BAKU, Azerbaijan, May 1. The decline in demand for natural gas in Europe is temporary and can be explained by various global economic factors and prompt market reactions to geopolitical events, executive director of ICGB AD (operator of the Greece-Bulgaria gas interconnector - IGB) George Satlas told foreign media, Trend reports.
"Such tendencies are often cyclical and can change, especially as markets adjust to new energy realities and policies aimed at energy security and diversification," Satlas believes.
Meanwhile, the international energy agency recently suggested in its forecast for the second quarter of 2024 and the whole of this year that the EU's gas injection needs in the summer of 2024 could be 35 percent below the average of the last five years, due to the restructuring of Europe's economy, in particular, due to decarbonization processes and greater use of renewable energy sources (RES).
Satlas mentioned that gas is recognized by the EU as a "transition fuel" on the way to a zero-emissions economy.
"The planned expansion of IGB capacity from three billion cubic meters per year to five billion cubic meters per year in 2025 is justified, as evidenced by the results of the tender for non-binding bids from companies in the EU. We saw results indicating significant interest in booking the increased capacity at least for several consecutive years. This gives me reason for optimism. The next tender should take place in July this year, and once it is finalized, we will be able to determine the next steps," Satlas said.
He noted that, in parallel with the capacity expansion initiative, work is underway on the design of the IGB gas metering station in Stara Zagora to ensure that capacity at this interconnection point is increased in the fourth quarter of 2025.
"As a transmission system operator (TSO), ICGB is committed to providing continuous and quality natural gas transportation services and ensuring access to diversified sources," Satlas added.
Meanwhile, the first gas for the IGB to be commissioned in 2022 is gas from Azerbaijan's Shah Deniz field, as the IGB is linked to the Southern Gas Corridor and is considered part of it.
He also emphasized that the IGB is part of the new European project "Vertical Gas Corridor" (the corridor starts in Greece), which connects the gas transmission networks of Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine.
"The Vertical Corridor initiative is vital to ensuring reliable and diversified natural gas supplies to the Central and Eastern European region. Despite the intensive diversification efforts that Europe's energy sector has witnessed over the past two years, the region's transmission infrastructure still has some gas transportation constraints. "The Vertical Gas Corridor will overcome these so-called bottlenecks. It aims to provide increased natural and liquefied natural gas (LNG) supply capacity from a variety of new sources. This will also increase energy security at the national level in European countries and optimize gas prices," the executive director of ICGB AD believes.
According to him, the synergy of IGB with LNG terminals in the region, the Trans-Balkan pipeline, and the Southern Gas Corridor will increase the number of gas consumers in the EU.
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