In the presence of the Minister of Energy, Mr Rosen Hristov, and the Minister of Economy of the Republic of North Macedonia, Mr Kreshnik Bekteshi, the Bulgarian gas transmission operator Bulgartransgaz EAD and the gas transmission operator of the Republic of North Macedonia GA-MA АD signed an Interconnection Agreement for the Kyustendil/Zhidilovo point.
The Agreement is of key importance for the diversification and enhancement of the security of gas supply in North Macedonia as Kyustendil/Zhidilovo is the only entry point for the supply of natural gas to the country. The Republic of North Macedonia has no gas fields nor a natural gas storage facility and to guarantee the gas quantities required for the country relies completely on the transport of gas through Bulgaria.
"This document is the result of the long-term cooperation between us, and by signing it, our neighbours will have additional opportunities to diversify their sources and suppliers of natural gas," Bulgartransgaz Executive Director, Mr Vladimir Malinov, said during the ceremony. "The agreement is a real step towards the liberalisation of the gas market, which is of key importance for providing cheaper natural gas for our customers", emphasised as well the Executive Director of GA-MA AD, Mr Aleksandar Arsic.
The signing of the Agreement was possible following the considerate efforts by the teams of the two operators for the establishment of the clear and transparent rules and procedures involving the nomination and allocation of gas quantities. The document creates the opportunity for the entry of new participants on the gas market of North Macedonia.
The interconnection point Kyustendil/Zhidilovo is not a new one, however the Agreement provides for the increase of the technical transmission capacity to North Macedonia with 500 thousand cu m per day (from 2.5 to 3.0 mcm per day) or an increase of 182 mcm per year. The domestic yearly consumption amounts to about 300 mcm.
Thanks to the cooperation between Bulgartransgaz EAD and GA-MA АD, the Republic of North Macedonia is given the opportunity to diversify its gas supply. The prospect as well for an access to a liquid, transparent and non-discriminatory market on the trading platform of Balkan Gas Hub EAD is expected to elicit an interest amongst the market participants.
Thanks to the well-developed gas infrastructure of Bulgartransgaz and the interconnection with all neighbouring countries, the market participants (traders and customers) in North Macedonia are provided with access to significant gas quantities from alternative sources - the liquefied gas terminals in South East Europe as well as pipeline gas from Azerbaijan and other alternative suppliers.
In addition, North Macedonia will have the opportunity to benefit from natural gas storage services in Chiren underground gas storage facility, which is a prerequisite both for creating natural gas reserves, and achieving optimal gas prices with flexible portfolio management of the supply.
The signing of the Interconnection Agreement for Kyustendil/Zhidilovo will contribute to the market integration between the two countries and will deepen the cooperation in the energy sector.
