Page 10 - GLNG Week 28 2021
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GLNG EUROPE GLNG
Linden eyes LNG
exports to Bulgaria
PROJECTS & US-BASED Linden Energy has struck a deal to
COMPANIES buy a stake in Bulgarian gas trader Overgas, fol-
lowing a recent divestment by Russia’s Gazprom.
Linden said its investment would help Bul-
garia diversify its energy mix, potentially via
the importing of US LNG. The company said it
intended to reserve 10% of the capacity of the
Interconnector Greece-Bulgaria (IGB), due
online next year. The 3bn cubic metre per year
pipeline will enable Bulgaria to access LNG
coming ashore at Greek regasification termi-
nals, as well as supplies traversing Greece along
the Trans-Adriatic Pipeline (TAP).
“I believe that Overgas is the perfect partner
to expand from a leader in the Bulgarian gas
market to a leader across the Balkan region,”
Linden president Stephen Payne commented.
“In addition to our investment, Linden will take
an active role in supporting Overgas’ efforts to
diversify the energy market in Bulgaria by add-
ing other sources of natural gas, one possibility
being US LNG.”
Overgas was formed by Gazprom and Bul-
garian businessman Sasho Dontchev back in
1995, and Russian gas was supplied to Bulgaria
through the venture until the end of 2015. The
Bulgarian authorities pushed at the time for had strong backing from the Trump administra-
Gazprom to enter into a direct gas supply con- tion, which was more openly supportive of the
tract with state company Bulgargaz and as of US LNG industry. In February last year former
2016, Bulgargaz remained the sole Bulgarian US Secretary of State Mike Pompeo announced
recipient of Russian gas. that Washington would provide an extra $1bn in
Following the halt of supplies, Overgas chal- financing for Three Seas.
lenged the ending of its contract with Gazprom US President Joe Biden has in contrast shied
in 2015, filing a lawsuit against the Russian away from actively promoting the interests of
company with the International Court of Arbi- US LNG exporters, amid growing antipathy
The completion of tration of the International Chamber of Com- towards the industry among voters. Neverthe-
merce, as well as a complaint to the European less, Washington helped facilitate a preliminary
its gas link with Commission about possible violations of anti- deal being reached in March this year between
Bulgaria will help trust legislation. ExxonMobil, US floating LNG (FLNG) opera-
Overgas maintains 2,100 km of Bulgaria’s tor Excelerate Energy and Albania’s government
establish Greece gas distribution network and supplies gas to on developing a regasification terminal in the
51 municipalities. It is the biggest independent Balkan country.
as a key transit natural gas supplier and trader on the Bulgarian Greek hub plans
market.
route and trading Linden said the deal aligned with the Three The completion of its gas link with Bulgaria will
hub for natural Seas Initiative, established in 2015. Involving help establish Greece as a key transit route and
Bulgaria and 11 other EU states, the initiative trading hub for natural gas. Since early 2020,
gas. was set up largely to counter countries’ eco- Greece has also been transiting gas from Azer-
nomic reliance on Russia. A key focus is support baijan en route to Italy via the Southern Gas Cor-
for gas infrastructure investments, with the cur- ridor (SGC).
rent roster of projects it supports including a gas Greece produces little gas of its own, relying
link being built between Poland and Lithuania, primarily on supplies from Russia and Azer-
planned LNG terminals in Croatia and Estonia, baijan as well as LNG deliveries arriving at
and the Ionic Adriatic Pipeline (IAP), slated to the Revithoussa regasification terminal near
run through the Balkans. Athens. In addition to IGB, the country’s hub
While dressed as a regional development role will be further bolstered by the possible
initiative, Three Seas is also implicitly aimed at construction of a new pipeline from Bulgaria
expanding the market for US gas in Europe. It to Serbia.
P10 www. NEWSBASE .com Week 28 16•July•2021
