ICGB, operator of the 3bn m³/yr Interconnector Greece-Bulgaria (IGB), plans to hold a market test for an expansion of the line to 5bn m³/yr in the second half of this year, chief executive Teodora Georgieva told Argus.
The war in Ukraine has led to "significant changes" to the energy sector in the region and throughout Europe, with countries like Bulgaria and its neighbours now "actively seeking diverse and reliable sources" of gas and LNG, Georgieva said. This situation "makes the option to increase IGB's capacity commercially logical at this stage", and ICGB is already in discussions on this with Greek transmission system operator Desfa and the operator of the Tap pipeline. The firm plans to start an incremental capacity process in the second half of this year, she said, adding that an expansion was always part of the project's vision, but "we didn't expect it to happen so soon after the commercial launch".
But ICGB "has not been identified as a beneficiary of EU funding for the expansion of the IGB pipeline, so we do not expect to receive any EU funds" for the expansion, Georgieva said. The cost of the expansion is yet to be determined, as a feasibility study would only be conducted following a successful completion of the market test.
The expansion requires the construction of a compressor station on the Greek side at Komotini, a project under construction by Desfa and planned to be completed in October 2024 at the earliest, according to Desfa's most recent 10-year development plan. The compressor station would also allow IGB to receive gas directly from the Greek grid, whereas currently the pipeline can only receive gas from Tap.
The launch of Greece's Alexandroupolis LNG terminal, planned for the start of next year, "will enable IGB to reach its full capacity", causing a "major shift" in Bulgaria's position on the region's energy map and enabling access to new markets and opportunities, Georgieva said.
An expansion beyond 5bn m³/yr is theoretically possible, but would likely require the construction of additional infrastructure, such as another pipeline and compressor station, although further studies could be done to assess whether existing infrastructure could accommodate higher flows, Georgieva said.
IGB is a crucial part of the "vertical corridor" project linking Greece, Bulgaria, Romania and Hungary, as well as the more-recent String initiative spearheaded by Bulgaria, which aims to facilitate additional Azeri flows to Europe.
