Final Investment Decision taken for the Gas Interconnector Greece-Bulgaria (IGB)
On 10 December 2015 the Shareholders in ICGB AD, respectively Bulgarian Energy Holding EAD with 50% and IGI Poseidon with 50%, concluded the procedure for taking the Final Investment Decision (FID) in relation to constructing the IGB Pipeline (Gas Interconnector Greece-Bulgaria).
The taking of the FID opens the last leg of developing the project before the start of the construction phase, which according to present schedule is planned to take place from the 4th quarter of 2016 until mid 2018 when commercial operation is aimed to be achieved.
The FID commits the shareholders to provide the capital required to complete the construction phase, once regulatory, permitting and exemption milestones will have been attained, as currently scheduled, within 2016.
„The Final Investment Decision is a key milestone in the development of the IGB Project. The process of negotiating the Final Investment Decision has lasted for an extended period of time during this year, since the interests of each of the shareholders and of the concerned countries have had to be balanced and protected. We believe that we have reached the necessary compromise formula of our relationship on the basis of which we should succeed in moving to the construction phase of the project“, stated Executive Officers of ICGB AD Teodora Georgieva and Konstantinos Karayannakos.
The taking of the FID evidences the firm commitment of ICGB shareholders for the completion of the IGB in the planned timeframe, in accordance with the EU and respective governments policy objectives.
IGB matches to the maximum extent the envisaged gas market evolution of Bulgaria and the South East European Region because it will enable the realization of existing and medium-term alternative gas supply opportunities such as sources in the Caspian Region, Middle East, East Med and LNG, which are planned to be integrated with the Southern Gas Corridor. IGB will be interconnected with the South East Europe neighboring gas markets via the Bulgarian Gas Transmission System.
“The status of the project in the regional and European context reflects its role of a strategic infrastructure which for the first time will give access to Bulgaria, the region of Southeastern Europe, as well as the region of Central Europe, to an alternative supply corridor from potential alternative sources. We will obtain a direct connection with the Southern Gas Corridor through Greece with supply opportunities from sources in the Caspian Region, Middle East, East Mediterranean as well as from traditional and new LNG producers relevant for Europe”, commented Teodora Georgieva, Executive Officer ICGB AD.
The strategic impact of IGB has been confirmed by the EU through the access to EU financial aid under the European Energy Programme for Recovery, through the designation of the project as an EU Project of Common Interest (PCI) and through its inclusion into the Central and South-East European Gas Connectivity (CESEC) High Level Group.
“During this year we have achieved together with our European partners enhancement of the priority status of the gas interconnector at EU level. The project continues to rely on the status of a Project of Common Interest within the EU. With the active role of the European Commission we have formed a new initiative for gas connectivity in Southeastern and Central Europe (CESEC), in which IGB is designated as a project prioritized for completion, in view of ensuring security of supply in the region and access to alternative gas supply sources”, added Konstantinos Karayannakos, Executive Officer ICGB AD.
For further information:
Tel. +359 2 926 38 62
Mobile: +359 886 539 909