Gas Interconnector Greece–Bulgaria (IGB)

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Gas Interconnector Greece - Bulgaria (IGB) is an operating pipeline linking gas from Azerbaijan to Bulgaria via Greece.[1][2] It is also known as the Stara Zagora-Komotini pipeline.

Location

The pipeline will begin in Stara Zagora, Bulgaria and will run to Komotini, Greece.[3] The proposal includes approximately 31 km of pipeline in Greece and 151 km through Bulgaria.[4] The exact proposed route of IGB can be found on page 74 of the Bulgartransgaz 2020-2029 development plan.[5][6]

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Project Details

  • Operator: IGI Poseidon (50%); Bulgarian Energy Holding (50%)[7]
  • Owner: IGI Poseidon (50%); Bulgarian Energy Holding (50%)[7]
  • Parents: Hellenic Petroleum Holdings S.A (8.75%); Italgas (17.5%), EDF (25%); Bulgarian Energy Holding (50%)[7]
  • Proposed capacity: 3 bcm/y[8]
    • Proposed capacity expansion: 5 bcm/y[8]
  • Diameter: 812 mm / 32 inches[9]
  • Length: 182 km / 114 miles[10]
  • Cost: €240 million (US$286 million)[11]
  • Financing: €84 million (US$97.42 million) in European Union grants[12]; €110 million (US$121 million) loan from the European Investment Bank[13]
  • Status: Operating[3][2]
  • Start Year: 2022[14][15]
  • Identifiers:
    • ENTSOG 2020 TYNDP Code: TRA-F-378[16]
    • PCI (3rd List): 6.8.1[16]
    • SciGrid IGG: INET_PL_10450, INET_PL_10451, INET_PL_10452 and INET_PL_10453.[6]

Background

The IGB pipeline has been under development since 2009, following a memorandum of understanding (MoU) signed between the governments of Greece and Bulgaria outlining the creation of a gas interconnection linking the two countries. The project is currently in the final stages of construction before beginning operation.[1]

Construction of the pipeline started in 2018 and was initially expected to be completed by 2020.[1]

The 182 kilometer pipeline will deliver gas from Azerbaijan via the Trans-Adriatic Gas Pipeline through Greece to Bulgaria and will maintain an initial capacity of 3 bcm per year, with potential to expand its capacity to 5 bcm per year. IGB pipeline will cost an estimated €160m ($170m), of which up to €45m ($48m) will be provided by the European Commission (EC) under the European Energy Program for Recovery.[1] IGB will also be able to supply Bulgaria with gas sourced from Greek ports which are importing liquefied natural gas (LNG).[17]

In July of 2019, the Greek Regulatory Authority for Energy (RAE) issued ICGB AD a license for an Independent Transmission System Operator (INGS). The license pertains to the Greek section of the IGB project and was issued for a period of fifty (50) years. It expires on June 27, 2069. It entitles ICGB AD to start the construction of the project, including the pipeline and auxiliary facilities and equipment on the territory of Greece. Obtaining this permit was the final step prior to construction.[18]

In September of 2019, Bulgarian Prime Minister Boyko Borissov announced that funding for the Bulgaria-Greece interconnector had been fully secured.[19]

70 of the 182 km of pipeline were reportedly placed as of May, 15 2020, according to a press release on the ICGB website. ICGB stated that "deadlines for the construction of the interconnector are not seriously affected despite the challenges that COVID-19 brings."[8] The project was still under construction as of July 17, 2020.[20] Bulgartransgaz stated in March 2020 that IGB was expected to run in operation by July 1, 2021.[5] However, in its Ten Year Network Development Plan (TYNDP), European Network of Transmission System Operators (ENTSOG) stated the project was delayed and commissioning end date is 2025 due to "appeals against the tender procedures."[21]

In January 2021 the Greek parliament formally ratified construction of the interconnector. Kostas Skrekas, Greece's environment and energy minister, told the parliament that the project is 52% built and is expected to be completed by the end of 2021.[22]

