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MoU on implementation of Vertical Gas Corridor signed

21 July 2017 17:56 (UTC+04:00)
MoU on implementation of Vertical Gas Corridor signed

By Sara Israfilbayova

Four companies have signed a Memorandum on Understanding with the contractor for the Greece-Bulgarian Interconnector pipeline project.

DESFA, Bulgartransgaz, Transgaz and FGSZ and the ICGB AD consortium inked an MoU on the Vertical Gas Corridor Project.

DESFA reported that the full activation of the Vertical Gas Corridor will give the entire region an opportunity to significantly benefit from diversified natural gas import that Greece has and which will soon be further increased, via an upgrade of the LNG Terminal in Revythousa and the Caspian Sea gas that will be transported by the TAP pipeline which is under construction.

President and CEO of DESFA Nikas Sotirios noted that this document serves the energy strategy of Greece and one of DESFA's most important goals - to activate the Vertical Gas Corridor that will allow gas to be transported from Greece to Ukraine and back, which will help turn Greece into a regional gas Hub.

IGB, which is the key part of the Vertical Gas Corridor, is a gas pipeline that will allow Bulgaria to receive Azerbaijani gas, in particular, extracted from the Shah Deniz-2 gas condensate field. IGB will be connected to the Trans Adriatic Pipeline (TAP), through which gas from Shah Deniz will be supplied to European markets.

The interconnector with the length of 180 kilometers will have an initial capacity of 3 billion cubic meters of gas.

Four countries Bulgaria, Romania, Hungary, and Greece agreed on the construction of a gas interconnection grid.

The European Union will allocate some €560 million to finance 50 percent of the overhaul cost. The gas pipeline is planned to be built by 2019.

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