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ICGB gets permit to start construction in Greece of gas link to Bulgaria

ICGB gets permit to start construction in Greece of gas link to Bulgaria Denys Prykhodov/

SOFIA (Bulgaria), July 22 (SeeNews) -  ICGB, the company developing the Gas Interconnector Greece-Bulgaria project, said that it was granted a final licence by Greece's energy regulator to start construction of the Greece-Bulgaria gas link on Greek territory.

The licence for Independent Natural Gas System (INGS), which was notified on July 18, grants the right to ICGB to start construction of the interconnector, including the pipeline, auxiliary facilities and equipment, ICGB said in a statement on Friday. 

The licence, issued for a period of 50 years, ensures the successful start of the pipeline construction on the territory of Greece, the company added.

Also on Friday, ICGB said it has further extended the deadline for submitting bids in a tender for selection of a lead insurer for the project's needs by one week to July 31. The tender, with an estimated value of 1.3 million euro ($1.46 million), envisages covering of construction all risks, delay in start up and third party liability.

The 220 million euro ($246.8) Gas Interconnector Greece-Bulgaria will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora.

The planned length of the pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased to up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station.

The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.

($  = 0.89145 euro)