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DEDA investing 250 mln euros to expand gas network to 39 Greek cities

Featured DEDA investing 250 mln euros to expand gas network to 39 Greek cities

Public Gas Distribution Networks SA (DEDA) is currently implementing a plan to extend the gas network to 39 Greek cities, including lignite-producing regions, in order to supply not just households and businesses but also maintain the district heating systems currently provided to residents by the Public Power Corporation's lignite-fired units, DEDA CEO Marios Tsakas told the Athens-Macedonian News Agency (ANA).

In an interview released on Sunday, Tsakas said the 250-million-euro investment in expanding the network will be frontloaded as it is expected that, in the next two years, the customers for natural gas in Greece that connect to the new networks will correspond to roughly half the natural gas consumers in Attica, where the networks have been under construction for more than 20 years.

The natural gas will be transported either through a pipeline (via the existing Hellenic Gas Transmission System Operator S.A. network or the Trans-Adriatic Pipeline going into operation this year), or transported in tankers in either compressed (CNG) or liquid (LNG) form.

The delayed first phase of the plan, originally announced last year, will include a total of 18 cities in: Eastern Macedonia-Thrace (Alexandroupolis, Drama, Kavala, Komotini, Xanthi and Orestiada), Central Macedonia (Alexandria, Veria, Giannitsa, Katerini, Kilkis and Serres), and Central Greece (Amfissa, Thiva, Karpenissi, Lamia, Livadia and Halkida). Tenders are currently underway for the construction of the networks and are to be fully concluded in September, at which time the work is to begin. Tsakas noted that consumers can apply to connect to the natural gas grid on DEDA's electronic platform due to open in April.

The second phase will see an expansion of the network to cities in Western Macedonia - including Ptolemaida, Amyntaio and Kozani that currently have district heating from PPC power plants, enabling this to continue after lignite is phased out - to Western Greece, Epirus and the Peloponnese. For cities in the second phase, preliminary studies have been carried out and tenders will be initiated in 2021.

The next stage in the process will see natural gas reach the islands, in a programme linked to the electricity interconnections with the mainland grid, the local market and other factors. The construction of LNG infrastructure on Crete to generate electricity for the island also creates prospects for supplying businesses, agriculture and households with natural gas that will be taken to towns in tankers, Tsakas said.

DEDA will be included in Public Gas Corporation (DEPA) Infrastructure, which will be formed by the gas distribution sector is split from DEPA, which currently in the process of privatisation. The deadline for submitting Expressions of Interest for a 100 pct stake in DEPA Infrastructure, which will include DEDA, the Attica gas distribution network company and 51 pct of the Thessaloniki-Thessaly gas distribution network company ends on February 14.