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Newsletter May 2010

INVESTMENT NEWS

Abu Dhabi Mar, Qatar Eye Greece
The shipbuilding group Abu Dhabi Mar (ADM) announced its decision to invest in Greek shipbuilding through the acquisition of a majority stake in the Hellenic Shipyards S.A. at Skaramangas. In addition, the State of Qatar has expressed its intention to commit to a major, 3 billion Euro investment in the Industrial region of Astakos.

Abu Dhabi Mar
The shipbuilding group Abu Dhabi Mar (ADM) announced its decision to invest in Greek shipbuilding through the acquisition of a majority stake in the Hellenic Shipyards S.A. at Skaramangas.

The new consortium scheme is to be headed by ADM, with 75.1% stake in Skaramangas, and will include former owner ThyssenKrupp Marine Systems (TKMS), with a 24.9% share.

Founded over 50 years ago, Hellenic Shipyards S.A. is the largest shipyard in the Eastern Mediterranean. It enjoys a global standing for its long tradition in building and repairing naval and commercial ships.

Minister of Economy, Competitiveness and Shipping Louka Katseli noted that the agreement would secure sustainable solutions for strategic planning in the sector of Greek shipping and create new jobs.

Qatar Eyes Investment in Astakos
The State of Qatar has expressed its intention to commit to a major, 3 billion Euro investment in the Industrial region of Astakos, on Greece’s west coast.

According to Minister of State Haris Pamboukis, who spoke with the Qatari Deputy Prime Minister and Minister of Energy and Industry Abdullah bin Hamad Al Attiyah, the Gulf State intends to participate in building a LNG terminal, a nat-gas electricity production plant, and a biomass unit.

The investment would be a major step in Greece’s efforts to boost its green economy.

The investment is expected to create more than 1500 new jobs in Greece. Qatar, one of the world’s largest producers and exporters of liquid natural gas (LNG), would ship LNG to the Astakos facility, 400-500 million cubic meters of which would power the electricity production unit, and the remainder, the bulk of the gas, would be distributed to other areas of Greece and exported to the markets of Bulgaria and Italy. 

To fully utilize the terminal it will have to be connected to the National Natural Gas Network, either through the planned Greek-Italian pipeline, part of which crosses Thesprotia, or by constructing a new branch. It is estimated that the unit would generate between 400-500 MW annually. As a source for Italy, the Astakos facility would double the volume of the pipeline.

In addition, the facility would divert the carbon monoxide generated as emissions while producing electricity to spur the growth of algae for biomass (biofuel) production. This innovative scheme follows the principles of a closed loop system, in which all elements are used for a productive purpose. A similar system (electricity production-algae production) is used by the Italian energy provider ENEL in Venice.