A proposed floating storage and regasified unit-based liquefied natural gas import project in Greece has moved a step closer to coming to fruition.

Greece’s gas transmission system operator and Revithoussa terminal operator DESFA has signed an agreement with Motor Oil company Dioriga Gas for Motor’s planned FSRU project in the Gulf of Corinth.

The companies have signed a reservation of capacity agreement for the construction of the connections between the FSRU and DESFA’s gas grid.

Motor Oil envisages installing the LNG receiving and regasification terminal near to its refinery in Corinth, west of the Greek capital Athens.

The FSRU, which is set to have annual capacity of up to 2.6 billion cubic metres of gas, is targeting operational start-up in 2023.

DESFA chief executive Maria Rita Galli said the deal marks a step forward for a new gas import infrastructure project that would further enhance the role of Greece as Southeast Europe’s international energy hub.

“DESFA ensures open access to the national natural gas system, steadily fostering the development of competition in the Greek energy market, with significant benefits for the country, the Greek economy and the final consumer,” she said.

Motor Oil — which has a natural gas supply portfolio corresponding to 10% of the Greek natural gas market — is addressing industrial and large commercial consumers for their natural gas supply needs, according to a statement on the company’s website.