In March of 2021, Bulgartransgaz stated in its 2021-2030 network development plan that the project's "Expected commissioning date" was in 2021.[3] However, a May 2021 report from the Eastern Europe Natural Gas Partnership (EE-NGP) stated the project would be commissioned in 2025.[16]

On July 9, 2021, ICGB AD stated "the interconnector will be put into commercial operation no later than July 1st, 2022."[14]

In November 2021, Euractiv reported that the project was facing delays due to a shortage of construction materials from China, and that the Greek construction company AVAX would not be able to meet the announced deadline of the end of December 2021 to complete construction work. This would result in the deadline for putting the interconnector into operation on July 1, 2022 being missed. AVAX denied the reported problems.[23] It was reported that by the beginning of December 2021 the pipeline was only 70% constructed. Delays on the Greek side were said to be most marked, including missing pipes along the route, and a lack of testing and reclamation.[24]

In April 2022, a senior AVAX official said that construction of the pipeline had been completed in early April, work and testing at two metering stations and software installation were in the final stages.[17] Against a backdrop of the Russian invasion of Ukraine, final permits were fast-tracked and approved, with construction completed on the 1st of July, 2022.[25] The pipeline officially began operations in October, 2022.[26]

Technical Details

In order to create an expanded maximum capacity of 5bcm, the project will also necessitate maintaining 57barg pressure at Komotini and 52barg outlet pressure at Stara Zagora. A 10MW compressor station will also be required to be installed at Haskovo, Bulgaria. The project also includes the installation of infrastructure including nine block valve stations, SCADA / control and telecommunications facilities, and two terminal scraper stations. Two gas metering stations at Komotini and Stara Zagora, and two off-take and automated gas regulation stations in Kardjali and Dimitrovgrad will also be developed.[1]

Financing

The pipeline has been approved for inclusion on the European Commission's Projects of Common Interest list, meaning it can receive public funding from the EU. The project has received EU grants of €39 million from the European Regional Development Fund and €45 million from the European Energy Program for Recovery.[12]

According to the European Commission, "Construction of a bi-directional gas interconnector between the high pressure natural gas systems of Greece and Bulgaria with a technical capacity of up to 3 BCM/year, capable to be increased to up to 5 BCM/year with the installation of a Compressor Station (CS). New onshore pipeline with a length of 185 km and a daily capacity of approximately 13.7 MCM/day. compressor station at Kipoi will be needed to ensure the supply with gas of the IGB from the DESFA system. The power of the CS is of approximately 12 MW. The metering station at Komotini will enable the Gas Transmission System of Greece to supply gas into the IGB pipeline."[27]

In October 2019, the European Investment Bank (EIB) agreed to provide a €110 million loan for the pipeline's construction, estimated to cost €240 million overall.[13]

Ownership

The project is being developed by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greek IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.[28]

Protest by workers

In August 2020 dozens of workers on the pipeline staged a protest in Haskovo, Bulgaria, saying they had not been paid in three months.[29]

