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Bulgaria asks Azerbaijan to extend timeframe for gas supplies via alternative route

Oil&Gas Materials 29 November 2021 12:57 (UTC +04:00)
Bulgaria asks Azerbaijan to extend timeframe for gas supplies via alternative route

BAKU, Azerbaijan, Nov.29

By Leman Zeynalova – Trend:

Bulgaria asks Azerbaijan to extend timeframe for gas supplies via alternative route until July 2022, said Azerbaijan’s ambassador to Bulgaria Huseyn Huseynov, Trend reports.

“Due to the delay in the construction of the Interconnector Greece-Bulgaria (IGB), Bulgargaz addressed the Azerbaijani side with a request for delivery of the agreed gas on the alternative route Siderokastro – Kulata from December 31 last year to the autumn of this year. commissioning of the Greece-Bulgaria interconnector was postponed for next year, Bulgargaz had to request an extension of the agreed agreement until July 1, 2022. In this regard, we hope that the construction of the IGB will be completed as soon as possible. soon it will work at its full capacity,” he told Bulgarian media.

The envoy pointed out that the timely completion of the construction of the interconnector and its immediate commissioning is in the direct interest of Bulgaria.

“We believe that our Bulgarian partners together with their Greek counterparts will be able to perform all necessary activities on time and without further delay,” added Huseynov.

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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