20101231-IEA-Oil_and_Gas_Emergency_Policy_Greece_2010_update_18页_1mb

Summary of Greece's Energy Outlook and Oil/Natural Gas Policies

Core Content

Greece relies heavily on oil as its dominant energy source, contributing approximately 55% of the country's total primary energy supply (TPES) in 2008. The country's TPES almost tripled between 1973 and 2008, with an average annual growth rate of 3%. It is forecasted to remain flat at about 32 Mtoe until 2020, with oil and natural gas together expected to account for around 70% of the TPES by 2020.

Key Oil Data

• Oil Production (kb/d): Declined from 27.1 in 1985 to 1.1 in 2009.
• Oil Demand (kb/d): Increased from 399 kb/d in 2000 to 450 kb/d in 2007, then decreased to 409.6 kb/d in 2009.
• Crude Oil Imports (kb/d): 358 kb/d in 2009, with OPEC countries (especially Saudi Arabia, Iran, and Libya) and the former USSR as major sources.
• Refined Product Imports (kb/d): 143 kb/d in 2009, with 40% from OECD countries and 16% from Russia.
• Refining Capacity (kb/d): Around 490 kb/d, with Hellenic Petroleum owning two-thirds of the capacity.
• Import Dependency: Reached 99.7% in 2009, with Greece being a net exporter of gasoline.

Oil Supply Infrastructure

• There are 10 oil terminals, with 7 in the Attiki Area (Athens) and 3 in Salonica.
• 6 terminals accept crude oil, with 4 near refineries.
• Two oil pipelines are in operation: one connects Thessaloniki to the Octa refinery in FYRO Macedonia, and another connects Aspropyrgos refinery to Athens International Airport.
• An international pipeline project is planned to transport Russian and Caspian oil from Bulgaria to Greece, bypassing the Bosporus Straits.

Emergency Oil Response

• The Oil Crisis Management Committee is the core body for oil emergency management, composed of 15 members including representatives from various ministries and industry.
• Law 3054/2002 requires importers and large end-users to hold 90 days of oil stocks equivalent to their net imports.
• 70% of emergency reserves are in the form of refined products.
• All compulsory stocks must be maintained within Greece, and no bilateral agreements are in place with other IEA members.

Oil Company Operations

• Hellenic Petroleum and Motor Oil Hellas are the main players in the refining and retail sectors.
• Hellenic Petroleum owns two refineries in Athens and one near Thessaloniki, while Motor Oil Hellas owns one in Corinth.
• The Greek retail market is moving toward consolidation, with Hellenic Petroleum acquiring BP and Motor Oil Hellas acquiring Shell, increasing their market share to 28% and 21%, respectively.

Other Measures for Oil Crisis

• Demand restraint measures include promoting public transport, reducing speed limits, and encouraging carpooling.
• Compulsory measures may involve driving restrictions, limited service station hours, and fuel supply restrictions to retail companies.
• Fuel switching is not widely available, especially on islands where natural gas is scarce.
• Surge production is not considered an emergency response measure due to minimal domestic production.

Natural Gas Overview

• The share of natural gas in Greece's TPES increased from 0.6% in 1990 to 11% in 2008.
• Natural gas demand grew at an average rate of 9.4% per year from 2002 to 2008, peaking at 4.2 bcm (11.5 mcm/d) in 2008, and then dropping to 3.5 bcm (9.7 mcm/d) in 2009.
• Natural gas imports in 2009 were 3.6 bcm (9.7 mcm/d), with Russia as the principal source (57%) followed by Algeria (22%) and Turkey (20%).

Natural Gas Supply Infrastructure

• There are three entry points for natural gas: Promahonas (via Ukraine, Moldavia, Romania, and Bulgaria), Kipoi (from Turkey), and LNG terminals.
• DEPA (Greek Public Gas Corporation) has long-term contracts with Gazexport (Russia), Sonatrach (Algeria), and Botas (Turkey), totaling 4.25 bcm per year until 2016.
• DESFA, the Transmission System Operator (TSO), plays a major role in managing natural gas supply and emergency situations.

Emergency Natural Gas Policy

• Fuel switching at power stations is possible for 4 out of 7 thermal units, but not widely implemented.
• In case of a gas crisis, priority-based interruption of gas supply, LNG terminal reserves, and emergency stock allocation are expected measures.
• DESFA is responsible for emergency planning and managing crisis situations, and may implement the Draft Joint Ministerial Decision to regulate the distribution of emergency reserves.

Key Figures and Trends

• Import dependency for crude oil fell from 71% in 2004 to 59% in 2009.
• Crude oil production in 2009 was 1 kb/d from the Prinos offshore field.
• Natural gas production in 2009 was only 9 mcm (0.02 mcm/d).
• LNG terminal projects are in development, including a 3.5 billion euro terminal in western Greece with Qatar.

Conclusion

Greece has a highly import-dependent energy system, particularly for oil and natural gas. While oil remains the dominant energy source, natural gas is gaining importance due to its role in electricity generation. The country's emergency response strategies for both oil and natural gas focus on stockholding obligations, demand restraint, and fuel switching. Infrastructure development and diversification of supply sources are key to enhancing energy security.