Greece is advancing electricity interconnections and gas supply projects to build a two-way energy gateway between the eastern Mediterranean, Southeast Europe and wider European markets. A preliminary feasibility study estimates construction costs for a proposed Greece-Germany electricity link at up to €15 billion.
The link would allow Greek solar electricity to flow north and northern European wind power to be imported when Greek output is low. Greece is also promoting new electricity connections with Albania and Turkey for 2031, while a second Greece-Italy interconnection is planned for 2033.
A separate study estimates the Greece-Cyprus link could deliver €123–138 million in annual consumer benefits, mainly in Cyprus. The project is expected to reduce renewable-energy curtailment and end Cyprus’s electrical isolation.
LNG supply and gas development
Metlen and Shell have signed a five-year LNG supply agreement due to start in 2027. Shell will supply six cargoes a year, equivalent to about 600 million cubic metres of gas, which Metlen can market in Greece or elsewhere in Europe.
The contracted volumes could also move through the Vertical Gas Corridor toward Southeast and Central Europe. The agreement adds a gas-trading route alongside the planned electricity links.
In Cyprus, the Cronos gas development is advancing into execution, with a project value of about $2.2 billion. Petrojet won work that includes a 57 km pipeline connecting the development to Egyptian infrastructure for processing and liquefaction.
Cross-border utilisation remains key
The electricity and gas projects are strengthening the eastern Mediterranean’s role as an interface for energy flows into Southeast Europe. Greece’s intended gateway role is to export renewable electricity when output is abundant and import or trade LNG and power when regional scarcity rises.
The model depends on cross-border utilisation: cables, LNG terminals and trading portfolios create the most value when regional markets are connected and price differences justify flows. The expansion of infrastructure faces uncertainty over whether it can outpace demand volatility and financing costs.
