BULGARTRANSGAZ EAD acquires 20% of Gastrade SA shares

Mihai Cristea 25/08/2020 | 16:12

The Greek company Gastrade SA announces the signing of the agreement for the acquisition of 20% of its share capital by the Bulgarian company BULGARTRANSGAZ EAD (BTG), operator of the National Natural Gas System of Bulgaria.

 

Gastrade is developing the LNG floating storage and regasification unit (FSRU) offshore Alexandroupolis​​, which will be a new, independent energy gateway for the markets of Southeastern and Central Europe.

The Station will be located 17.6 km southwest of the port of Alexandroupolis and will have an LNG storage capacity of 170,000 cubic meters and a natural gas supply capacity that will exceed 5.5 billion cubic meters per year. The floating unit will be connected to the National Natural Gas System of Greece via a 28 km long pipeline, through which the regasified LNG will be transmitted to the markets of Greece, Bulgaria and the wider region, from Romania, Serbia and North Macedonia to Hungary, Moldova and Ukraine.

The project supports and completes the Greece-Bulgaria interconnector (IGB) involving Bulgarian Energy Holding, the parent company of Bulgartransgaz, and DEPA, through which natural gas will be channeled from the LNG Terminal in Alexandroupolis to Bulgaria and from there to the other markets of Southeast Europe.

The participation in the project of Bulgartransgaz, the public company that manages and develops the natural gas network and infrastructure in the neighboring country, falls within Bulgaria’s updated energy strategy and its decision to gain direct access to LNG through the Alexandroupolis terminal.

At the same time, it is a proof of the strategic role of the project in Southeast Europe and will have a key role in the penetration of LNG in the region, as well as in enhancing energy liquidity in the its markets.

“We welcome Bulgartransgaz to the project. Today’s signing of the agreement is the conclusion of our long-standing discussions at all levels of the Bulgarian energy administration. The participation of Bulgartransgaz in the project is of particular importance as it demonstrates the regional profile of the project and its importance for the markets of Southeast Europe. It is also a significant international investment in Greece and we are proud to be part to it. We are well acquainted with our new partners and we are confident that we will enjoy an excellent cooperation in promoting energy development in our region.” Says Konstantinos Spyropoulos, Gastrade’s CEO.

“The investment that Bulgartransgaz made today in the LNG project is of strategic importance for the development of the natural gas market in Bulgaria and the region. This will guarantee liquidity of the gas market and competitive prices for the customers. The LNG terminal in Alexandroupis complements the realization of the concept of the Bulgarian government – Balkan Gas Hub.” Explains Vladimir Malinov, Bulgartransgaz’s CEO.

This is a European Project of Common Interest (PCI – EU Regulation 347/2013), a priority project of the European Union, which strengthens security of supply, diversifies sources and routes of energy supply, enhances competition and supports the establishment of a Natural Gas trading hub in the wider region of Southeastern Europe, bearing obvious benefits for all final consumers.

The agreement was signed today in Athens by the Founding Shareholder & Chairman of the Board of Directors of Gastrade, Mrs. Elmina Kopelouzou and the CEO of Bulgartransgaz, Mr. Vladimir Malinov in the presence of the Prime Ministers of the Hellenic Republic and the Republic of Bulgaria, Mr. Kyriakos Mitsotakis and Mr. Boyko Borissov.

The new Shareholder Agreement of the Company was also signed today by the existing shareholders Mrs. Elmina Kopelouzou, GasLog Cyprus Investments Ltd, DEPA Commercial SA, the Company and the new shareholder.

GasLog was represented by the CEO of the company, Mr. Paul Wogan and DEPA Commercial by the Chairman of the Board, Mr. Ioannis Papadopoulos and the CEO Mr. Konstantinos Xifaras.

The LNG Terminal in Alexandroupolis is expected to be operational in early 2023.

The agreement is subject to the approval of the competent authorities.

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