BAKU, Azerbaijan, March 18. Teodora Georgieva, an Executive Officer and Board Member of ICGB (the operating company of the IGB gas pipeline, an interconnector between Greece and Bulgaria), expressed her views on the European Commission's (EC) decision to withdraw support for gas pipeline expansion projects during discussions with European media, Trend reports.
Answering the question "What is missing from the European gas infrastructure in the short and medium term?" Georgieva brought up a few pertinent points.
"The expected halt of the transit agreement between Russia and Ukraine this year will have a significant impact on gas supplies to several countries, including Austria and Slovakia. This situation underscores an urgent need to enhance infrastructure connections in Europe.
In response to this challenge, the ongoing Vertical Corridor initiative emerges as a crucial solution. By involving operators from Ukraine and Moldova, the Vertical Corridor enhances its strategic importance, particularly for routes linking Greece to Ukraine and Austria.
However, within this context, the expansion of the IGB's capacity and infrastructure investments in Bulgaria and Romania in the short to medium term are deemed essential. These measures are critical for facilitating gas transportation to Ukraine and other nations. The objective is to increase total pumping volumes from 5 billion cubic meters per year to 10 billion cubic meters per year.
It is emphasized that the European Commission's intention to prioritize support and funding solely for hydrogen projects, while excluding strategic gas infrastructure, may hinder progress. Natural gas remains crucial as a transitional fuel, and there is a strong argument for exceptions to be made.
Efforts will be made to secure financing for the expansion of the Vertical Corridor and IGB from international financial institutions and US funds," Georgieva emphasized.
In 2023-24, Azerbaijan continued to express disappointment over the European Commission's lack of support for financing the expansion of the Southern Gas Corridor (SGC).
The IGB pipeline is intricately linked to the Trans Adriatic Pipeline (TAP), which constitutes the European section of the Southern Gas Corridor (SGC). Thanks to the IGB, the Shahdeniz consortium successfully met its obligations under the 25-year contract signed in 2013 with Bulgaria for the supply of gas from the Caspian Shahdeniz field, amounting to one billion cubic meters of gas annually.
Commercial shipments of Azerbaijani gas through IGB commenced in October 2022, with Bulgaria receiving the contracted volume since 2023. Meanwhile, ICGB is actively pursuing the expansion of IGB's capacity to 5 billion cubic meters per year. There are plans for TAP to potentially connect to the Vertical Corridor, which originates at Greece's liquefied natural gas terminal. The current participants in the Vertical Corridor gas route include Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine.