Bulgaria’s government said on Wednesday that it has issued approval to gas transmission system operator Bulgartransgaz to acquire 20% interest in Gastrade – the company developing a floating liquefied natural gas (LNG) terminal off Greece’s northern coastal city of Alexandroupolis.

The participation in the LNG terminal project is in line with Bulgaria’s long-term energy strategy for diversification of gas supply sources and routes, and will support the development of the country’s Balkan Gas Hub project, the government said in a statement, according to SeeNews.

State-owned Bulgartransgaz will acquire the shareholding interest by financing 20% of the cost of construction of the LNG terminal.

In addition, Bulgaria’s state-owned gas supplier Bulgargaz will participate in the LNG terminal’s market test by booking between 300 and 500 million cubic metres of natural gas per year for a period of 3 to 5 years. The gas will likely be delivered through the gas interconnector Greece-Bulgaria, which is currently under construction.