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Bulgaria receives 1/3 of agreed gas volumes from Azerbaijan

Oil&Gas Materials 29 November 2021 12:48 (UTC +04:00)
Bulgaria receives 1/3 of agreed gas volumes from Azerbaijan

BAKU, Azerbaijan, Nov.29

By Leman Zeynalova – Trend:

Bulgaria receives only one third of the agreed 1 billion cubic meters of gas per year from Azerbaijan due to the delays in construction of the Interconnector Greece-Bulgaria (IGB), said Azerbaijan’s ambassador to Bulgaria Huseyn Huseynov, Trend reports.

“The agreement that was concluded between Bulgaria and Azerbaijan in 2013 for the supply of 1 billion cubic meters of gas to Bulgaria for a period of 25 years. According to this agreement, on December 31, 2020, the gas from Azerbaijan started flowing to Bulgaria, and the gas flow had to pass through the Greece-Bulgaria (IGB) interconnector from Komotini to Stara Zagora,” the envoy told Bulgarian media.

He pointed out that due to the delay in the construction of the interconnector, Azerbaijani gas is supplied by an alternative route – from Siderokastro (Greece) to Kulata (Bulgaria).

“Due to the technical aspects of this alternative route, Azerbaijan cannot supply the entire amount of gas, but only a third of it. This is the reason for the smaller amount of Azerbaijani gas that Bulgaria currently imports. Azerbaijan will fulfill its commitment to deliver the agreed 1 billion cubic meters of gas and I want to assure you that as soon as the Greece-Bulgaria interconnector comes into operation, Bulgaria will start receiving the full volume of Azerbaijani gas under the 2013 agreement,” Huseynov explained.

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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