TODAY.AZ / Business

Greece grants IGB Installation Permit

13 February 2019 [16:37] - TODAY.AZ

By Azernews


By Leman Mammadova

The Greek Minister of Environment and Energy Giorgos Stathakis granted the Interconnector Greece-Bulgaria (IGB Project) Installation Permit on the territory of the Hellenic Republic, ICGB AD (project company) told Trend.

The decision was made on February 7, said the company.

“ThIs key permit is an important milestone, following the already issued Installation Act for the territory of the Hellenic Republic and the corresponding construction permit that was issued in Bulgaria in September 2017. This decision, together with the acquisition of the main land plots in the area of Komotini, is a precondition for the successful start of the IGB’s construction on the territory of the Hellenic Republic,” said ICGB AD.

The Independent Natural Gas System license (INGS license), which is expected to be issued by the Greek Regulator RAE in the second quarter of 2019, constitutes the last permitting step before the start of construction works, the company said.

The IGB project was supported by Greece and Bulgaria governments within Memorandum of Understanding signed in 2009. 

The 185 kilometer interconnector is designed to transport 3 billion bcm per year of natural gas from Greece (Komotini) to Bulgaria (Stara Zagora) by 2021. Later, the capacity may reach 5 bcm per year.

Bulgaria through Bulgargaz EAD company has already concluded a contract with the Azerbaijani state-owned company SOCAR for the delivery of 1 billion cubic meters per year from the second phase of Shah Deniz gas field.

The development of this interconnector will allow the delivery of Azerbaijani gas to Bulgaria, which will contribute to 40 percent of Bulgaria's gas demand.

The total investment cost for the realization of the IGB interconnector amounts to 240 million euros. The European Union attaches great importance to this project and has allocated 46 million euros for its funding. The project will be financed through the European Energy Programme for Recovery (EEPR), which is centrally managed by the European Commission, in the amount of 45 million euros. The European Investment Bank (EIB) will also provide a loan of 110 million euros to BEH (and subsequently passed-on to ICGB AD). As many as 39 million euros come as a direct financial contribution from the Bulgarian State budget via the Bulgarian Operational Programme "Innovation and Competitiveness" 2014-2020 (OPIC).

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, to create an alternative source to Russian gas flowing to Bulgaria.

TAP in turn is a part of the Southern Gas Corridor which provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

TAP shareholders include BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagas (16 percent) and Axpo (5 percent).

URL: http://www.today.az/news/business/179150.html

Print version

Views: 830

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: