BAKU, Azerbaijan, Sept.9
By Leman Zeynalova – Trend:
The Trans Adriatic Pipeline (TAP), the final leg of the Southern Gas Corridor, which supplies Azerbaijani gas to Europe, phase I of the Bulgaria-Romania-Hungary-Austria (BRUA) pipeline corridor, and the LNG terminal on the island of Krk will improve gas supply security and competition in Europe, Trend reports with reference to the Council of the European Union.
“These are essential pieces of infrastructure, which will significantly improve the security and diversification of gas supply as well as interconnectivity and competition in the region. The timely and successful completion of these projects of common interest (PCI), with the support of the European Commission, is a testimony to the success of the Central and South Eastern Europe energy connectivity (CESEC) framework in helping identify, monitor and deliver regional priorities,” reads the Council’s statement.
The Council of the European Union welcomes the ongoing construction works on the interconnector Greece – Bulgaria (IGB) and notes that the implementation date has been pushed back to July 2022.
“The organization invites the project promoter and all parties concerned to step up efforts to ensure timely project implementation, facilitating access to new gas sources in Bulgaria and other parts of South-East Europe.”
Azerbaijani gas was for the first time delivered to Europe with the launch of the Southern Gas Corridor (SGC) in December 2020. With initial capacity of 10 billion cubic meters per year, TAP is projected to supply 8 billion cubic meters of gas to Italy and 1 billion cubic meters of gas to Greece and Bulgaria each. The pipeline is estimated to have delivered over 3 billion cubic meters of gas so far. The International Energy Agency (IEA) expects that TAP will reach 10 billion cubic meters of capacity per year in the next two years.
There are a number of projects envisaging connection to the Trans Adriatic Pipeline, with the Interconnector Greece-Bulgaria (IGB) being much closer to commissioning.
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.
Due to the ongoing construction of the Interconnector, the delivery point Komotini was not put into commercial operation as of the commencement date for supplies under the Agreement – 31.12.2020., and is expected to enter commercial operation in the middle of 2022. This required the execution of negotiations with the Azerbaijani supplier, which resulted in achieving an agreement for a temporary use of another delivery point on the territory of Greece and transportation of natural gas to Bulgaria through an alternative route for the period from 31.12.2020 to 30.09.2021.
Construction activities continue with a steady pace – over 165 km are welded, 110 km are lowered, trenching and backfilling are ongoing according to schedule. After the successful HDD crossing under the Maritsa river, field teams have initiated preparation for the process under Studen Kladenets Dam. The EPC contractor indicates that the completion of the linear infrastructure will be within the agreed deadline as per the signed contract.
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