Wednesday, March 3, 2021
Home Oil & Gas Bulgartransgaz shareholding in the Alexandroupolis LNG terminal is being finalized

Bulgartransgaz shareholding in the Alexandroupolis LNG terminal is being finalized

The deal for the participation of the Bulgarian gas transmission operator Bulgartransgaz in the project for the construction of a liquefied gas terminal in Alexandroupolis is being finalised. The company was entered in the shareholders’ book of Greece’s utility company Gastrade as a full shareholder with all arising rights and obligations under the signed Agreement between shareholders. 

The Alexandroupolis Independent Natural Gas System (INGS) is a modern, cutting edge technology project for an offshore floating unit for the reception, storage and regasification of LNG. The planned capacity of the terminal for regasification and supply to the Greek gas transmission system amounts to 6.1 billion cubic metres (bcm) per year. The storage capacity is 170,000 cubic metres.

Last August, Bulgartransgaz signed an Agreement for the purchase and sale of 20 per cent of the share capital of Gastrade, becoming an equal shareholder in the LNG terminal project, a strategic milestone for the diversification and security of energy supplies in Bulgaria and the region.

Indeed, the project contributes to implementing the overall Balkan Gas Hub concept, which envisages to connect the natural gas markets of the countries in Central and East Europe by construction and development of the necessary gas transmission infrastructure. It is being fully implemented in pursuit of the policy and priorities for establishing a single interconnected pan-European energy market.

“In addition to diversification of sources, project implementation will enhance competition between the various natural gas suppliers in the region for the benefit of end-users”, highlighted the Executive Director of Bulgartransgaz Vladimir Malinov. According to him, the terminal will improve supplies’ security and flexibility.

The terminal is in synergy with other infrastructure projects in the region, such as the Interconnection Greece-Bulgaria (IGB) and the Expansion of the Chiren underground gas storage. These projects, along with Bulgartransgaz existing infrastructure, will improve the access of Bulgaria and the countries in the region to liquefied natural gas.

The main LNG suppliers to the terminal in Alexandroupolis are expected to be companies from the USA, Qatar among others. Natural gas can be supplied to consumers in Bulgaria, Northern Macedonia, Serbia, Turkey, Romania, Hungary, Moldova and Ukraine along IGB and other existing and future gas pipelines in Bulgaria and the region.

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