of investment going into Greece. Greece is a stable and developing member of the European Union, and in recent years we have seen a steady increase in international investment. There will be more opportunities in energy than just focusing on gas – such as through the development of new energy infrastructure in gas-fired power plants that use German components, engineering and technology.
Q: How do you balance growth with sustainability?
Greece became the first country in the region to implement plans to fully decommission coal and lignite power plants, with the focus on renewable energy sources such as wind and solar. Through our project we are actively promoting the substitution of coal with gas. As technology develops, our aim is to adapt and use existing infrastructure to accommodate and promote non-fossil fuels.
Q: What are the practical implications of this approach?
We are exploring options and technical solutions to introduce carbon-neutral technology in our energy mix and reduce the carbon footprint throughout the region. Our second project, which is under development, will be flexible and ready to accommodate and adapt to the latest advancements. Naturally, we need to be commercially sound and successful to ensure we can push through with our plans, but this is about moving with the market and, where it is possible, going ahead of the market.
Q: What factors underpin Gastrade’s investment appeal?
Firstly, we address a growing and developing part of Europe. There is a lot of opportunity and growth potential in Southeastern Europe. We also operate in Greece, a country that provides both political and financial stability. Greece is a predictable place to invest with numerous competitive advantages because of its geographical location for services, infrastructure and technology industries. Energy is an especially critical area to invest in, particularly with projects like ours that bear a competitive advantage, not only for Greece, but for the region and Europe as a whole.
