P. Tzannetakis: CCGT in Komotini with GEK TERNA is a strategic move for Motor Oil

The Deputy CEO of the energy group described the investment decision taken jointly with GEK TERNA for the construction and operation of the 877 MW power plant with natural gas fuel in Komotini as a “good strategic move” for Motor Oil.

Petros Tzannetakis during the teleconference with the analysts about the financial results of the first quarter was asked about the announcement of the investment of 375 million euros for CCGT (Combined Cycle Gas Turbines) and specifically about the reasons that Motor Oil undertook this project: “For the power plant, which was licensed by TERNA, we decided to increase the available power to 877 MW from 665 MW, while at the same time it has a high efficiency of 64%. It is the highest in relation to all the other power stations that have been announced in Greece “, he noted and continued:

Vertical group in electricity

“It’s a good strategic move. Forecasts show an increase in electricity demand for the next 15 years. “RES are also rising, but PPC’s lignite units are also being withdrawn”, he said, obviously noting the need for immediate coverage of electricity needs, but also the time required so that RES together with storage systems can respond at any time to demand. He also added that the new CCGT will offer an IRR (Internal Rate of Return) of 10 to 13% and predicted a dynamic operation with promising revenue.

He also explained that “with this move we enter the market as a vertical group. We need electricity generation since the Greek market is still incomplete”. Mr. Tzannetakis, when asked if he is considering the possibility of investing in another unit, answered negatively: “We are sufficient in production. We also have an electricity supply company, NRG. When we acquired the company it had 9,000 customers and today it has 150,000 “.

Analysts also asked the Deputy CEO of Motor Oil for information on the CCGT financing scheme. As he said, 75% will come from bank loans and 25% from equity. Each company will contribute from 50 million euros.

He also referred to the plans for RES, saying that the first goal in which the company is moving is 600 MW. In 2022, 364 MW projects will be completed and Motor Oil will select from the portfolio a total capacity of 600 MW to achieve the aforementioned goal.

Purchase of fuel

In the teleconference with the analysts, there was a discussion about the purchase of petroleum products.

Mr. Tzannetakis spoke of “glimmers of optimism despite the pandemic and the variability of refining margins.” As he made known to Motor Oil, they see signs of recovery of the internal market of motor fuels from April until the period we are going through, i.e. June. He expressed the belief that the demand in June can reach the levels of 2019.

However, he was pessimistic about the aviation fuel market. The deputy chief executive sees a recovery in 2023, due to travel restrictions.

Motor Oil for 2020, according to him, endured and in 2021 is ready to return to success. Mr. Tzannetakis stressed that the exports of the first quarter were those that limited the losses of the internal market of fuels, while the production capacity of the refineries of Corinth was higher compared to last year.