Articles and resources

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Gas Interconnector Greece-Bulgaria (IGB) Pipeline, Hydrocarbons Technology, accessed April, 2018
  2. ↑ 2.0 2.1 "Greece-Bulgaria pipeline starts operations to boost non-Russian gas flows". Reuters. Retrieved 2022-10-03.
  3. ↑ 3.0 3.1 3.2 BULGARTRANSGAZ EAD (March 2021). "2021-2030 TEN-YEAR NETWORK DEVELOPMENT PLAN OF BULGARTRANSGAZ EAD" (PDF). bulgartransgaz. Retrieved August 10, 2021.{{cite web}}: CS1 maint: url-status (link)
  4. ↑ "IGB". IGI Poseidon. 2016-02-02. Retrieved 2020-08-17.
  5. ↑ 5.0 5.1 Bulgartransgaz EAD (March 2020). "2020 - 2029 TEN-YEAR NETWORK DEVELOPMENT PLAN OF BULGARTRANSGAZ EAD" (PDF). bulgartransgaz.bg. Retrieved September 25, 2020.{{cite web}}: CS1 maint: url-status (link)
  6. ↑ 6.0 6.1 Diettrich, Pluta, Medrjoubi (July 23, 2020). "The combined IGG gas transmission network data set". DLR Institute for Networked Energy Systems. {{cite journal}}: Cite journal requires |journal= (help)CS1 maint: multiple names: authors list (link)
  7. ↑ 7.0 7.1 7.2 "ICGB AD Bulgaria". www.icgb.eu. Retrieved 2021-08-10.
  8. ↑ 8.0 8.1 8.2 "ICGB AD Bulgaria". www.icgb.eu. Retrieved 2020-08-17.
  9. ↑ "ICGB AD Bulgaria". www.icgb.eu. Retrieved 2021-08-10.
  10. ↑ "ICGB AD Bulgaria". www.icgb.eu. Retrieved 2020-08-17.
  11. ↑ EIB to Finance Bulgaria-Greece Gas Link, Pipeline & Gas Journal, Oct. 10, 2019
  12. ↑ 12.0 12.1 Greece-Bulgaria Natural Gas Interconnector (182KM), IJGlobal, accessed Nov. 25, 2020
  13. ↑ 13.0 13.1 EIB supports energy supply diversification in south-eastern Europe, European Investment Bank press release, Oct. 10, 2019
  14. ↑ 14.0 14.1 ICGB AD Bulgaria (July 7, 2021). "The interconnector with Greece successfully crossed the Maritsa River". www.icgb.eu. Archived from the original on 2021-08-10. Retrieved 2021-08-10.
  15. ↑ RFE/RL's Bulgarian Service (Oct 1, 2022). "New Pipeline Seen In Bulgaria As 'Freedom' From Russian Gas Imports". Radio Free Europe. Retrieved October 26, 2022.{{cite web}}: CS1 maint: url-status (link)
  16. ↑ 16.0 16.1 16.2 Eastern Europe Natural Gas Partnership (May 26, 2021). "Catalog of Potential Eastern European Natural Gas Investment Projects in Support of the Three Seas Initiative" (PDF). United States Energy Association. Archived (PDF) from the original on August 12, 2021. Retrieved September 7, 2021.
  17. ↑ 17.0 17.1 Derek Gatopaulos, New gas pipeline boosts Europe’s bid to ease Russian supply, Associated Press, Apr. 29, 2022
  18. ↑ Greece Has Granted a Gas Interconnector License to Bulgaria, Novinite.com, Jul. 22, 2018
  19. ↑ PM Boyko Borissov: We have fully secured the funding of the Bulgaria-Greece interconnector Focus News Agency, September 11, 2019
  20. ↑ "ICGB AD Bulgaria". www.icgb.eu. Retrieved 2020-08-17.
  21. ↑ European Network of Transmission System Operators for Gas (November 25, 2020). "TYNDP 2020 Annex A.2 – Project Tables". ENTSOG. Retrieved December 2, 2020.{{cite web}}: CS1 maint: url-status (link)
  22. ↑ Greece ratifies IGB pipeline deal, EastMed Gas Forum foundation treaty, Xinhua, Jan. 27, 2021
  23. ↑ Georgi Gotev, Sarantis Michalopoulos, "Greece-Bulgaria gas interconnector IGB faces delays due to supply shortages", Euractiv, Nov. 11, 2021
  24. ↑ Krassen Nikolov, "Bulgaria vents fury over Greek company building IGB pipeline", Euractiv, Jan. 7, 2022
  25. ↑ Nikolov, Krassen (2022-05-27). "Greece-Bulgaria gas interconnector operational from 1 July". www.euractiv.com. Retrieved 2022-06-23.
  26. ↑ Todorović, Igor (2022-07-11). "Greece, Bulgaria inaugurate IGB gas pipeline". Balkan Green Energy News. Retrieved 2022-07-12.
  27. ↑ Interconnection Greece – Bulgaria European Commission, November 2019
  28. ↑ ICGB Launces Pipe Supply Tender for Greece-Bulgaria Gas Link, SeeNews, accessed April, 2018
  29. ↑ Georgi Gotev, Strategic gas interconnector Greece-Bulgaria on bumpy road, Euractiv Bulgaria, Aug. 6, 2020

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