Greece: Gas interconnection agreement between Greece and Bulgaria signed

, SEE Energy News

At the ceremony at Sidirokastro, the Greek natural gas transmission system operator DESFA and its Bulgarian counterpart Bulgartransgaz have signed an interconnection agreement, which will establish a foundation for liberalized gas trading in Greece.

According to DESFA’s statement, the negotiations regarding the interconnection agreement have started back in 2013 and now are successfully completed with the approval of gas network operators of both countries and the European Commission as well. Managing Director of DESFA Konstantinos Xifaras said that in addition to the geopolitical importance of this agreement for both Greece and Bulgaria, it will also offer benefits to end consumers as a result of increased competition between gas suppliers in the market.

According to the agreement, a technical and commercial natural gas hub will be established at the Sidirokastro interconnection, enabling bilateral trade and supply security for the entire Southeastern Europe, in which Greece will play a prominent role. The agreement also enables other companies besides Public Gas Corporation DEPA and Russian Gazprom to use the capacity of Sidirokastro interconnection.

Competition in Greek gas supply market is expected to grow after 2018, when domestic consumers will be able to choose their suppliers, thus enjoying benefits similar to those currently present in the electricity supply market, which resulted in 15 % price drop, transmits