Region, DESFA and MER signed an agreement on gas interconnection between two countries

, SEE Energy News

Greek natural gas transmission system operator DESFA and North Macedonian MER have signed a technical cooperation agreement for the development and construction of gas interconnection between the two countries.

The agreement was signed during the 5th Southeast Energy Forum in Thessaloniki. The technical agreement at company level follows the agreement signed by Greece and North Macedonia in July for the construction of the 123 kilometers gas pipeline, which will link Greek gas network at Nea Mesimvria with North Macedonia’s at Negotino. It will be able to transport 1.5 billion cubic meters per year with the possibility of doubling this capacity, with the investment estimated to reach 110 million euros.

In April, MER and power utility ESM have signed a Memoranda of Cooperation (MoC) on investments in the projects for the construction of liquefied natural gas (LNG) terminal in Alexandroupoli in northern Greece and nearby gas-fired power plant. The country will invest more than 380 million euros in 25 % stake in 800 MW gas-fired power plant and 10 % stake in LNG terminal.

MER signed a MoC on the acquisition of 10 % stake in LNG terminal with the Copelouzos Group, a shareholder in the project’s operator Gastrade, while ESM signed a MoC with Gastrade on the reservation of capacity at the terminal and another one with Damco Energy, also a part of the Copelouzos Group, on the acquisition of 25 % stake in gas-fired power plant.