Greece-Bulgaria: Key agreements inked on IGB project

Key agreements have been signed on the Interconnector Greece-Bulgaria (IGB) project, envisioning transportation of Azerbaijani gas to Europe, ICGB company, project operator, told Trend.

The documents were signed during the High Level Group Meeting on the Central and South Eastern Europe Connectivity (CESEC) on June 29 in Sofia, Bulgaria.

The following documents have been signed on IGB:

Position on the Intergovernmental Agreement – Term-sheet which will be the basis for further negotiation and signing of IGA for settling the tax regime between both countries;

Cooperation agreement between IGB and TAP for connectivity of the two gas pipelines;

Memorandum of Understanding for securing preferential loan financing in connection with using the state guarantee of Bulgaria;

Joint declaration between the shareholders in the project company for confirming a commitment for development and approval of a final business plan and an irreversible commitment of the shareholders for readiness to start construction;

Cooperation agreement for interconnection between ICGB and DESFA

“The construction of Greece-Bulgaria interconnector is among the most important priorities of the Bulgarian and the Greek government in the energy sector. The project has a key role for diversification of the sources and routes for natural gas supply not only for our country but also for the whole region of South-East Europe”, announced ICGB’s Executive Director on Bulgarian side Teodora Georgieva.

She announced that the project company will be included as an eligible beneficiary for financing under the European Structural and Investment Funds (ESIF) for Bulgaria under Innovations and Competitiveness Operational Program.

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan’s Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.

The initial capacity of IGB will be 3 billion cubic meters of gas.

Source: AzerNews

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