The advancement of the Thrace floating LNG terminal in Greece is contingent upon Gastrade’s ability to secure long-term supply commitments from Central and Eastern European buyers. The project, estimated at 650 million euros and spearheaded by a consortium that includes Copelouzos Group, is currently in the process of negotiating 15-year contracts that are essential for a final investment decision. If these binding agreements are finalized promptly, the terminal could receive the necessary approval by early 2027, paving the way for operations to commence in 2028. This development aims to bolster Greece’s position as a significant regional gas hub.
In conjunction with commercial negotiations, discussions regarding financing have intensified with institutions such as the US Development Finance Corporation and Export-Import Bank of the United States. This aligns with broader U.S. initiatives supporting the Greece-Ukraine Vertical Gas Corridor and reflects the European Union’s efforts to enhance strategic energy infrastructure following reduced Russian gas supplies.
Market analyses underscore an urgent need for new LNG capacity. According to projections from ENTSOG, Southeastern Europe could face a supply shortfall of approximately 35 billion cubic meters (bcm) over the next few years. While Romania’s Neptun Deep project may contribute an annual output of 7–8 bcm, this will leave a considerable gap likely to be filled primarily 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 extending beyond the existing Revythoussa LNG Terminal and Alexandroupoli LNG Terminal, Greece’s export potential may remain constrained. However, operating two floating storage and regasification units (FSRUs) in proximity could yield commercial synergies, enabling up to 50–60 LNG cargoes annually and generating substantial trade flows that would enhance the economic viability of these projects over the long term.
