As Ukraine halted Russian gas supplies to European countries through its pipeline network on Wednesday, January 1 after a prewar deal expired, Europe has raised concerns about whether it can meet its energy needs. However, Greece and other countries that get their natural gas supplies from a pipeline that bypasses Ukraine should remain largely unaffected, according to various reports.
Europe consumes 330 billion cubic meters of natural gas per year. The disruption affects the flow of 15 billion cubic meters of gas originating in Russia, previously delivered to Central Europe and the Balkans through Ukraine’s pipelines. European officials givan assurances that the shortfall will be addressed by measures that are already in place.
According to reports in OT.gr and insider.gr, Greece will not be affected because since 2020 its Russian natural gas supplies rely on the TurkStream pipeline, which traverses the Black Sea, passes through Turkey and reaches Greece via Bulgaria and the National Natural Gas Transmission System at Sidirokastro in northern Greece. Moreover, Greece imports smaller quantities of gas from Azerbaijan through the TAP pipeline. A major component of Greece’s energy strategy is the LNG terminal at Revithousa, which, aside from supporting domestic needs, also supplies Balkan countries affected by Moscow’s pipeline closures through the IGB (Interconnector Greece-Bulgaria) pipeline. The newly operational Alexandroupolis Floating Storage Regasification Unit (FSRU) in northeastern Greece imports liguid natural gas, regasifies it and supplies it to both domestic and Balkan markets.
Greece’s heavy dependence on Russian gas
Up until four years ago, over 60 percent of Greece’s domestic natural gas consumption originated from Russian Gazprom, and reached Greece through the Ukrainian pipelines. In the first eleven months of 2024, Russian gas accounted for over 56 percent of Greece’s total gas imports.
In order to curb its reliance on Russian gas, Greece has invested more resources in renewable energy systems (RES), which currently generate 55 percent of the electricity consumed by Greek households and businesses.
At the same time however, energy prices remain a major concern across Europe. The war in Ukraine has already pushed TTF gas prices up, which recently surged to 49 euros ($50) per megawatt-hour. Gas power plants consume over half of the five billion cubic meters Greece imports annually, meaning price fluctuations have a direct impact on electricity costs.
Greece’s emerging role in the LNG market
The commercial operation of the Liquefied Natural Gas (LNG) Hub in the northeastern Greek city of Alexandroupoli turned a new page for Greece’s energy sector and Greece is becoming an energy hub for the Balkans and Europe as a whole.
The floating storage and regasification unit (FSRU), partially funded by the European Commission, aims to lessen southeastern Europe’s reliance on Russian gas.
The project includes a network of submarine and land pipelines that transport natural gas into Greece. This is then distributed to consumers domestically, as well as to Bulgaria, Romania, North Macedonia and Serbia. The web of pipelines extends further east to Moldova and Ukraine, as well as west to Hungary and Slovakia.
Greece’s goal is to become an energy gateway for Southeast Europe, supplying both natural gas and electricity through its LNG hub.
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