Bulgaria set to double booked capacity at future LNG terminal in Greece

An agreement in principle was struck at a meeting held by the Bulgarian president with representatives of the two companies in charge of the terminal's construction - Gastrade and Copelouzos Group, the president's press office said in a statement on Monday.

"The terminal in Alexandroupolis is crucial not only for deepening the strategic partnership between Bulgaria and Greece, but also for ensuring the economic stability of the Balkans, in Central and Eastern Europe," Bulgarian president Rumen Radev said.

The planned LNG terminal must be linked as soon as possible to the Greece-Bulgaria gas interconnector which is scheduled for commissioning on October 1. This connection, as well as a link to Bulgaria's sole underground gas storage (UGS) at Chiren are important milestones in implementing the European Union's plan for energy security and independence, REPowerEU, according to the statement.

The Alexandroupolis floating LNG terminal, with a capacity of 5.5 bcm per year, is expected to become operational in the second part of 2023.

Bulgaria's current caretaker government is looking to plug a gap in the country's gas supply left after Russia's Gazprom cut off deliveries to Bulgaria in late April over the previous government's refusal to accept Moscow's demand to pay in rubles in a breach of the existing long-term supply contract expiring in December 2022. Earlier this month, the caretaker government subscribed for just one out of seven LNG tankers offered by US Cheniere Energy, citing the lack of free slots for offloading LNG tankers at Greece's existing Revithoussa terminal.