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N. Macedonia talks on financing project to connect to Southern Gas Corridor

Oil&Gas Materials 24 February 2021 12:48
N. Macedonia talks on financing project to connect to Southern Gas Corridor

BAKU, Azerbaijan, Feb.24

By Leman Zeynalova – Trend:

The European Investment Bank (EIB) is due to make decision on North Macedonia’s project to connect to the Southern Gas Corridor, Minister of Economy of North Macedonia, Kreshnik Bekteshi told Trend.

The minister pointed out that the following activities have been undertaken so far:

- Signing of the Memorandum of Understanding, October 2016 (Annex to the Memorandum, April 2019);

- Environmental Impact Assessment Study has been prepared and all procedures related to it have been completed;

- The basic project is in the final phase. In the first quarter of 2021, we expect the revision of the same to be completed, which will be followed by the submission of a request for obtaining a construction permit;

- Regarding the financing of the construction, we expect the European Investment Bank to make a final decision on financing the project in March 2021, followed by the procedure to obtain loan. Part (20 percent) of the construction of the project will be financed with funds for co-financing of infrastructure projects approved through the IPA instrument Investment Framework of the Western Balkans;

- During 2021, the tender documentation for Construction, Construction Supervision, Inspection Body and Management will be prepared in accordance with the EIB rules. It is planned that the contractors of the construction will be selected by the end of 2021.

The Southern Gas Corridor, which is comprised of Shah Deniz 2, the South Caucasus Pipeline Expansion, the Trans Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP) became fully operational on December 31, 2020.

Trans Adriatic Pipeline (TAP) AG confirmed on Dec. 31 the commencement of gas flows from Azerbaijan. The first gas has reached Greece and Bulgaria, via the Nea Mesimvria interconnection point with DESFA, as well as Italy, via the Melendugno interconnection point with SNAM Rete Gas (SRG).

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

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Follow the author on Twitter: @Lyaman_Zeyn

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