Bulgartransgaz EAD Buys 20% of the Shares of LNG Terminal near Alexandroupolis

Bulgartransgaz EAD will acquire 20% of the capital of the project company Gaztrade SA, which builds the LNG terminal near Alexandroupolis. This is included in a decision of the Council of Ministers, adopted at its meeting on January 8, approving the shareholding of the Bulgarian gas transmission operator, BNT reported.

The participation of the Bulgarian side in the project for construction of a LNG terminal in Northern Greece is fully in line with the updated energy strategy of Bulgaria. This is a significant step towards realizing the overall concept of the Balkan Gas Hub, which is based on the promotion of a transparent, liquid and reliable natural gas market.

The project for the LNG terminal near Alexandroupolis, Greece, is being fully implemented in pursuit of the policy and priorities for building a single interconnected pan-European energy market. It will help improve security of supply and diversify natural gas sources in the region.

The synergy of this project with the construction of the Greece-Bulgaria interconnection (IGB) will increase the access of liquefied natural gas to Bulgaria and other countries in the region. Companies from the United States, Qatar, etc. are expected to be the main gas suppliers to the Alexandroupolis terminal. In this way, the project will contribute both to diversification of gas supply sources and routes and to promoting competition for the benefit of end customers. The project has been identified by the Central and South-East European Gas Interconnection High Level Group (CESEC) and the European Energy Union Strategy.

In today's decision, the Council of Ministers approved the investment costs of Bulgartransgaz EAD for the construction of the facility, corresponding to its 20% shareholding. Bulgargaz EAD will participate in the binding phase of the market test procedure to reserve capacity from the LNG terminal to Alexandroupolis, reserving up to 500 million cubic metres per year, but not less than 300 million cubic metres per year for a period of 3 to 5 years. To utilize the reserved capacity, Bulgargaz EAD will hold negotiations for the supply of liquefied natural gas through Greece-Bulgaria interconnector.

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