popular articles

Greece-Bulgaria: Gas pipeline extension despite low demand

The gas pipeline between Greece and Bulgaria will be extended by 3 to 5 billion cubic meters per year, despite reduced demand, motivated by strategic and national issues.

Please share:

The interconnector gas pipeline between Greece and Bulgaria, operated by ICGB, is set to increase its capacity from 3 to 5 billion cubic meters per year.
This decision comes despite limited market interest in reserving this additional capacity.
In October 2022, the pipeline began transporting Azerbaijani gas and regasified LNG from terminals in Greece and Turkey to Bulgaria and beyond.
According to an ICGB spokesperson, the extension is considered crucial both nationally and internationally, even though the results of the capacity reservation process in July 2024 were disappointing.
Commitment to the project remains strong, despite the challenges.

Alexandroupolis LNG Terminal Challenge and Delay Factors

The low demand for this additional capacity is due in part to the delay in commercial operation of the Alexandroupolis LNG terminal.
This terminal, essential for maximizing synergy with the pipeline, was originally scheduled to start operations at the end of April 2024, but has been postponed several times, with a new target date of October 2024.
The Alexandroupolis LNG terminal, operated by Gastrade, is designed to have a capacity of 5.5 billion cubic meters per year.
Its operation is vital to reach the full capacity of the gas pipeline between Greece and Bulgaria.

Market environment and gas prices

Other reasons for low demand include the uncertain market environment and lower Russian gas prices from Turkey, compared with European levels.
In July, Russian gas deliveries via the TurkStream pipeline to Southeast Europe reached their second-highest monthly level, increasing competition for the Greece-Bulgaria pipeline.
LNG prices for delivery to the Eastern Mediterranean also remain high, creating a complex dynamic for gas imports into the region.

Vertical Gas Corridor: A Strategic Project

The expansion of the gas pipeline between Greece and Bulgaria is part of the wider Vertical Gas Corridor initiative, aimed at increasing gas transport capacity in South-East, Eastern and Central Europe.
The aim is to enable a greater flow of Azerbaijani gas and regasified LNG via terminals in Greece and Turkey, with a target capacity of 10 billion cubic meters per year.
Regional gas network operators also conducted market tests for additional capacity along this route in July 2024, although the results were limited.
Discussions will continue in September to determine the next steps.

Perspectives and Financing

Discussions to finance these projects, including with US funds, are ongoing.
USAID plays a key role in energy security, and dialogues with the European Commission are also underway to explore various funding options.
In sum, despite the current challenges, the expansion of the gas pipeline between Greece and Bulgaria is an essential strategic step for the region’s energy security, reinforced by regional and international cooperation initiatives.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
Morocco is implementing a liquefied natural gas (LNG) terminal project at Nador West Med to diversify its energy supply sources and reduce its dependence on coal.
Morocco is implementing a liquefied natural gas (LNG) terminal project at Nador West Med to diversify its energy supply sources and reduce its dependence on coal.
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
TotalEnergies expands its liquefied natural gas portfolio with a long-term supply deal in Texas and a sales contract to the Dominican Republic starting in 2027.
TotalEnergies expands its liquefied natural gas portfolio with a long-term supply deal in Texas and a sales contract to the Dominican Republic starting in 2027.
The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
Reconnaissance Energy Africa Ltd. continues preparations at Prospect I, located in licence PEL73 in Namibia, aiming for 365 million barrels of unrisked oil resources.
Reconnaissance Energy Africa Ltd. continues preparations at Prospect I, located in licence PEL73 in Namibia, aiming for 365 million barrels of unrisked oil resources.
Baghdad has signed a strategic agreement with GE Vernova to build natural gas power plants totalling 24,000 MW, as the country seeks to reduce its energy dependence on Iran.
Italian group Snam will acquire nearly a quarter of Open Grid Europe for €920mn, expanding its gas infrastructure presence in Germany, subject to regulatory approvals expected by the third quarter of 2025.
Italian group Snam will acquire nearly a quarter of Open Grid Europe for €920mn, expanding its gas infrastructure presence in Germany, subject to regulatory approvals expected by the third quarter of 2025.
Perenco will acquire Woodside’s oil and gas assets in Trinidad and Tobago, expanding its national output beyond 500 million standard cubic feet per day following expected closing by the third quarter of 2025.
Perenco will acquire Woodside’s oil and gas assets in Trinidad and Tobago, expanding its national output beyond 500 million standard cubic feet per day following expected closing by the third quarter of 2025.
Sasol confirms the launch in September 2025 of a key gas project to supply a major power station in Mozambique, following an unexplained delay from the originally scheduled March date.
Sasol confirms the launch in September 2025 of a key gas project to supply a major power station in Mozambique, following an unexplained delay from the originally scheduled March date.
Bulgaria will begin expanding its gas network in the coming weeks, a cornerstone of the "The Vertical" project aimed at strengthening regional energy security following the halt of Russian transit through Ukraine.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
The bp Trinidad and Tobago joint venture has launched production at the offshore Cypre field, marking bp’s second major start-up in 2025 and strengthening its shallow-water footprint in the region.
The bp Trinidad and Tobago joint venture has launched production at the offshore Cypre field, marking bp’s second major start-up in 2025 and strengthening its shallow-water footprint in the region.
Shell has finalised the acquisition of Pavilion Energy in Singapore, integrating a portfolio of 6.5 mtpa LNG contracts, regasification capacity, and bunkering activities.
Shell has finalised the acquisition of Pavilion Energy in Singapore, integrating a portfolio of 6.5 mtpa LNG contracts, regasification capacity, and bunkering activities.

Advertising