The Kavala (Northern Greece) LNG export terminal

Kavala is a major Mediterranean port, strategically located in Northern Greece (see Figure 1). The city has been considered, with increasing frequency in recent years [3,5], as the site of a large LNG reception/storage/regasification terminal, which can serve as the gateway of Middle-Eastern gas exports to Central and Western Europe, in conjunction with the rapidly expanding European gas-pipeline transmission network. Despite the higher capital and operating costs of an LNG transportation option, compared with a land-route one, the former is still an attractive option, for two major reasons :

It carries no risk of supply interruption from transit countries
It offers potential LNG-vessel access to alternative gas suppliers, in case of supply interruption from Iran
The unit transportation cost for the LNG option of Iran-to-Western Europe gas supplies has been estimated between 2.76 USD/MMBTU [5] and 3.15 USD/MMBTU [3], excluding the land-transit portion (i.e. the part from the LNG terminal-or terminals-on the North Mediterranean coast to the main West European gas consumption centers). The above unit transportation costs have been derived as arithmetic averages of three (3) potential LNG destinations : Northern Greece (Kavala), Italy and Spain – France (e.g. Fos-Sur-Mer). Obviously, the Kavala LNG terminal corresponds, by far, to the shortest LNG transportation distance from the Middle East, and, thus, to the lowest unit transportation cost.

Another concept, which has been introduced lately, pairs the Kavala LNG receiving terminal with an adjacent gas liquefaction facility, that would enable Russian pipeline gas to be exported (as LNG) to non-conventional destinations, such as Israel.

World Energy Organization

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