IGB talks on agreements to be signed in next few months

By  Trend

The priority in the implementation of the project for construction of Interconnector Greece-Bulgaria (IGB) now is the finalization of the tenders for the main contracts – line pipe supply and the engineering, procurement and construction (EPC), Teodora Georgieva, executive officer at ICGB AD joint venture company, the project’s operator, told Trend.

"Also what is expected and shall be fulfilled in the next few months is approval, signing and ratification of the intergovernmental agreement focused on taxation issues for Greece and Bulgaria. On the basis of the exemption decision we have to move towards signing of gas transportation agreements with the shippers with reserved capacity. The interconnection agreements with the neighboring operators shall be completed," she said.

The executive officer noted that the respective contracts with the financial institutions shall be finalized including application for the grant financing of the 39 million euros.

The official notification procedure for compatible state aid is under preparation and will be undergone in the next few months, she added.

Georgieva pointed out that the most important work is the selection of the main contractors which is the practical condition for the start of construction and our efforts are focused mainly on this process.

"We believe that all conditions for the realization of the project are already on place and what is left is the formalization of some elements which are already agreed/approved/aligned among stakeholders," she said.

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.

The initial capacity of IGB will be 3 billion cubic meters of gas.