April 19 (SeeNews) - The supplier of pipes for the Gas Interconnector Greece-Bulgaria (ICGB) project is expected to be selected in June, Bulgaria's energy ministry has said.
The shortlisted candidates will be announced by the end of April, the energy ministry said in a statement following a meeting of energy minister Temenuzhka Petkova with her Greek counterpart Giorgos Stathakis on Wednesday.
Last month, Bulgaria's energy ministry said the pipe supply tender has attracted 10 offers, from Jindaw SAW Ltd, JSC Zagorsk Pipe Plant, Welspun Corp. Ltd, Salzgitter Mannesmann International GmbH, Noksel Celik Boru Sanayii A.S., Umran Celik Boru Sanayii A.S., Erciyas Celik Boru Sanayi A.S., Toplivo-2, Korinth Pipeworks S.A., Pipe Industry S.A. and Public Joint Stock Company Chelyabinsk Pipe Plant.
Bulgaria and Greece are both aiming to begin the construction of the gas interconnector in June, so it can become operational in 2020, according to the statement.
The IGB pipeline 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 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 gas link is estimated to cost 220 million euro ($272.1 million). The project company has secured a sovereign guarantee of 110 million euro under the annual state budget act, which could ensure loan financing under preferable conditions.
The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.
($= 0.8084 euro)