Eastern Mediterannean LNG Hub

proj_logo_medlngCONTACT

Rudolf Huber
Email: me (at) methanist (dot) com
Call me at +43 699 1518 9273
Skype: rudolf.huber.office

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BREADCRUMBS

Location: Greece, Cyprus (Eastern Mediterranean)
Type of project: LNG receiving terminal / Hub / island distribution / Bunkering
Assumed initial capacity: from 3.000.000 to 6.000.000 metric tons of LNG per year
Estimated CAPEX: USD 600 MM (depending on configuration)
Estimated investment requirement for development: USD 35 MM
Estimated time from DTP to RFO: 40-48 months

 

SYNOPSIS

proj_map_medlngMedLNG aims at developing and building as well as operate an LNG regasification and re-distribution terminal in the Eastern Mediterranean Sea. It will buy LNG from the open market and after bulk breaking into smaller cargos, transport them to islands and isolated continental communities in the entire Eastern Mediterranean. It will also sell regasification and re-distribution capacity to third party buyers of such capacity on a long-term as well as on a spot basis.

MedLNG aims at providing a barebones marine distribution network in order to allow power generation operators to make the switch to LNG as a fuel for their generational needs.

After a successful startup, MedLNG will also run a study to expand into other areas of business such as bunkering and vehicle fueling in order to exploit the current drive for cleaner fuels worldwide. This is, however, not in the scope of phase one of the project.

MedLNG will allow its customers to make the switch from costly and dirty Diesel and Heavy Fuel Oil as well as coal to the cleaner and cheaper LNG as a primary energy and fueling source. It will also allow Greek islands and other countries around the Mediterranean Sea to comply with the Alternative fuels directive that imposes such infrastructure in the EU as of 2025.

 

CUSTOMERS, MARKETS & BUSINESS MODEL

Power supply on small islands is a challenge as it’s not easy to integrate them into grids as it is done on the continent. The grid brings scale that allows technologies such as renewable energy to get balanced out for use by consumers. Those islands often have to resort to diesel, coal or HFO power generation as backup which is wasteful, expensive and very dirty. Natural Gas would be perfect as an energy source but building pipelines to every island is often too expensive.

LNG is the only economically viable solution but most LNG vessels bring huge amounts of LNG, much more than a small island can digest. The cargo needs to be broken down into smaller cargos which must be transported by smaller ships to small receiving terminals. That’s what MedLNG is planning to do.

MedLNG wants to be the logistical and storage solutions in order to gasify the islands of the Eastern Mediterranean. The hub is going to be placed on one of the big islands in order to serve as a conventional regasification terminal as well.

 

TIMELINE, FINANCIAL REQUIREMENTS, AND MILESTONES

The promoters have already made contact with interested parties in the region and also have run superficial economic evaluation. That being said, most of the work needs to be redone in order to ensure proper dimensioning of the hub as well as the satellites.

A business plan can be developed in a few months after which direct pilot client acquisition can start at once. Any interested investor would look forward to funding a development phase of no less than 6 months where all the relevant studies must be conducted and agreements need to be negotiated.

DISCLAIMER

This project concept and all information therein is the sole property of The Methanist. By visiting this project concept you understand that even if you contact me, there is no obligation on my part to even respond you. If I respond this does not constitute any form of agreement to continue communication with you and/or to pursue this project with you. Please read the disclaimer for more information.

 

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Eastern Mediterannean LNG Hub