BAKU, Azerbaijan, August 8. ICGB, the independent operator of the Greece-Bulgaria interconnector (IGB), has obtained a construction permit for Lot 1 of its planned capacity expansion project - from 3 to 5 billion cubic meters per year (bcm/y), Trend reports via the ICGB.
Issued by the Bulgarian Ministry of Regional Development and Public Works, the permit covers the upgrade of the gas metering station near the Bulgarian city of Stara Zagora.
This key step enables ICGB to move forward with the procedure for selecting an Engineering, Procurement and Construction (EPC) contractor. Once selected, the EPC contractor will be tasked with installing additional filtration and gas pre-heating equipment, as well as building pressure reduction and metering lines at the Stara Zagora gas metering station. The Lot 1 upgrade will allow the gas metering station to accommodate higher flows (up to 5 bcm/y) while maintaining full safety and operational compliance.
Alongside this progress, ICGB’s management is actively engaged in discussions with financial institutions regarding funding for the expansion. The company has also recently launched a new two-year cycle of the incremental capacity process to assess market interest in increased capacity. Non-binding offers are expected by September 2025, with binding commitments planned for summer 2026.
Once a sustainable financial plan is secured and ICGB’s shareholders have approved a Final Investment Decision for the expansion project, construction activities under Lot 1 can commence. In parallel with the preparation of the procedures for Lot 1, the documentation for Lot 2 (gas metering station near the Greek city of Komotini) is also moving forward to ensure that both sites progress in sync, in line with the overall strategy for contracting under the project.
“The permit marks real momentum in our consistent efforts to push forward the expansion project,” said ICGB’s Executive Officers Teodora Georgieva and George Satlas. “ICGB is committed to this project especially considering the infrastructure’s importance it holds for long-term regional energy security and integration in the SEE region.”
Expanding IGB is a key part of developing the Vertical Gas Corridor, enhancing access to diversified sources including LNG from Greek terminals and gas from Azerbaijan. Since its launch in Q4 2022, IGB has become a reliable natural gas route for Southeast Europe. This upgrade will solidify its strategic role even further, securing diversified deliveries for the Bulgarian market and other countries in the region including Ukraine thanks to IGB’s connectivity to the Trans-Balkan gas pipeline and the Trans-Adriatic pipeline.