The development of the Thrace floating LNG terminal is contingent on Gastrade’s ability to secure long-term supply commitments from Central and Eastern European buyers. This €650 million initiative, spearheaded by a consortium that includes Copelouzos Group, is advancing alongside negotiations for 15-year contracts that are essential for a final investment decision. If binding agreements are finalized as planned, the project could receive a green light by early 2027, paving the way for operations to commence in 2028. This would bolster Greece’s position as a significant regional gas hub.
In conjunction with these commercial negotiations, discussions regarding financing have gained momentum with the US Development Finance Corporation and the Export-Import Bank of the United States exploring potential involvement. This aligns with broader US initiatives supporting the Greece-Ukraine Vertical Gas Corridor and the European Union’s efforts to enhance strategic energy infrastructure in response to reduced Russian gas supplies.
Market analyses underscore the urgent need for new LNG capacity, with ENTSOG projections indicating that Southeastern Europe may encounter a supply shortfall of approximately 35 billion cubic meters (bcm) in the near future. While Romania’s Neptun Deep project is expected to contribute around 7–8 bcm annually, this will leave a significant deficit that will likely be addressed through increased LNG imports.
The establishment of a second floating terminal near Alexandroupoli could facilitate an additional 5–6 bcm of gas annually to neighboring markets. Without further expansion beyond the existing Revythoussa and Alexandroupoli LNG terminals, Greece’s export capabilities may remain constrained. The operation of two floating storage regasification units (FSRUs) in proximity could yield commercial synergies, enabling up to 50–60 LNG cargoes per year, which would generate substantial trade flows and enhance the economic viability of the project over the long term.
