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Greece-Bulgaria Energy Deal Commences To Reduce Dependence On Russian Gas

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First with the News

Greece-Bulgaria Energy Deal Commences To Reduce Dependence On Russian Gas

October 1, 2022
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By Enyichukwu Enemanna

In an effort to decrease southeast Europe’s dependence on Russian gas and to boost energy security, Greece and Bulgaria have started operating a long-delayed gas pipeline in commercial quantity.

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The 182-kilometre pipeline will provide a relief to Bulgaria, which has been struggling to secure gas supplies at affordable prices since the end of April, when Russia’s Gazprom cut off deliveries over Sofia’s refusal to pay in roubles.

Russia has decreased its gas deliveries to Europe after the West imposed sanctions on Moscow over its invasion of Ukraine, leaving European Union countries scrambling to secure alternative supplies amid surging prices.

The European Commission president von der Leyen, welcomed the pipeline’s launch on Saturday, which she said was key to breaking away from Russian energy.

“This pipeline is a game changer. It’s a game changer for Bulgaria and for Europe’s energy security. And it means freedom. It means freedom from dependency on Russian gas,” Ursula von der Leyen said during an inauguration ceremony in Sofia attended by the leaders of Bulgaria, Greece, Azerbaijan, Romania, Serbia and North Macedonia.

“Both here in Bulgaria and across Europe people are feeling the consequences of Russia’s war. But thanks to projects like this, Europe will have enough gas for the winter,” she said.

The Interconnector Greece-Bulgaria (IGB) pipeline will transport 1 billion cubic metres (bcm) of Azeri gas to Bulgaria.

With an initial capacity of 3 bcm per year and plans to later raise this to 5 bcm, the pipeline could provide non-Russian gas to neighbouring Serbia, North Macedonia, Romania and further to Moldova and Ukraine.

It will carry gas from the northern Greek city of Komotini to Stara Zagora in Bulgaria. IGB is linked to another pipeline, part of Southern Gas Corridor that carries Azeri gas to Europe.

On Friday, gas operators in Bulgaria, Romania, Hungary and Slovakia proposed to transport increased Azeri shipments through their networks to central Europe.

The €240 million pipeline is controlled by a joint venture between Bulgarian state energy company BEH, Greek gas utility DEPA and Italy’s Edison.

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