Volume of funds spent on Interconnector Greece-Bulgaria disclosed

Oil&Gas Materials 13 October 2021 13:23 (UTC +04:00)
Volume of funds spent on Interconnector Greece-Bulgaria disclosed

BAKU, Azerbaijan, Oct.13

By Leman Zeynalova – Trend:

A total of 149 million euros have been spent on the Interconnector Greece-Bulgaria (IGB) so far, the ICGB AD, a project company, told Trend.

“Estimated expenditure by the end of 2021 is at 76 million euros. ICGB is forecasting utilization of the third tranche of the EIB funding by the end of 2021. So far, all independent audits and inspections - both at regional and international level - have resulted in positive feedback for the project and its management,” said the company.

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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