Azerbaijan, Greece and Energy Security

in SEE

Harry Sachinis, Chairman & CEO

DEPA, the Greek Public Gas Corporation
SEE and Italy are estimated to have a gas supply gap of
about 45 bcm by 2025, creating an urgent need for new
sources and routes
Greece – A growing market (driven by Italy – A liberalizing market seeking to
power generation) in need of new supply further diversify supplies

Rest of SEE – Single external source

dependency and need for diversification

1
*Contracted supply includes import contracts and domestic production. Expiring contracts are assumed to be
fully or partly renegotiated
A Southern Energy Corridor would significantly strengthen
the region’s security and diversification of supply
Additional export
capacities to EU
Russia limited by lack of
(44 Tcm) investments and
SEE increasing domestic
Gap: 44 bcm (2025) and far-east demand
89%* dependence
on single source

Caspian
Region**
(11 Tcm) The Southern
Corridor would
Limited permit the EU to tap
upside Middle into vast proven
production North East# reserves of 46 Tcm
potential and Africa Egypt (33 Tcm)
partially (6 Tcm) (2 Tcm)
exported via
LNG

Source: BP Statistical Review of World Energy 2010 *Excludes Italy

Traditional external supply sources ** Azerbaijan, Kazakhstan, Turkmenistan
Potential new supply sources # Iran, Iraq

2
The ITGI System can spur the development of the
Southern Corridor because…

It is the most mature and advanced

project of the Corridor

Its volumes are commensurate with

the SD-2 volumes and timing

5 It is scalable, allowing progressive

1
Bcm expansion to meet demand growth
Bcm
2014
128 It allows for phased growth of the
31 Corridor (Phase 1- ITGI, Phase 2 –
Bcm
Bcm Bcm
Bcm Operational
large infrastructure such as Nabucco)
2017

It provides for reverse flows,

thereby facilitating greater
flexibility and security

It reinforces the prospects for

developing new interconnections,
enabling supply to the whole region

3
Greece is an emerging gas hub, facilitating the
development of a liquid regional market that can…

Transit Caspian gas to SE

Europe and beyond

Strengthen security and

diversification of supply in the
region

Promote gas-to-gas
competition

Allow spot and virtual gas

exchanges

4
Conclusions

Expected demand growth and the expiration of import contracts will lead to a
significant gas supply gap in SEE and Italy

The Southern Energy Corridor is of critical importance to the SEE gas markets
as a means of both covering future demand and strengthening security and
diversification of supply

The ITGI system can open the Southern Corridor and is the best option for the
transportation of Shah Deniz – 2 gas to European markets, due to its timely
development and size

Greece’s likely emergence as a gas hub will facilitate the flow of Caspian gas to
a liquid regional market in SEE

5
DEPA, together with its strategic partners, is at the
forefront of gas market developments in Greece and the
SEE region

Retail &
Distribution Infrastructure

Supply
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