ICGB AD, Consortium Penspen-C&M Engineering Sign Contract for Greece-Bulgaria Gas Interconnector

Today, in Sofia, the contract for the Front End Engineering Design (FEED) and Environmental Impact Assessment (EIA) was signed between “ICGB AD” and the Consortium Penspen Ltd. – C&M Engineering S.A. The Consortium was awarded the contract as a conclusion of an international tender issued in January 2011, in which worldwide renowned engineering firms participated.

By signing this contract the project “Interconnector Greece – Bulgaria (IGB)” enters into a decisive phase. The provision of the FEED and EIA services will commence at the end of August and have a forecasted completion in the fourth quarter of 2012.

The interconnector IGB is a 170km long pipeline. The transit capacity is of 3  billion cubic meters per annum (bcma) which could be increased to 5 bcma, with reverse flow capability. The project  will connect Komotini (Greece) and Stara Zagora (Bulgaria).

The interconnector IGB is a project of strategic importance for Greece and Bulgaria, since it reinforces the security and provides diversification of supply in Southeastern Europe. The realization of IGB together with the development of the Turkey-Greece-Italy (ITGI)  gas supply corridor, will  enable the delivery of Caspian and Central Asian gas to Southern-East Europe from as early as 2014. The Interconnector will provide also the opportunity to supply liquefied natural gas from LNG terminals in Greece and Turkey.

The IGB project has already secured EU co-financing of €45.000.000 under the European Energy Program for Recovery.

The company “ICGB AD” was established on the 5^th of January 2011 in Sofia with the purpose of implementing and operating IGB pipeline. The shareholders of “ICGB AD” are the “Bulgarian Energy Holding EAD” (50%) and “IGI Poseidon SA” (50%). It is noted that the “Public Gas Corporation of Greece (DEPA)” and “Edison” are equal shareholders of “IGI Poseidon SA”.

The Consortium Penspen Ltd – C&M Engineering S.A  has worked together several times previously in the region. Penspen is an independent group of companies providing Studies, Engineering, Project Management, Operations and Maintenance and Integrity services to the Oil and Gas Industry for pipelines, transportation, storage and production facilities, both Onshore and Offshore. The Penspen Group has more than 1400 staff worldwide and has undertaken well in excess of 8000 projects in a wide range of technical and geographical areas. Penspen’s local partner C&M Engineering S.A is considered one of the most experienced consultancy & engineering firms in Greece, specialised in the energy sector, due to its portfolio of large, complex energy projects.

[mappress]
Source: Bulgarian Energy Holding , August 11, 2011;