(MENAFN- Trend News Agency) BAKU, Azerbaijan, Feb.6. The Interconnector
Greece-Bulgaria (IGB) has immensely changed South-East Europe's
energy map, Executive Officer of ICGB, the pipeline operator,
Teodora Georgieva said in an exclusive interview with trend .
“This goes into two aspects – impact on a national level for the
two host countries Greece and Bulgaria, and international
concerning our neighbors and the wider SEE region. On a national
scale, both Bulgaria and Greece were able to strengthen their roles
on the energy map after IGB's successful launch in October last
year. For Bulgaria, the benefits of IGB have been felt perhaps even
stronger internally, as the country now has a diversified and safe
new route for natural gas supplies – for the first time we are not
dependent on one sole source. This is a major feat and the ICGB
team has worked extremely hard to make it possible under quite
challenging conditions. The new route for gas deliveries has had a
positive impact on the market, optimizing prices for end consumers,
and making it possible to proceed with the gasification of entire
local regions,” she said.
Georgieva noted that on an international level, it is now
possible to offer capacity for natural gas transportation to
several countries in the SEE region, including the neighbors in the
Western Balkans.
“This is certainly a breath of fresh air for the market at a
time when energy independence and security of supply have become so
crucial. The timing of IGB's launch could not have been better in
that aspect and I am certain that the effects of this project and
its strategic location so close to TAP, TANAP, the Trans-Balkan
Pipeline, and a few LNG terminals will be felt even stronger in the
future,” she added.
Booked capacity
She noted that the current capacity of the Interconnector
Greece-Bulgaria is 3 bcm/y and as of right now it is booked at
almost 94 percent.
Georgieva believes that for a pipeline that's launched in just
under 6 months, this is a tremendous success.
“The IGB project was initially believed to be a highly relevant
infrastructure both for the two host countries and the wider region
all the way back in 2009 when the idea for it was established.
Personally, I have always believed in it as a dear cause of mine
with a great international impact. Now, given the new realities in
Europe, we can all feel with certainty that this pipeline is truly
a game-changer – it has helped Bulgaria diversify its internal
consumption of natural gas, breaking the cycle of dependence on one
main supplier, and it has strengthened Greece's position on the
energy map as well. That being said, through IGB we're already
seeing other countries benefiting as well, and we're working on
partnerships with local companies to provide gasification to
national regions that used to not have this option. I must say that
after years of hard work and extraordinary challenges, IGB's launch
with 3 bcm/y was an absolute success,” added Georgieva.
Sources of gas
The executive director said that currently, the main source of
supplies for the Interconnector Greece-Bulgaria is gas flowing
through the Trans-Adriatic Pipeline (TAP).
“Our project is also in synergy with planned and existing LNG
terminals in the region,” she explained.
Georgieva noted that as of October 1st, 2022, IGB is
transporting the full volumes of Azerbaijani gas contracted between
Bulgaria and Azerbaijan from the Shah Deniz II gas field.
“About half of the 3 bcm/y capacity of the pipeline – 1.57 bcm/y
is booked under long-term contracts for up to 25 years. The rest in
terms of free capacity is offered on the PRISMA and RBP platforms,”
she explained.
Forecasts for capacity utilization
Georgieva noted that the capacity utilization of the
Interconnector Greece-Bulgaria is expected to remain above 90
percent in 2023 and 2024.
“In 2023, ICGB, as a reliable transmission operator, will
fulfill the already undertaken commitments to transfer gas
quantities under the already signed long-term contracts,” she
said.
Georgieva noted that the market of natural gas in the region and
Europe as a whole is very dynamic right now, given the ongoing war
in Ukraine as well as the measures that European countries are
taking to overcome its consequences.
“As a result of these circumstances, in the third month since
the start of commercial operation of IGB, the capacity of the gas
pipeline was utilized above 90 percent. We expect that this trend
will persist and continue in 2023 and possibly in 2024, but
ultimately this will be determined by the needs and demand for
natural gas of the countries in the region,” said the executive
officer.
Progress in finishing work
The EPC contractor is still implementing some of the remaining
activities that don't have direct impact on the exploitation of the
Interconnector Greece-Bulgaria, Teodora Georgieva said.
“These so-called secondary activities do not interfere with the
smooth functioning and safety of the gas pipeline,” she noted
Georgieva went on to add that they are still, however, a part of
the contract and we as a contracting entity require them to be
fulfilled within the scope of the technical project.
“We're supervising closely the activities and mark significant
progress on some of them, while work on others remains rather
hesitant in pace,” she explained.
Expanding the geography of supplies
She pointed out that the interconnector Greece-Bulgaria can
provide a safe route for gas supplies to different countries.
“IGB's free capacity is available on two European platforms and
is open to all interested shippers that comply with the relevant
regulations. Through existing infrastructure including the
Trans-Balkan Pipeline, IGB can provide a safe route for diversified
gas supplies for countries in the region such as Moldova and
Ukraine as well,' she said.
Georgieva noted that whether this would be used as a viable
option for gas supply is not up to ICGB as a transmission system
operator.
Hydrogen transmission potential
ICGB is already researching the potential for hydrogen
transmission and the topics related, Teodora Georgieva said.
“We believe the obvious technical constraints will be resolved
in the foreseeable future, at least to a certain level sufficient
enough for transportation of blended gases,” the executive officer
explained.
Apart, Georgieva noted that the real prospects for hydrogen
pumping depend on the market of this commodity.
“Our transmission service is just a small piece of a very larger
puzzle called hydrogen economy. It must also be noted that for IGB
to start pumping hydrogen, there needs to be synergy with at least
several consecutive infrastructure operators in that aspect.
Adjacent operators should also be ready for hydrogen transportation
to/from a certain destination to enable the actual process. We have
recognized this as a future opportunity, and I am certain we will
be ready to fit in once the hydrogen market starts to develop more
noticeably,” she said.
Follow the author on Twitter: @lyaman_zeyn