ICGB and the American company „Linden“ with a contract for the transmission of natural gas for a period of 20 years

ICGB и американската компания „Linden“ с договор за пренос на природен газ за 20-годишен период

By:
DIANA ZAYKOVA

In the binding interest market test to reserve capacity from the Greece-Bulgaria interconnector that took place in 2016, Linden Energy LLC signed a long-term capacity reservation agreement under the IGB. In early October 2022, in sync with the start of commercial operation of the interconnector, ICGB and Linden Energy LLC reaffirmed the reserved firm capacity in the Greece-Bulgaria direction for a period of 20 years.
On the photo, shooted several months earlier, from left: Ambassador Matthew Bryza, Ambassador Herro Mustafa, President of Linden Stephen Payne, Bulgaria Economy Minister Kiril Petkov, Bulgaria Energy Minister Andrei Zhivkov, Executive Director of Overgas Inc. Svetoslav Ivanov.

Photo: “Linden Energy”

The independent transmission operator ICGB, which operates the Greece-Bulgaria commercial interconnector, has entered into a natural gas transmission contract with the American company Linden Energy LLC. The agreement is for a period of 20 years.

Linden Energy LLC is a US-based company with strategic interests in the regional natural gas market. The company recently finalized an equity stake in one of Bulgaria's largest natural gas suppliers (“Overgas”) and announced plans to build a regasification facility in Albania.

In the binding interest market test to reserve capacity from the Greece-Bulgaria interconnector that took place in 2016, Linden Energy LLC signed a long-term capacity reservation agreement under the IGB. In early October 2022, in sync with the start of commercial operation of the interconnector, ICGB and Linden Energy LLC reaffirmed the reserved firm capacity in the Greece-Bulgaria direction for a period of 20 years.

The inclusion of one more trader with a signed pipeline gas transmission agreement has a positive effect on the IGB transmission tariff. This is also to the benefit of the end users in Bulgaria, since since October 1, nearly a third of the domestic consumption of natural gas in the country is ensured through supplies under the IGB.

The interconnector has a total capacity of 3 billion cubic meters per year, more than half of which is already reserved under long-term contracts of up to 25 years. The remaining free capacity is offered at auctions on two of the leading European platforms - PRISMA and RBP.

The IGB project (Greece-Bulgaria Intersystem Gas Connection) is implemented by the mixed investment company „ICGB“ ТЯЪ, registered in Bulgaria in 2011 with shareholders BEH JSC (50%) and IGI Poseidon (50%). The joint shareholder IGI Poseidon is a company registered in Greece, with shareholders the Greek company DEPA International Projects S.A. (50%) and the Italian energy group Edison S.p.A (50%).

In accordance with its charter, ICGB JSC is the owner of the IGB gas pipeline, financing its implementation, distributing its transmission capacity and receiving revenues from the transmission of natural gas.

The IGB gas pipeline is connected to the Greek national gas transmission system (DESFA S.A.) and the Trans-Adriatic gas pipeline (TAP AG) in the area of ​​Komotini (Greece), and to the Bulgarian gas transmission system (Bulgartransgaz EAD) in the area of ​​Stara Zagora. The total length of the gas pipeline is 182 km, the diameter of the pipe - 32'' - and a design capacity of up to 3 billion m3/year. in the direction of Greece-Bulgaria. Depending on the market interest in using a larger capacity and the possibilities of the neighboring gas transmission systems, the capacity is designed to increase to 5 billion m3/year. with additional construction of a compressor station.

Source: Diana Zaykova, 0885/074 422, 0885/614 131; Rositza Donkova, 0888/343 661