TODAY.AZ / Business

ICGB, Linden Energy ink natural gas transmission deal

21 October 2022 [17:44] - TODAY.AZ

By Azernews

By Ayya Lmahamad

The independent transmission operator ICGB, which operates commercially the Interconnector Greece-Bulgaria, and American company Linden Energy LLC have signed a natural gas transmission agreement for a period of 20 years, ICGB AD told Azernews.

"In the Market Test for binding interest in the capacity of the Greece-Bulgaria pipeline that took place in 2016, Linden Energy LLC signed a long-term capacity reservation agreement. Now, in sync with the start of commercial operation of the interconnector, ICGB and Linden Energy LLC reaffirmed the commitment for reserved firm capacity in the direction Greece-Bulgaria for a period of 20 years," the company stated.

The inclusion of another trader with a signed gas transportation agreement through IGB has a positive effect on the pipeline’s transmission tariff.

"This is also to the benefit of the end-users in Bulgaria since as of October 1st nearly a third of the domestic consumption of natural gas in the country is ensured with supplies delivered through IGB," the company stated.

Linden Energy LLC is a US-based company with strategic interests in the regional natural gas market. The company recently finalized an equity share in one of Bulgaria's largest natural gas suppliers and announced plans to build a regasification facility in Albania.

The IGB gas pipeline is designed to connect the Greek national gas transmission system (DESFA S.A.) and the Trans-Adriatic gas pipeline (TAP AG) in the area of Komotini (Greece), with the Bulgarian gas transmission system (Bulgartransgaz EAD) in the area of Stara Zagora. The total length of the gas pipeline is 182 km, and the diameter of the pipe is 32''.

The interconnector has a total capacity of 3 billion cubic meters per year, more than half of which is already reserved under long-term contracts of up to 25 years. The remaining free capacity is offered at auctions on two of the leading European platforms - PRISMA and RBP.

The pipeline is designed to increase its capacity up to 5 bcm/y depending on market interest and the capacities of neighboring gas transmission systems.

The opening ceremony of the Interconnector Greece-Bulgaria was held in Komotini on July 8, while a ceremony to inaugurate the (IGB) was held in Bulgaria on October 1.

URL: http://www.today.az/news/business/227145.html

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