BAKU, Azerbaijan, Feb.19
By Leman Zeynalova - Trend:
Bulgaria can diversity its energy supplies and increase its energy independence by completing the Greece-Bulgaria natural gas interconnector project as per the updated plan, investing in the development of the Gas Terminal in Alexandroupolis and upgrading its gas network leveraging its geostrategic location for gas transit, Trend reports with reference to the American Chamber of Commerce in Bulgaria (AmCham Bulgaria).
Opportunities to import liquefied natural gas (LNG) from the United States to Bulgaria, Central and Eastern Europe, the diversification of nuclear fuel supplies and the decarbonization of Bulgaria's electricity system featured high on the agenda of a recent visit by a Bulgarian government delegation to the US, Bulgarian media reported citing AmCham.
AmCham Bulgaria reported that during the luncheon the visiting delegation discussed opportunities for collaboration with world-class US companies and the role that modern nuclear technologies and natural gas can play in Bulgaria's energy transition including through diversification of the nuclear fuel supply and LNG imports from the United States to Europe. LNG shipments from the US increased since late 2021 and early 2022, AmCham Bulgaria noted.
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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