The permit, issued by Bulgaria’s Ministry of Regional Development and Public Works, covers the upgrade of the gas metering station near Stara Zagora. This milestone allows ICGB to move forward with the tender process for selecting an engineering, procurement and construction (EPC) contractor for the modernization works.
Once appointed, the EPC contractor will be responsible for installing additional infrastructure including filtering and preheating systems for natural gas, as well as building new pressure reduction and metering lines. These upgrades are designed to enable the Stara Zagora station to handle greater volumes of gas while maintaining operational reliability and interoperability with neighboring systems. The increase in capacity is essential for ensuring energy security and integration within the broader South East European region.
Alongside the technical preparations, ICGB is in ongoing talks with financial institutions regarding the financing model for the expansion. The company recently began a new two-year cycle of its market interest assessment process. This includes the submission of non-binding offers for capacity booking, which are expected by early September 2025. A binding phase is scheduled to follow in the summer of 2026. The construction of Lot 1 will begin once a final investment decision is approved by shareholders and financing arrangements are finalized.
Progress is also being made on Lot 2 of the expansion project, which covers the gas metering station located near Komotini, Greece. Preparatory documentation is advancing in parallel with Lot 1 to ensure that both construction sites move forward in alignment with the overall project strategy.
ICGB’s Executive Directors, Teodora Georgieva and George Satlas, welcomed the issuance of the construction permit in Bulgaria, calling it a key step in the company's efforts to implement the interconnector’s capacity expansion. They reiterated ICGB’s commitment to completing the project, emphasizing its long-term strategic value for regional energy stability and integration.
The expansion of the IGB pipeline is an essential component of the broader Vertical Gas Corridor initiative. It aims to enhance access to diversified energy sources, including LNG from Greek terminals and pipeline gas from Azerbaijan. Since its commissioning in October 2022, the IGB has played a vital role in supplying natural gas to countries in South East Europe. Expanding its capacity will further reinforce this role, potentially boosting deliveries not only to Bulgaria but also to neighboring markets and Ukraine. The IGB’s direct links to the Trans-Balkan and Trans-Adriatic pipelines position it as a crucial route for regional gas flows.
ICGB AD, the operator of the interconnector, is a joint venture established in Bulgaria in 2011. Its ownership is split evenly between Bulgarian Energy Holding (BEH EAD) and IGI Poseidon, a Greek-registered company jointly owned by DEPA International Projects and Italy’s Edison S.p.A. Under its governing structure, ICGB AD holds ownership of the pipeline, manages its capacity, and collects revenues from transmission services.
The IGB pipeline spans 182 kilometers, with a pipe diameter of 32 inches. It connects the Greek gas transmission network (operated by DESFA S.A.) and the Trans Adriatic Pipeline (TAP AG) near Komotini, to the Bulgarian network managed by Bulgartransgaz EAD near Stara Zagora. While the pipeline is currently operating at a design capacity of up to 3 bcm/year in the Greece-to-Bulgaria direction, its technical design allows for expansion to 5 bcm/year, subject to market interest and alignment with adjacent transmission systems.
(Novinite, August 08, 2025)