North Macedonia–Greece Interconnector Gas Pipeline

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North Macedonia–Greece Interconnector Gas Pipeline is a gas pipeline under construction in Greece and North Macedonia.

Location

The interconnector will run near the Nea Messimvria compressor station to the customs station of Evzoni in Greece, then to Gevgelija and Negotino in North Macedonia.

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Project Details

Nea-Messimvria-Evzoni/Gevgelija

• Operator: DESFA S.A.
• Owner: DESFA S.A.
• Parent Company: Government of Greece [34%]; Snam [36%]; Enagas [12%]; Copelouzos Group [6%]; Fluxys [12%]
• Capacity: 1.5 (bcm/y)
• Length: 55 km / 34.8 miles
• Diameter: 762mm
• Status: Contstruction
• Start Year: 2027
• Cost: €91 million
• Financing: €25 million loan from the European Investment Bank (EIB) for the Greek section of the Interconnector

Gevgelija-Negotino

• Operator: NOMAGAS Skopje
• Owner: NOMAGAS Skopje
• Parent Company: MER JSC Skopje
• Capacity: 1.5
• Length: 70 km / 43.5 miles
• Diameter: 750 mm / 29.5 inches
• Cost: €83.7 million
• Financing: €27 million loan from the EIB for the North Macedonian section
• Status: Construction
• Start Year: 2027

Background

The North Macedonia section of the project is referred to by ENTSOG as "Interconnection North Macedonia-Greece (North Macedonian part)" and by its project code: "TRA-A-980". ENTSOG describes this section of the project's purpose as to " ensure supply of additional quantities of natural gas from Greece and other sources that will be available through Greece, direct connection to the existing LNG Terminal Revithoussa and possibly transit of additional quantities of natural gas intended for UNMIK and/or Serbia." DESFA has requested approximately €17 million in grants from the European Union for the project's construction. As of late 2020, the funding decision was pending.

The Greek section of the project is is referred to by ENTSOG as "Nea-Messimvria to Evzoni/Gevgelija pipeline (IGNM)" and by its project code: TRA-A-967. ENTSOG describes this section of the project as "a pipeline from Nea-Messimvria to the GR/MK border allowing the supply of North Macedonia by the Greek Gas Transmission System."

Financing

In May 2020, the European Investment Bank approved a €25 million loan for financing the construction of the 55 kilometre long Greek section of the Interconnector. At the same time the EIB approved a €27 million loan for financing the construction of the North Macedonian section. The project has also received grants of €1 million from the EU's technical assistance fund CONNECTA and €12.425 million from the Western Balkan Investment Framework. The Western Balkans Investment Framework contributed a €12 million grant.

A "Benefit Analysis, Environmental and Social Impact Assessment and Basic (detailed) Design" document, dated February 2021, includes a "Time plan for the Project phases" which states that construction is expected to take place between 2021 and 2023. The latter year is also the stated start of operation.

As of September 2021, Energy Community states that the design studies for the North Macedonia (Negotino-Gevgelija) part of the pipeline are not yet complete. According to Energy Community, "mechanical completion [is] planned for May 2024" and commissioning is planned for that same year.

Delays

In March, 2023, the bidding process for the pipeline was opened, with a contract duration of 39 months. A commissioning date of 2025 was announced at that time. A memorandum of understanding was signed between the two countries in February, 2023.

The European Bank for Reconstruction and Development continued, as of February 2024, to consider financing for the project.

The project was given an initial start date of 2022 but has been delayed repeatedly. In 2024 it was delayed by 22 months according to estimates.

Construction Begins

The Greek section of the pipeline began construction in February 2025, the North Macedonian section began construction in July of that year. At the beginning of the construction phase the TSOs announced that commissioning would commence in early 2027.

Expansion Plans

Although the stated capacity of the pipeline is 1.5 bcm/y this is noted as the initial capacity with plans to potentially double this in the future.

Criticism and Stranded Assets

The pipeline has been described as controversial and necessary by some energy and climate analysts. The increased capacity will set North Macedonia on course to triple its fossil gas consumption compared to 2021, its highest year to date.

The EBRD came under pressure to refuse a loan request for the project on the grounds that the development contravenes EU and EBRD climate policies. Pippa Gallop of Bankwatch Network commented that the “EU and its banks must stop applying double standards. At home they understand the need to phase out gas, but they have no problem with helping the Western Balkans get addicted to this pricey imported fossil fuel – and pretending it has next to no emissions."