The European Commission approved and published the 5th List of Projects of Common Interest (PCIs) on 19 November 2021. Three projects of Bulgartransgaz EAD are included in the list, i.e.:
- PCI 6.20.2 Chiren UGS Expansion
- PCI 6.8.3 Gas Interconnection Bulgaria – Serbia (IBS)
- PCI 6.8.2 Rehabilitation, modernization and expansion of the Bulgarian transmission system;
The projects fall into Cluster No. 6.20. for storage capacity increase in Southeaster Europe and Cluster No. 6.8. for infrastructure development and enhancement enabling the development of the Balkan Gas Hub.
The inclusion of these three priority projects of Bulgartransgaz EAD in the 5th list proves the strategic role of the Bulgarian gas transmission system for ensuring security of supply and integration of the gas markets in the region. They will stimulate the diversification of sources between gas suppliers. The implementation of the projects will also contribute to reducing the greenhouse gas emissions by creating conditions for replacing the currently used coals with natural gas.
Chiren UGS expansion will increase the storage capacities from 550 mcm up to 1 bcm and those for withdrawal and injection from 3.5 mcm/day up to 8-10 mcm/day. This will stimulate the entry of new market participants and is of a considerable interest to LNG traders, who will be able to take advantage of additional flexibility in supply to their customers. Bulgartransgaz EAD applied for co-financing under the Connecting Europe Facility (CEF) for the expansion project. The project is in synergy with the LNG terminal near Alexandroupolis where the company participates with 20% of the share capital of the project company.
IBS's objective is to connect the gas transmission systems of Bulgartransgaz EAD and JP Srbijagas, thus providing significant new transmission capacity between the two networks as well as with other countries in the region through existing connections. The design capacity of the gas pipeline is 1.8 bcm/year with the possibility of a reverse flow. So far, CEF has co-financed the project with EUR 28.2 million.
The project for rehabilitation, modernization and expansion of the Bulgarian transmission system is envisaged in three phases. The project activities lead to ensuring safe and reliable natural gas transmission, improving the efficiency, reliability and flexibility of the transmission system and possibilities for transmission of additional natural gas quantities through the country, entering through existing and planned interconnection points. The second phase co-financed under CEF with EUR 27.6 million is expected to be completed in 2022. The first two phases of the project include the modernization of a total of 4 compressor stations by installation of 10 new low-emission gas turbine compressor units, construction of 20 km new gas pipeline and rehabilitation and replacement of 81 km existing gas pipelines. The third phase of the project envisages the construction of approximately 19 km new gas pipeline and a compressor station with 20 MW capacity. Its implementation will allow further increase of IBS capacity up to 2.4 bcm/year.
The inclusion of all three priority projects proposed by Bulgartransgaz EAD in the 5th List of PCIs confirms the adequacy and compliance of the company's investment programme with the EU objectives and will provide an opportunity to obtain financial aid for their completion.