Operator: IGB expansion to provide Moldova, Ukraine, Hungary, Slovakia with Caspian gas

The Greece-Bulgaria (IGB) interconnector’s capacity expansion plans to reach five billion cubic metres per year (bcm/y) will be of great importance.

IGB interconnector’s capacity expansion plans to reach five billion cubic metres per year (bcm/y) will be of great importance to receive 10 bcm/y of LNG from the Greek terminals and Caspian gas through the Southern Gas Corridor to reach Moldova, Ukraine, Hungary and Slovakia, IGB operator company – ICGB told Report.

The gas transmission system operators of the Vertical Gas Corridor (Greece, Bulgaria, Romania, Hungary) welcomed Moldova and Ukraine in the initiative by signing a Memorandum of Understanding (MoU) during the ministerial meeting of the High-Level Energy Group for Central and South-Eastern Europe in Athens.

This MoU enshrines the intensive cooperation developed by gas and LNG transmission system operators from Greece, such as DESFA and Gastrade, Bulgaria (ICGB, Bulgartrangaz), Romania (Transgaz), Hungary (FGSZ) and Slovakia (EUStream) to respond to the need to strengthen energy security and further diversify sources of supply.

The collaboration on using the existing natural gas infrastructure will be strengthened as a result of the expansion of the coordination within the Vertical Gas Corridor by including the operators of Moldova (Vestmoldtransgaz) and Ukraine (GTSOU) upon ICGB’s initiative. As a result, 10 bcm/y of LNG may be obtained from the Greek terminals, Caspian gas, as well as the volumes from the Southern Gas Corridor via third countries by intensifying the IGB interconnector’s key role in the region.

"The IGB gas pipeline currently operates at three bcm/y, but given the region’s dynamics and market’s demand we are already working on expanding this capacity to reach five bcm/y. This will be of immense importance to import bigger quantities of LNG from the south via IGB and through the Trans-Balkan gas pipeline to Moldova, Ukraine, Hungary, and Slovakia," ICGB’s Executive Officers Teodora Georgieva and George Satlas said.

Georgieva and Satlas said that thanks to this strategic step the Vertical Gas Corridor becomes a more competitive corridor for European users, by strengthening Europe’s energy independence and diversifying supplies.

As for the next steps, all transmission system operators agree to carry out simultaneously, in July 2024, one year earlier than the foreseen schedule, a binding market test for capacity allocation at their respective interconnection points. Proceeding from the market interest, capacity expansion projects will be implemented to meet the demand along the Vertical Corridor route.