April 30 (SeeNews) - ICGB, the company developing the Gas Interconnector Greece-Bulgaria project, said on Thursday that it has signed a 1.3 million euro ($1.4 million) deal with UK-based AIG UK, which will act as lead insurer of the project.
The contract was signed on April 13, ICGB said in a notice to the public procurement agency.
Two companies filed bids in the tender for the contract.
ICGB launched the tender in June 2019, but subsequently extended the deadline on several occasions.
The 220 million euro Gas Interconnector Greece-Bulgaria will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora.
The planned length of the pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased to up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station.
The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.
($ = 0.9219 euro)