Bulgaria Enters Greek LNG Project
Bulgarian gas transmission system operator Bulgartransgaz has closed the purchase of a 20% stake in Gastrade, which is developing an LNG terminal in Alexandroupolis in Greece.
The EU-backed project will supply at least 5.5bn m3/year of gas, to consumers across southeast Europe. It is closely tied with the 3bn m3/year Interconnector Greece-Bulgaria pipeline, due to start up later this year. Greece's parliament on January 26 ratified a deal with Bulgaria, outlining the pipeline's tax regime and how future profits from its operation are shared between the two countries.
The project comprises a floating storage and regasification unit, moored 17.6 km southwest of Alexandroupolis and connected to the national grid via a 28-km pipeline. Operations are due to start in 2023, although Gastrade is yet to take a final investment decision. Bringing Bulgartransgaz on board should help reach this goal.
Gastrade's main shareholder is Greek firm Copelouzos, which has a 40% position. Greek gas supplier Depa Commercial and Monaco-based LNG carrier owner GasLog have 20% each. In November Greek gas grid operator Desfa, two-thirds owned by an international consortium led by Italy's Snam, also agreed to take a 20% interest. Neighbouring North Macedonia has also asked for a role in the project's development which is expected to cost €380($448)mn.
(banner image courtesy of Gastrade)