BAKU, Azerbaijan, Nov.24
By Leman Zeynalova – Trend:
The ICGB AD, the project company for construction of the Interconnector Greece-Bulgaria (IGB) managed to successfully complete all 4 social and environmental audits under the strict European Investment Bank (EIB) procedures, and the 5th audit is planned for Q1 of 2022, the ICGB AD told Trend.
“ICGB is also moving forward with all the documentation needed to certify the project company as an independent gas transmission operator. Moreover, the company is in the process of coordination for the Interconnection Agreements with the adjacent TSOs - DESFA, TAP and Bulgartransgaz, with their finalization being forthcoming,” said the project company.
In November, ICGB initiates the process for requesting a 3rd financial tranche under the EIB loan for a total of EUR 29.9 million.
The timeline for commercial operation remains as approved by the national energy regulators - July 2022, the company said.
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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