IGI Poseidon submits technical and commercial proposal to transit gas from Shah Deniz field in Azerbaijan to Europe

IGI Poseidon, the 50/50 Joint Venture between Edison and Depa.

IGI Poseidon, the 50/50 Joint Venture between Edison and Greece’s Depa, submitted a technical and commercial proposal to transit gas from the Shah Deniz 2 field in Azerbaijan to Europe through ITGI transit corridor (Interconnector Turkey-Greece-Italy). IGI Poseidon is the company responsible for the development and construction of the new pipeline between Greece and Italy which will be part of the transit corridor ITGI (Interconnector Turkey-Greece-Italy).

With a transport capacity of up to 12 billion cubic meters a year, ITGI is the new European gas infrastructure which will enable to open the so called “Southern Gas Corridor” by connecting the Caspian and Middle East areas to Italy and Europe through Turkey and Greece. ITGI project also includes a pipeline connection between Greece and Bulgaria called IGB (Interconnector Greece-Bulgaria) under development.

ITGI and IGB projects represent the most advanced and competitive option to ensure physical transport of Azeri gas to where it is most needed in the EU, i.e. Southern East Europe (through Bulgaria and Greece) and Central and Northern European Markets (through Italy). Furthermore, their timely realization would pave the way to the development of a broader regional set of projects, connecting the additional gas resources which will be made available to the EU.

Details of ITGI corridor

ITGI project will use existing infrastructures in Turkey and Greece with a new pipeline to be built connecting Greece to Italy (IGI pipeline). IGI pipeline has a transport capacity of up to 12 billion cubic meters a year and comprises two sections:
·  IGI Onshore: 600 km onshore pipeline in the Greek territory (to be developed by Desfa, the Greek Transmission System Operator)
·  IGI Poseidon: 200 km offshore pipeline across the Ionian Sea (under development by IGI Poseidon SA, a joint venture between Edison and the Greek company Depa).

From Greece a spur line to Bulgaria is under development, namely IGB pipeline (Interconnector Greece-Bulgaria). With a transport capacity of 3 to 5 billion cubic meters per year, IGB will be built by IGI Poseidon and Bulgaria’s BEH.

Benefits for Italy and Europe

The completion of the ITGI project and of its spur to Bulgaria (IGB) will enable to:

· Diversify supply routes for Italy and Europe
· Enhance supply security in Southern East Europe (through Greece and Bulgaria) and in other European countries (through Italy).
· Implement solidarity mechanisms in eastern Europe in case of supply interruption thanks to the connection to the multiple gas import routes Italy has and to the wide storage capacity towards these markets.

The EU acknowledged ITGI as a Project of European Interest and included it among the Southern Gas Corridor Projects of the European Recovery Plan with a 100 million Euro financing. The IGB pipeline was included in the same plan with 45 million Euro financing.