IGB Pipeline - IGI Poseidon

Project description

A game changer for Europe's energy security

The Interconnector Greece-Bulgaria is a bi-directional gas pipeline that connects the transmission systems of both countries, as well as TAP. The implementation of the IGB project aims to ensure diversification not only of the routes but also of the natural gas sources for Bulgaria and the wider region. As part of the development of the Southern Gas Corridor, through IGB, Bulgaria and its neighboring countries will have access to alternative supplies from the Caspian region as well as from existing or planned LNG terminals. IGB is set to create new market opportunities and will enhance international partnerships in the region.

The project is a game-changer for the Bulgarian energy market with its ability to increase the competition and decrease the prices for consumers while securing diversified gas deliveries. IGB is being developed in great synergy with the LNG terminal near the Greek city of Alexandroupolis, which is set for completion by the end of 2023. With the terminal’s implementation, IGB’s capacity may see a significant boost of up to 5 bcm/y, which will further ensure the independent energy deliveries in the region.

ICGB is a part of the Memorandum of Understanding on the implementation of the Vertical Gas Corridor. The adopted document aims at cooperation between the companies regarding the realization of the Vertical Gas Corridor, which will connect the networks of Bulgaria, Greece, Romania, and Hungary and will allow natural gas transportation.

The route

Komotini, Greece – Stara Zagora, Bulgaria

182 km

Total Length

3-5 Bcm/y

Capacity

Status of development

The gas Interconnector Greece-Bulgaria started commercial operation on October 1st, 2022.

Institutional support

The gas Interconnector Greece – Bulgaria is recognized as a leading project for the CESEC initiative and has excellent synergy with other major projects like TAP and TANAP.

The Regulatory Authorities of Greece and Bulgaria, with the approval of the European Commission, granted the IGB an Exemption from Third Party Access rules (TPA Exemption) and other provisions of the Third energy package.

The construction of the gas Interconnector between Bulgaria and Greece is worth a total of €240 million:

€45 million are provided under the European Energy Program for Recovery (EEPR)
€39 million are allocated under the Operational Program "Innovation and Competitiveness" (OPIC 2014-2020)
€109.9 million are provided in the form of a loan from the European Investment Bank (EIB)
and the remaining funds are secured by the project’s shareholders - BEH and IGI Poseidon