Bulgargaz reserves a capacity of 500 million m3/year at the Greek LNG terminal in Alexandroupolis

SOFIA (Bulgaria), September 14 (SeeNews) – Public gas supplier Bulgargaz will request to reserve an additional storage capacity of 500 million cubic meters (mcm) of liquefied natural gas (LNG), or 5.3 million MWh per year, at the planned floating natural gas (LNG) terminal in Alexandroupolis, Greece, the Bulgarian interim government announced on Wednesday.

The request will be submitted to the operator of the Gastrade terminal for a period of 10 years from the date of commissioning of the installation, the government said in a press release.

The Alexandroupolis terminal, which has a total send-out capacity of 5.5 billion cubic meters (bcm) of natural gas, is expected to enter service by the end of 2023. It will be connected to the national transmission system of Greek natural gas (NNGΤS) with a 28 kilometer long pipeline, through which regasified LNG will be transported to the markets of Greece, Bulgaria and the wider region of South Eastern Europe (SEE), from potential suppliers such as the United States, Algeria and Qatar.

After receipt of the requested capacity or part of it, Bulgargaz plans to launch a call for tenders for the supply of LNG within the limit of the total reserved capacity of the terminal for the period 2024-2034, under conditions tariffs aligned with benchmark prices at liquid gas hubs around the world, says the government.

The future terminal in the Aegean Sea should also be connected to the Greece-Bulgaria gas interconnector, which is scheduled to come into service on October 1. This would facilitate LNG imports to Bulgaria from diversified sources.

In August, the caretaker government accepted just one of seven LNG carriers offered by US Cheniere Energy to the previous government, in light of an alleged lack of free offloading slots at the existing Revithoussa LNG terminal in Greece.

Bulgarian gas transmission system operator Bulgartransgaz is financing 20% ​​of the construction cost of the Alexandroupolis terminal in exchange for a 20% stake.

Bulgaria, which has traditionally depended on Russian gas imports to cover around 90% of its consumption, has struggled to diversify its sources since Gazprom cut off supplies in April due to Bulgaria’s refusal to meet demand for gas. Moscow to pay for deliveries in rubles.

Plans to reserve a capacity of 500 million cubic meters in Alexandroupolis were first announced in 2020.

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