Signing of the Agreement for the Greek-Bulgarian IGB Interconnector Pipeline on October 10, 2019

IGB Receives Independent Natural Gas System License (ASFA)
May 27, 2020
Placement of Managing Director Konstantinos Xifaras at the Delphi Economic Forum
June 27, 2020

By the signing of the final Agreements that delimit the framework of cooperation on October 10, 2019 in Sofia, in the presence of the Minister of Energy of the Republic of Bulgaria Ms. Temenuzhka Petkova and the Minister of Environment and Energy of the Hellenic Republic Mr. Kostis Hatzidakis, the beginning of Greece-Bulgaria Interconnector (IGB) is signified.

DEPA was represented by the Chairman of the Board of Directors Mr. Ioannis Papadopoulos, the Managing Director Mr. Konstantinos Xifaras, the Coordinating Director of International Activities, Trade, Portfolio and Gas Supply Dr. Konstantinos Karagiannakos, the Director of International Activities Mr. Dimitris Manolis and the Head of Compliance with Tender Law Mr. Thomas Amorgianiotis.

This is a project that creates new prospects for the gas market in the wider region of Southeastern Europe. The project, on the one hand, differentiates Bulgaria’s energy mix at competitive costs and, on the other hand, is a new field for the Greek gas market, demonstrating the strategic role it can play in the gas supply sector in the wider region of Southeastern Europe.

The IGB pipeline will connect the natural gas network of Greece with that of Bulgaria and other Balkan countries, as well as indirectly with the markets of Central and Eastern Europe (Hungary, Austria, and Ukraine).

The pipeline has a starting point in Komotini and ends in the city of Stara Zagora in Bulgaria, thus connecting the Greek gas system with the Bulgarian one. Also, the connection with the TAP pipeline is foreseen around the area of Komotini.

The responsibility for the development, construction and operation of the pipeline lies within the ICGB AD Company, whose shareholders are the Bulgarian Energy Holding – BEH Company, holding 50% and UNGS POSEIDON (IGI – POSEIDON), holding 50% as well. DEPA INTERNATIONAL WORKS and EDISON belong equally to UNGS POSEIDON (IGI – POSEIDON). Therefore, DEPA INTERNATIONAL WORKS is indirectly involved in ICGB AD by 25%.

The Project is included in the 3rd Projects of Common Interest list of the European Commission, based on the European Regulation 347/2013, while it is included in the list of priority projects of the Energy Interconnection initiative of its countries Central and South Eastern Europe (CESEC) since July 2015. Its co-financing by the EU has already been approved under EEPR program, with €45 million and through the Structural Funds financed by the Structural Funds (Bulgaria Competitiveness Operational Program) under €39 million.

The pipeline is designed to operate in two phases. During the first phase, with an estimated start date that of July 1, 2021, the capacity of the pipeline – Initial Capacity – will be 3.0 bcma 2.7 bcma of which will be offered for long-term products while 0.3 bcma for short term.

During the second phase and provided of additional commercial interest, the capacity of the pipeline can be extended to the Total Capacity of 5 bcma with the addition of a compressor, 4.5 bcma of which will be offered for long-term products while 0.5 bcma for short-term. A long-term product is considered to be the one that will bind the company for a period of more than five years, while the short-term commitments concern products lasting less than one year.

The CEO of DEPA INTERNATIONAL WORKS, Mr. Konstantinos Xifaras, stated: “The interconnection with Bulgaria is an important step that creates new perspectives regarding the energy security and adequacy of the wider region. Our vision is to make a decisive contribution to the expansion of investment horizons and the multiplication of business opportunities in the whole range of energy activities, inside and outside Greece, as it is essential to create conditions for the supply of the market safely, at competitive levels and over time”.