ICGB, the company developing the Gas Interconnector Greece-Bulgaria project, said that it was granted a final licence by Greece’s energy regulator to start construction of the Greece-Bulgaria gas link on Greek territory.

The licence for the Independent Natural Gas System (INGS), which was notified on July 18, grants the right to ICGB to start construction of the interconnector, including the pipeline, auxiliary facilities and equipment, ICGB said.

The licence, issued for a period of 50 years, ensures the successful start of the pipeline construction on the territory of Greece, the company added, according to SeeNews.

The 220 million euro ($246.8) Gas Interconnector Greece-Bulgaria will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora.

The planned length of the pipeline is 182 km and the projected capacity will be up to 3 billion cm per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased to up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station.

The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.