Disappointing market test for Greece-Bulgaria (IGB) gas interconnector, but capacity expansion plans remain

Recent unfavorable results of a mandatory market test organized by ICGB, the Greek-Bulgarian consortium that operates IGB have not deterred the consortium from announcing plans to continue with a capacity increase of 3 to 5 billion cubic meters per year, according to media in Greece.

“We believe there is strong national and international interest and therefore the company remains fully committed to the objective,” a senior consortium official told SP Global.

In the non-committal phase of the market test, the players have expressed their interest in an annual capacity of 4 billion cubic meters for the coming years. However, this interest did not carry over into this year’s market test with compelling offers.

Project officials pointed out that the IGB is closely linked to the future Alexandroupolis LNG terminal in northeastern Greece, noting that the Greco-Bulgarian pipeline can only increase its capacity once the floating regasification unit (FSRU) is commercially operational. However, the commercial launch of the LNG terminal in Alexandroupolis was rescheduled for October, as a result of delays caused by technical problems, which would now be resolved.

The consortium also talked about potential US financial support for the Vertical Corridor, envisaged to connect the gas systems of Greece and Eastern European countries, following the recent failure of mandatory market tests to attract companies interested in transporting gas on here.