ICGB, the operator of the gas interconnector between Greece and Bulgaria, has signed an agreement with Greek grid operator DESFA for gas flows at the Komotini interconnection point.
The interconnector, which allows gas from Azerbaijan and regasified LNG from terminals in Greece and Turkey to be shipped northward to Bulgaria and the wider southeast European region, began operating in October, 2022.
This new agreement will allow a secure, safe, reliable, and effective interoperability at the interconnection point once it begins commercial operation, ICGB said.
ICGB is co-owned by Bulgaria's BEH and a joint venture between Greece's DEPA and Italy's Edison.
The startup was due to commence in tandem with the 1st October commercial operations of the new FSRU Alexandroupolis LNG terminal in northern Greece.
"This is a key step in ensuring the pipeline facilitates the transportation of gas after the commercial launch of the LNG terminal in Alexandroupolis," ICGB's executive officers, Teodora Georgieva and George Satlas, said.
"The two infrastructures are in great synergy, and we expect that the commissioning of the FSRU could significantly increase market interest in existing and planned capacity," they said.
Successful test
The connection has already been successfully tested with gas to ensure its safe operations.
This will also allow interested parties with booked capacity at the FSRU to transport gas via the Greece/Bulgaria pipeline, thus establishing a new route for gas deliveries to Southeast and Central Europe.
A month or so ago, ICGB said it would continue with plans to expand the pipeline's capacity from the current 3 bill cu m per year to 5 bill cu m, despite a lack of market interest in booking additional capacity.
Following a successful non-binding market test for the expanded capacity in 2023, ICGB held a binding capacity process in July, with significantly different results.
"These results will not affect the company's drive to implement the interconnector capacity expansion project from 3 bill cu m per year to five bill cu m per year," an ICGB spokesperson said on 7th August. "We believe that this is of great national and international interest and the company remains fully committed to this task."
The pipeline shipped more than 1.5 bill cu m of gas in 2023.
Some 1.57 bill cu m per year of long-term capacity was booked under 25-year contracts, with spare capacity offered in regular auctions.
The reasons for the reduced interest are being analysed, ICGB said, however, the delay in the commercial operation of the FSRU LNG terminal was thought to be the leading factor.
Greece's GASTRADE - the operator of the Alexandroupolis terminal - expects the FSRU to begin operations at the start of October.
The 5.5 bill cu m per year FSRU - Greece's second LNG import facility - received a commissioning cargo in mid-February and had been expected to begin commercial operations at the end of April.
However, this date was pushed back a number of times, due to unexpected technical issues faced during the commissioning process.
