When will Interconnector Greece-Bulgaria reach full capacity?

Gas Materials 28 May 2021 10:56
Baku, Azerbaijan Trend News Agency Leman Zeynalova
When will Interconnector Greece-Bulgaria reach full capacity?

The Interconnector Greece-Bulgaria (IGB), which will transport gas from Azerbaijan’s Shah Deniz-2 to Bulgaria, will reach its full capacity in 2023, Trend reports with reference to ICGB AD, a project company.

“The project can attract natural gas traders from the United States, Israel, Qatar and other countries. The full potential of the project to reach the maximum possible capacity will be reached when the LNG terminal near Alexandroupolis is ready in 2023 and will be further stimulated by the LNG terminals in Turkey.

The ICGB team and the contractors of the main project activities are actively working on the completion of the interconnector in a timely manner and under conditions that meet the highest international quality requirements,” said the company.

The IGB project enables the transmission of gas and supplies from new sources, making it key to Bulgaria's energy security and part of the national plan for diversification of gas sources. The capacity of the project is 3 billion cubic meters with the option to reach 5 billion cubic meters. Half of the capacity of the interconnector is already reserved, as four of the shippers are completely new to the Bulgarian market. A contract has been signed for the supply of 1 billion cubic meters from Shah Deniz 2 based on a long-term contract with Bulgargaz.

The conclusion of the contract for construction of the interconnector dates back from the end of 2019, as one of the main commitments of the project company in structuring IGB is the obligation to control costs within the approved budget, which will ensure competitive transmission for customers. The delay in construction activities and the approved update of the construction schedule for the end of 2021 are due to objective reasons related to the global coronavirus pandemic and do not lead to direct losses. The established alternative route through the Greek system and Siderokastro provides a temporary solution for servicing the contract with Azerbaijan until IGB is put into commercial operation.