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Greek LNG terminal to help boost gas supplies via IGB

Oil&Gas Materials 20 July 2023 17:47 (UTC +04:00)
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, July 20. The Alexandroupolis floating terminal for liquefied natural gas (LNG) will help to increase the volume of gas supplies via the Interconnector Greece-Bulgaria (IGB), said George Satlas, executive officer and board member of ICGB AD, the pipeline operator, Trend reports.

He pointed out that the LNG received at the terminal can undergo regasification and be transported via the IGB, offering an extra supply of natural gas to Bulgaria and potentially benefiting other countries linked to the interconnector.

“The integration of the Alexandroupolis Floating Storage and Regasification Unit (FSRU) and the IGB pipeline serves to reinforce the energy infrastructure in the region and fosters enhanced market connectivity. This collaboration facilitates the transportation of LNG through the IGB, establishing a vital link between global LNG markets and the Southeast European gas market. Consequently, this connectivity encourages regional energy cooperation, expands supply options, and supports the integration of gas markets in the area,” noted Satlas.

He went on to add that the presence of the FSRU terminal in Alexandroupolis not only diversifies gas sources but also allows Greece to import LNG from various global suppliers.

“This availability of LNG from different sources further bolsters the diversification of gas supplies for both Greece and the wider region, aligning perfectly with the objectives of the IGB. The proximity and synergy between these two projects present a remarkable opportunity for mutually beneficial outcomes,” he told Greek state news agency, adding that while specific plans for synergy with other LNG terminals in the region would depend on commercial agreements, market developments, and stakeholder collaboration, the overall goal is to optimize gas flows, stimulate regional gas trading, and create a more interconnected and integrated gas market in Southeast Europe.

“Ongoing cooperation and coordination among relevant stakeholders, including infrastructure operators, market participants, and regulatory authorities, will be pivotal in fully realizing the vast potential of these synergies,” Satlas added.

IGB started commercial deliveries on October 1, 2022.

While the annual supply of 1 billion cubic meters under the contract with Azerbaijan is the foundation of the project, the IGB has long-term capacities reserved by other shippers. Most of them are entirely new to the Bulgarian market. The interconnector will gain access to multiple gas sources in 2024.

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