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Bulgaria, Greece to sign final investment decision on IGB

Oil&Gas Materials 26 May 2015 20:42 (UTC +04:00)
It is planned to sign an agreement on the final investment decision to construct IGB (Interconnector Greece-Bulgaria) pipeline on June 12.
Bulgaria, Greece to sign final investment decision on IGB

Baku, Azerbaijan, May 26
By Maksim Tsurkov - Trend:

It is planned to sign an agreement on the final investment decision to construct IGB (Interconnector Greece-Bulgaria) pipeline on June 12, Bulgarian media reported May 26 citing Bulgarian Energy Minister Temenuzhka Petkova.

"Possibly, the agreement will be signed on June 12," she said. "Construction of the pipeline with the length of 182 kilometers, of which 130 kilometers will run through Bulgaria's territory, should start till March 2016 and completed in 2018."

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced within the Stage 2 of development of Azerbaijan's Shah Deniz gas and condensate field.

It is expected that IGB will be connected to the Trans-Adriatic pipeline via which the gas from Shah Deniz will be delivered to European markets.

In January 2014, a Memorandum of Understanding and Cooperation was signed between TAP and ICGB - the company in charge of the development, financing and construction the IGB. The memorandum aimed at establishing the technical cooperation in order to further develop strategic infrastructure in the region.

The document provides an opportunity for cooperation between the two companies that will work together on the possibility of connecting the pipelines in the vicinity of Komotini (Greece), which will open the way for new supplies of gas to the gas distribution network in Bulgaria, and further to the South-Eastern Europe.

TAP project is designed to transport gas from the Caspian Sea region to Italy's south through Greece, Albania and the Adriatic Sea and further to West Europe. The total length of the pipeline will near 870 kilometers.

The initial capacity of TAP will be 10 billion cubic meters of gas per year with the possibility of increasing to 20 billon cubic meters per year.

It is planned to start the pipeline's construction May 16, 2016.

TAP shareholders are: BP - 20 percent, State Oil Company of Azerbaijan (SOCAR) - 20 percent, Statoil - 20 percent, Fluxys - 19 percent, Enagas - 16 percent, Axpo - five percent.

Edited by CN
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Follow the author on Twitter: @MaksimTsurkov

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