Greece, Bulgaria score Russian gas hat trick

Greece and Bulgaria advanced this week in the development of three natural gas projects that will reduce the two countries’ dependence on Russian gas.

The Greek parliament ratified on January 26 a cooperation agreement on the Greece-Bulgaria interconnection gas pipeline (IGB) and the founding treaty of the EastMed Gas Forum (EMGF), while two days later the Bulgarian state-owned company Bulgartransgaz gas company has finalized an agreement to take 20% of the Greek company. Gastrade, which is developing the floating LNG reception, storage and regasification unit in Alexandroupolis (FSRU). The Public Gas Corporation of Greece, DEPA and GasLog, also hold 20% stakes in the LNG facility, which is expected to begin operations in 2023.

“Bulgaria’s commitment to buy 20% of the Alexandroupolis LNG terminal is excellent news, Charles EllinasOn Jan.28, a senior member of the Global Energy Center, Atlantic Council, told New Europe.

The LNG terminal, which will have an estimated annual capacity of around 5.5 billion cubic meters, will aim to supply gas to South-Eastern Europe via IGB. “Not only does this strengthen this project, but it also fits well into the IGB interconnection project, of which Bulgaria is a co-owner. The synergy and combination of the two projects strengthens Greece’s strategic role in the region, but also guarantees the diversity and security of gas supply for both countries, opening up another supply route than the Russian gas pipeline. Ellinas added.

The IGB gas pipeline, under the current circumstances, is expected to be completed by the end of 2021, Greece’s Environment and Energy Ministry said in an emailed note Jan. 26.

The pipeline is expected to reduce Greece and Bulgaria’s dependence on Russian gas, as at its point of departure in Greece, the pipeline will connect to the Trans-Adriatic Pipeline (TAP) and the network of the transport operator of Greek natural gas. DESFA at the end. It will be connected to the system of the Bulgarian gas operator Bulgartransgaz. “By supplying gas from an additional input source, IGB will improve security of supply in South East Europe,” said the Greek Energy Ministry.

With the signing of a Memorandum of Understanding between Greece and Bulgaria in 2009, the foundations were laid for the construction of the interconnection gas pipeline between the two countries, the Greek ministry said, adding that the work of the IGB had been described as a project of “National importance” by Greece, as well as by the Bulgarian Council of Ministers.

On October 10, 2019, during a special ceremony in Sofia, the Intergovernmental Agreement for the Promotion of the Gas Pipeline between the two countries was signed. The agreement was ratified by the Bulgarian Parliament on July 2, 2020 and has already been transmitted to the Greek Parliament for ratification.

The IGB gas pipeline will connect Komotini in Greece to Stara Zagora in Bulgaria. The length of the pipeline is estimated at 182 kilometers, of which 151 kilometers are in Bulgaria and the remaining 31 kilometers in Greece. The diameter of the pipe reaches 32 inches (813 mm).

The capacity of the gas pipeline reaches 3 billion cubic meters per year at an estimated cost of 220 million euros, with the possibility of reverse flow. The capacity can be increased to 5 billion cubic meters per year with the additional installation of a compressor station. The project also includes the necessary support facilities.

The design, construction and operation work was carried out by the ICGB consortium. The company’s shareholders are 50% of the Greek company Poseidon, in which DEPA and the Italian company Edison participate equally, and for the remaining 50%, the Bulgarian state-owned company Bulgarian Energy Holding (BEH).

The European Energy Recovery Program / PEER finances 20% of the project, since the IGB has been included in the list of projects of common interest of the EU.

As of December 2020, 52% of the project was completed, while 37% of the pipeline had been built.

The Greek Energy Ministry reiterated on January 26 the geopolitical importance of the construction and operation of the IGB project, noting that the project strengthens the country’s geostrategic position as a gateway for natural gas to the European market from diverse sources and mainly from TAP.

In addition, however, it uses the planned Alexandroupolis FSRU, as the quantities to be imported via it would have to be transported north via IGB.

The IGB is the first part of the so-called vertical corridor, which interconnects the national gas systems of Greece, Bulgaria, Romania and Hungary with the aim of alternately supplying the countries of South East Europe and ‘Central Europe.

Regarding the ratification of the founding treaty of the EastMed Gas Forum by the Greek Parliament, the Greek Ministry of Environment and Energy recalled that the main objective of the EMGF Regional Agency is to serve as a bridge that will unite producers gas, consumers and transit countries. , with the ultimate goal of developing a sustainable regional gas market in the Eastern Mediterranean.

At the first meeting of Energy Ministers of Jordan, Cyprus, Greece, Egypt, Palestine, Israel and Italy, held in Cairo on January 14, 2019, the ministers announced their intention to create a forum. The founding treaty of EMGF was signed in September 2020 by its seven members – Egypt, Greece, Cyprus, Israel, Italy, Jordan, Palestine – and has already been ratified by four of them.

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