BAKU, Azerbaijan, Aug.12
By Leman Zeynalova - Trend:
ICGB AD, a project company for construction of the Interconnector Greece-Bulgaria (IGB), has submitted a request for EUR 8.7 million under OPIC for the EPC works, the project company told Trend.
“The expected payment timeline is set for the beginning of September 2021. A separate audit in that regard is also underway,” said the company.
The deadline for construction of IGB is the end of 2021.
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.
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