Bloomberg News

Bulgaria-Greece Gas Link Ready by 2015, Ruggeri Says

May 11, 2012

Bulgaria and Greece plan to complete the construction of a 200-million euro ($258 million) pipeline connecting their natural gas grids by 2015, said Elio Ruggeri, chief executive officer of IGI Poseidon SA.

The 180-kilometer (112-mile) link will run from Komotini in Greece to Stara Zagora in Bulgaria and will be open to ship gas from the Caspian, the Mediterranean, or from a liquefied natural gas terminal in Turkey, Ruggeri said in an interview in the capital Sofia today. Its initial annual carrying capacity will be 3 billion to 5 billion cubic meters.

Bulgaria imports all of its gas from Russia and plans to diversify supplies. A 24 million-euro interconnecting pipeline with Romania’s grid will be completed in 2013. Similar pipelines with Turkey and Serbia are being developed, according to the Energy Ministry.

“We are now completing our engineering activities and obtaining permits both in Greece and Bulgaria with the aim of reaching an investment decision by the end of 2012 or beginning 2013,” Ruggeri said. “This will ensure that the pipeline will be in operation either by the end of 2014 or beginning of 2015.”

IGI Poseidon SA is a venture between Greece’s natural-gas supplier Depa and Edison SpA (EDN), which has an agreement with the Bulgarian Energy Holding EAD to develop the pipe.

The group has been in contact with the European Bank for Reconstruction and Development and other lenders “to structure a financing plan” Ruggeri said, adding that “prospects are optimistic.” A construction contractor will be selected in 2013, he said.

To contact the reporter on this story: Elizabeth Konstantinova in Sofia at ekonstantino@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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