October 31 (SeeNews) - The gas transmission system operators of Bulgaria and North Macedonia signed an agreement to increase the capacity of the existing natural gas link in the direction of North Macedonia by 182 million cubic metres (mcm) per year, the Bulgarian energy ministry said on Monday.
The interconnection agreement between Bulgartransgaz and GA-MA will enable North Macedonia to diversify its sources of gas supply via the link between the two countries' gas grids at the Kyustendil - Zidilovo point, the energy ministry said in a press release.
North Macedonia's yearly consumption is about 300 mcm at present. The country does not have natural gas deposits and relies on imports from Russia transited through Bulgaria under a gas supply contract with Gazprom that will expire in 2030.
The interconnection agreement between the two companies will grant North Macedonia access to auctions on the Balkan Gas Hub, to natural gas deliveries from Azerbaijan which Bulgaria receives via its interconnection with Greece, as well as to liquefied natural gas (LNG) volumes from other potential suppliers via the existing Greek terminal at Revithoussa and the planned one at Alexandroupolis.
Bulgaria will also make capacity at its Chiren gas storage facility available to its neighbour under the agreement.
"This agreement is a real step towards the liberalisation of the gas market, which is key to providing cheaper natural gas for our customers," GA-MA executive director Alexander Arsic said.
The signing of the agreement follows a public consultation with stakeholders, which took place between October 18 and October 27.