<article><p class="lead">Greece and North Macedonia signed an agreement late last week for the construction of a gas pipeline between the two countries.</p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2198947">The new pipeline</a> will run from Nea Mesimvria in Greece — where the 10bn m³/yr Tran's-Adriatic pipeline (Tap) meets the Greek grid — to the border city of Gevgelija in North Macedonia, and then to the city of Negotino, the Greek energy ministry said. The link is to have a capacity of 1.5bn m³/yr to North Macedonia in the first stage, with the possibility of a future expansion to 3bn m³/yr. </p><p>The project will contribute to "the improvement of security of supply and liquidity on the gas market", the North Macedonian economy ministry said.</p><p>The planned link could bring Azeri gas to the country, or regasified LNG from Greece's 3.6mn t/yr Revithoussa terminal or its planned 4.2mn t/yr Alexandroupolis terminal. This could reduce its dependence on Russian gas delivered through Bulgaria, which is its main supply source.</p><p>North Macedonia's state-owned company NER Skopje and utility ESM in March signed agreements with Gastrade, the developer and owner of Alexandroupolis, <a href="https://direct.argusmedia.com/newsandanalysis/article/2201310">for co-operation in the terminal</a>.</p><p>Studies have been carried out to allow the pipeline to also transport green hydrogen. </p><p>The line is expected to cost €110mn, of which €51.4mn will be invested by Greek system operator Desfa on the Greek side of the project. </p><p>Desfa told <i>Argus</i> in April that it expects construction on the new link to be completed <a href="https://view.argusmedia.com/EU-EMD-2021-03-NAT-CEE-Natural-Gas_Greece-white-paper.html">by the end of 2023</a>, although the operator added that a successful market test — planned for later this year — is a "necessary precondition" for the pipeline to be built. </p><p class="bylines">By Eleni Charisi</p></article>