Greece, North Macedonia sign deal for gas line

Greece and North Macedonia signed an agreement late last week for the construction of a gas pipeline between the two countries.

The new pipeline 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.

The project will contribute to "the improvement of security of supply and liquidity on the gas market", the North Macedonian economy ministry said.

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.

North Macedonia's state-owned company NER Skopje and utility ESM in March signed agreements with Gastrade, the developer and owner of Alexandroupolis, for co-operation in the terminal.

Studies have been carried out to allow the pipeline to also transport green hydrogen.

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.

Desfa told Argus in April that it expects construction on the new link to be completed by the end of 2023, although the operator added that a successful market test — planned for later this year — is a "necessary precondition" for the pipeline to be built.

By Eleni Charisi