Greece-Bulgaria interconnector natural gas pipeline granted expansion permit

ICGB AD Bulgaria, the independent operator of the Greece-Bulgaria interconnector (IGB) natural gas pipeline, has obtained a construction permit for Lot 1 of its planned project to expand IGB’s capacity to 5 billion cu m/year (bcmy) from 3 bcmy. This permitting allows ICGB to begin the process of selecting an engineering, procurement, and construction (EPC) contractor for the expansion.

Once selected, the EPC contractor will be tasked with installing additional filtration and gas preheating equipment, as well as building pressure reduction and metering lines, at the line’s Stara Zagora gas metering station. The Lot 1 upgrade will allow the gas metering station to accommodate the expanded flowrate while maintaining safety and operational compliance.

ICGB’s management says it is actively engaged in discussions with financial institutions regarding funding for the expansion. The company also has launched an assessment of market interest in the increased capacity. Non-binding offers are expected by September 2025, with binding commitments planned for third-quarter 2026.

Once a sustainable financial plan is secured and ICGB’s shareholders take final investment decision on the expansion project, construction activities under Lot 1 can begin. Documentation for Lot 2—a gas metering station near the Greek city of Komotini—is moving forward to ensure that work for both sites can advance through contracting together.

Expanding IGB is a key part of developing the Vertical Gas Corridor, according to ICGB, enhancing access to diversified gas sources including LNG from Greek terminals and pipeline shipment from Azerbaijan. IGB began operations in fourth-quarter 2022. The company says that this upgrade will solidify IGB’s role in not just supplying the Bulgarian market but also other countries in the region including Ukraine via the pipeline’s connectivity to the underutilized 27-bcmy Trans-Balkan gas pipeline and 10-bcmy Trans-Adriatic pipeline (TAP).

bp PLC last year granted non-controlling interest in TAP to Apollo Global Management Inc. (OGJ Online, Sept. 16, 2024). TAP is the final 880-km leg of the Southern Gas Corridor, bringing gas from bp-operated Shah Deniz field in the Azerbaijan sector of the Caspian Sea to European markets.