Bulgaria has taken one more step towards the completion of the IGB

Bulgaria has taken one more step towards the completion of the IGB

Bulgaria is proceeding with the disbursement of the funding needed to complete the IGB pipeline, which, according to a statement from the country’s government, has initiated the process of securing lending of 215m leva (ie 122 mln euros/110 mln euros) from the European Investment Bank (EIB).

The Greece-Bulgaria Interconnector – IGB pipeline is expected to act as the interconnecting “power” between Greece and Bulgaria for the transportation of natural gas.

The loan, as noted, will be repaid by the state-owned Bulgarian Energy Holding EAD (BEH EAD) within 25 years after the ratification of the agreement with the European Investment Bank (EIB).

The total investment is estimated at EUR 240 million.

It is recalled that in November 2018, the European Commission announced in a statement that the granting of a European Investment Bank (EIB) loan does not contravene and does not violate EU rules on State aid.

Ιt is noted that the pipeline is expected to transport 3 billion cubic meters of natural gas per year from Greece to Bulgaria, with the potential to reverse flow and increase capacity to 5 billion cubic meters of natural gas per year, provided there is market interest.

The connection points will be Komotini on the Greek side and Stara Zagora on the Bulgarian side, the length of the pipeline will be 182 km, while the project is managed by the ICGB consortium, which is composed by the companies BEH, DEPA and Edison./ibna