Interconnection Turkey – Bulgaria (PCI 7.4.2.)
Project description and objectives:
Interconnector Turkey - Bulgaria (ITB) is a project for the development of interconnectivity of the gas networks of Bulgartransgaz EAD (Bulgaria) and Botas (Turkey) which would enable the diversification of natural gas sources, supplying counterparts and routes thus increasing the security of supply in the region and developing of competition.
ITB represents new onshore gas pipeline in the section between village of Lozenets and the Bulgarian-Turkish border in the region of the village of Strandja (in parallel to the existing transit gas pipeline) with length of about 76 km on Bulgarian territory, diameter of pipe between 700 mm and capacity about 3 bcm/y at operating pressure 64 bar. A compressor station Losenets–2 near the existing compressor station in the region of the village of Losenets is also envisaged to be built.
The project, as part of the priority Southern Gas Corridor is crucial in terms of security and diversification of the sources and routes of natural gas supply to/through Bulgaria and the region. ITB can secure access to all existing and future entry points and sources of Turkey–Azerbaijan and other natural gas and LNG spot supplies from the existing terminals in Turkey. Its implementation is directly related to achievement of the conditions required for creation of a competitive gas market, increase of systems' flexibility and market integration.
Status of the project:
On November 21, 2014, the European Commission published a list of activities selected toreceive financial support under the Connecting Europe Facility Mechanism - CEF-Energy. The Feasibility Study for the project Interconnection Turkey-Bulgaria is one of them. The recommended maximum grant amount is up to 190 000 Euro.
On February 10, 2015 in line with Art. 23, para 4 of the Public Procurement Act a prior information notice of a public procurement for services under category No 12 with subject “Feasibility study for construction of Interconnection Turkey-Bulgaria on Bulgarian territory” was published in the Public Procurement Register of the Public Procurement Agency.
On April 3, 2015 Bulgartransgaz EAD has signed a Grant Agreement No. INEA/CEF/ENER/M2014/0014 for the realization of a Feasibility study for the project Turkey – Bulgaria (ITB). On April 9, 2015 Bulgartransgaz EAD launched a public procurement award procedure in line with the PPA.
On August 3, 2015 following the successfully conducted procedure on the selection of a Contractor signed an Agreement with a subject “Feasibility study of the Interconnection Turkey-Bulgaria (ITB)”. The documentation on the procedure and a copy of the signed Agreement have been published on the company’s website at “Procurement”. More information on the Agreement is available here
The Feasibility study has been completed in the beginning of 2016.
The documentation that has been prepared and submitted as a result of the conducted feasibility study represents a comprehensive analysis on the feasibility of PCI 7.4.2. "Interconnection Turkey - Bulgaria" that includes: a recommendation of the pipeline route options, technical studies, preliminary design and cost estimates, evaluation and analysis of market needs, financial and economic feasibility, CBA, preliminary EIA, legal and regulatory feasibility, PCI development schedule, draft of Terms of reference for FEED and others.
On February 12, 2016, a meeting of the Expert Technical and Economic Committee (ETEC) of Bulgartransgaz EAD was held. The feasibility study adopted by the ETEC as compliant in scope and content according to all requirements of the Contacting authority. On the basis of decisions adopted by ETEC the most suitable option for route along with technological sites, technological layout and basic equipment for ITB were approved. Based on the decisions taken during the meeting a revised version of the preliminary terms of reference was submitted on February 26, 2016 by the Contractor and definitely approved on March 10, 2016.
In April 2016, the results of the conducted Feasibility study were communicated to the Turkish party.
In November 2016, a final implementation report on the financed Action Feasibility study for the project ITB certified by the Ministry of Energy and consisting of final technical report and final financial statement was submitted to the financing institution INEA.
With letter dated February 6, 2017 the financing institution INEA informed Bulgartransgaz EAD that the verification results show that all reported costs on the implementation of the Action are eligible and a balancing payment will be made. In February, 2017 Bulgartransgaz EAD confirmed receiving the balancing payment and thus Grant Agreement No INEA/CEF/ENER/M2014/0014 was finalized.
Information concerning the public and planning of public discussions:
- In January 2016 a Notice for investment intention for the construction of the Interconnection Turkey–Bulgaria (ITB), stage Feasibility study has been filed with the Ministry of Environment and Water. The Notice has been drafted in line with the requirements of article 4 of the Ordinance on the conditions and procedure of performing Environmental Impact Assessment;
- In February 2016, pursuant to Art.6 para.9 of the Ordinance on conditions and procedures for assessing the environmental impact (OCPAEI) the necessary information for the assessment of the need EIA to be performed with regards to the investment proposal for "Construction of Gas Interconnection Turkey - Bulgaria (ITB)" phase: Feasibility study, was submitted to the Ministry of environment and water (MEW). MEW issued Decision № 4/2016 stating that EIA has to be performed.
- Market tests;
- Discussions and consultations with the public concerned in accordance with the effective Bulgarian legal provisions in the field of design and environmental protection, such as the Spatial Development Act, Environmental Protection Act and other legislation relevant to the particular stage of the project.
Project Promoter (for the section on the territory of Bulgaria):
Bulgartransgaz EAD