Bulgartransgaz signs 248 mln euro deals for Vertical Corridor expansion

In 2016, Greece, Bulgaria, Romania, and Hungary agreed to develop the required infrastructure for the so-called Vertical Gas Corridor, enabling bidirectional gas transmission among the participating countries. Ukraine, Moldova and Slovakia joined the initiative earlier this year.

The signed deals are related to the construction of looping from Kulata to Kresna and from Rupcha to Vetrino, the government said in a press release.

The contracts mark the beginning of efforts to boost gas transmission capacities between Greece and Bulgaria and between Bulgaria and Romania. Upon completion, Bulgaria's gas transmission infrastructure will be able to supply additional quantities of liquefied natural gas (LNG) from sources like the U.S., Azerbaijan and Egypt.

"The initiative of the gas transmission operators of Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova will guarantee energy security through diversified supplies in the long term," prime minister Dimitar Glavchev said.

Glavchev noted that after the planned end of Russian gas transit through Ukraine in early 2025, the Vertical Gas Corridor will establish itself as an infrastructure of leading importance for the region.

Last month, Bulgartransgaz concluded a tender for the Vertical Gas Corridor expansion, envisaging spatial planning, investment design, material and equipment delivery, along with construction and commissioning of new sites for infrastructure expansion at the Kulata-Sidirokastro and Negru Voda-Kardam interconnection points. The Hill International-GBS consortia were awarded two of the three lots, while the DZZD Negru Voda Kardam 2024 consortium, comprising U.S.-based engineering solutions provider Divicom, Romanian construction company Habau and local firm SA.I.E, was chosen to carry out works on a gas transmission pipeline from Piperevo to Pernik.

In April, the gas transmission operator launched a 15 million levs tender for reversing the Kardam compressor station at the Romanian border and expanding its control system's capacity as part of the gas corridor project.

(1 euro = 1.95583 levs)