ICGB concludes the non-binding phase of the incremental capacity process with positive market indications for expansion of IGB’s technical capacity
The independent transmission system operator ICGB announces a successful completion of the non-binding phase of the incremental capacity process launched in July to assess the market interest in increasing the IGB pipeline’s total technical capacity. “The market interest for a few consecutive gas years is nearly two times higher than our initial expectations. While for now these indications are non-binding for the shippers, this is a great first step towards a potential expansion of the IGB pipeline’s capacity from 3 bcm/y to 5 bcm/y”, said ICGB Executive Officers George Satlas and Teodora Georgieva. The two discussed updates on the plans for the interconnector’s development with other TSOs in the region during an event dedicated to the Vertical Gas Corridor held in Thessaloniki, Greece.
Over 82% of the capacity of the IGB pipeline for the gas year 2023-2024 is already booked
Over 82% of the total technical capacity of the Greece-Bulgaria interconnector for the next gas year (2023-2024) has already been booked. The successful results were achieved by the independent transmission operator ICGB at the quarterly auctions held earlier, on August 7th. Currently, for the first quarter of the upcoming gas year, the gas pipeline has booked capacity of 76%. For the remaining 3 quarters, bookings exceed 84% of the facility's total technical capacity. ICGB continues offering the remaining free capacity in both daily and monthly auctions, ensuring transparent and equal access to all interested traders.
Over 12.7 million Mwh transported through the IGB pipeline since its commercial launch
For the first half of 2023, over 7.8 million Mwh are transported via the interconnector; 80% of the capacity for the next gas year is successfully booked. A total of 12.7 Mwh are the natural gas volumes transported through the IGB gas pipeline since the interconnector’s commercial launch on Oct 1st, 2022 up to the end of June 2023. IGB connects to the Trans Adriatic Pipeline (TAP), making Bulgaria part of the Southern Gas Corridor and enabling access to secure natural gas deliveries from diversified sources both for the country and the wider region.
ICGB completes the yearly auctions for the IGB pipeline under significant international interest
The independent transmission system operator ICGB finalized with success the yearly auctions for the available capacity of the IGB pipeline for the next gas year 2023-2024. Over 70% of the offered capacity was booked and the remaining quantity will be available in quarterly, monthly, and daily auctions.
ICGB launches incremental capacity process to assess market demand for increasing the technical capacity of the IGB gas pipeline
The process is split into two main phases and is conducted in alignment with adjacent transmission system operators. The independent transmission system operator ICGB, responsible for the management and commercial operations of the IGB gas pipeline, is initiating the mandatory process for assessing market demand for incremental capacity under Regulation (EU) 2017/459 (NC CAM). The process is split into two main phases – non-binding and binding phase and in general has a duration of two years. It will be implemented in close cooperation with adjacent transmission system operators (TSOs) Bulgartransgaz (Bulgaria), DESFA (Greece), and the Trans-Adriatic Pipeline (TAP). It will explore whether there are grounds to increase the existing technical capacity of the Greece-Bulgaria interconnector.
ICGB receives the final payment under OPIC for the construction of the interconnector Greece-Bulgaria
The independent transmission operator ICGB received approval for the final payment from the grant funding for the implementation of the Greece-Bulgaria interconnector, provided under the Operational Programme "Innovation and Competitiveness" (OPIC). The total funding allocated under OPIC amounts to €39 million. It is disbursed to the pipeline operator in tranches, following thorough inspections at each stage to ensure quality and successful completion of works. This creates an additional level of control and assurance that all implementation and project management activities are carried out in line with the highest industry standards.
Over 10.4 million Mwh have been transported through the IGB gas pipeline since its launch
Over 10.4 million Mwh have been transported through the Greece-Bulgaria gas interconnector since the launch of the pipeline on October 1, 2022. The amount equals to 892 million cubic meters and covers the period from the beginning of October to the end of April. As of the end of April, IGB has a total of 16 registered users.
Implementation of Article 14 of the Council Regulation (EU) 2022/2576 of 19 December 2022 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders
Based on Joint Decision of the Energy and Water Regulatory Commission of the Republic of Bulgaria (EWRC) and Regulatory Authority for Energy of the Republic of Greece (RAE) from March 2023 (hereinafter the Decision) on implementing Art. 14, paragraph 7, “a” of the Council Regulation (EU) 2022/2576 of 19 December 2022 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders (hereinafter the Regulation) the gas transmission system operator ICGB AD applies a firm day ahead use-it or lose-it (FDA UIOLI) mechanism at Interconnection Points in accordance with Commission Regulation (EU) 2017/459 of March 16, 2017, and in consideration of point 2.2.3 of Annex I of Regulation (EC) No. 715/2009.
Over 3 million megawatt hours were transported through IGB since the beginning of the year
3.08 million megawatt hours were transported through the Greece-Bulgaria gas interconnector for the period January 1 - February 28, 2023. Since the gas pipeline was put into commercial operation on October 1, 2022, a total of 7.9 million megawatt hours have been transported through it. As of the end of February, IGB has a total of 15 registered users.
ICGB reached an agreement with the Greece-Bulgaria gas pipeline EPC contractor avoiding future litigation issues
The Liquidated Damages due to the delay in the IGB construction have been recognized and will be deducted from indexation payments of part of the construction and installation activities of the project due to the rise in inflation.
Gas Interconnector Greece-Bulgaria is co-financed by the European Union's
European Energy Programme for Recovery programme.
The sole responsibility of this publication lies with the author.
The European Union is not responsible for any use that may be made of the information contained therein.