Mobility at the diplomatic and business level for its revival is in full swing oil pipeline Burgas – Alexandroupolis.

The project, conceived in 1993 by Nikos Grigoriadis (consultant of the Latsis group) to transport oil from the Caspian Sea to Bulgaria and from there through Burgas to the Greek port of Alexandroupolis to enter international markets by tankers bypassing the Bosphorus, arrived in 2007 one step before started implementation, only to be canceled three years later by a unilateral and fictitious recall Bulgaria for environmental reasons, it returns along the same route, but with a different destination and with a reverse flow of oil.

Not from Burgas to Alexandroupolis, but vice versa. in Greek port which develops in energy centeroil will come from sources outside of Russia and will go to Burgas through the pipeline, from where it will be sent to the markets Balkans And her Eastern Europe. This is a pipeline with a smaller capacity, namely 10 million tons of oil per year versus 35-50 million tons, which, according to the original plan, were supposed to be pumped from north to south. The pipeline will follow the route of the IGB gas pipeline up to a certain point.

Bulgaria, which by its withdrawal in 2011 from the interstate agreement with Greece and Russia, signed by it in 2007, led to the collapse of the project, at least in the foreground, seems to be taking a leading role in its revival and its work in countercurrent. The plan to revive the Burgas-Alexandroupolis oil pipeline was first made public on November 20 by Bulgarian Energy Minister Rosen Hristov at the IENE conference in Athens. In 2024, the exemption received from the EU expires. Bulgaria for oil supplies from Russia, recognizing the arguments of the Bulgarian side that its refinery Lukoil Burgas it was built solely to run on Russian oil, while Turkey has meanwhile quintupled its Bosphorus crossing fees, forcing the Bulgarian government to find an economically viable supply solution consistent with Europe’s policy of independence from Russia. The Burgas-Alexandroupolis oil pipeline, according to Rosen Christoph’s statements in the Bulgarian media, is the only solution to ensure the long-term operation of refineries with cheap oil.

On the Greek side, at the business level, an active role in the revival of the plan was taken by Copelouso Group. In fact, the head of the group, Dimitris Kopelouzos, on the sidelines of the opening of a new natural gas plant in Alexandroupolis, confirmed his interest in the project and referred to its main characteristics. In conversation with “K” among other things, he noted the maturity of the project, given that it will be based on the technical studies that were made in the previous phase of its development, where he even provided environmental studies. It will only be necessary to update the economic study based on new data on material prices and its limited capacity. This means that as soon as an investment decision is made, which requires coordination at the transnational level, the construction of the gas pipeline will “go” quickly.

The Burgas-Alexandroupolis oil pipeline is Sofia’s only solution for the Lukoil Burgas refinery to continue operating with cheap oil.

The project, in its new form and unlike the original plan, appears to have the full support of the US and the EU. as part of a strategy of complete dependence on Russian fossil fuels. Factors familiar with discussions in diplomatic forums believe that precisely because he supports this policy, he will be included in the PCI list, paving the way for funding from both the EBRD and the EIB. Same factors point to “K” the geopolitical dimension of the project, “as another component of the Natural Gas Vertical Corridor, which is also complemented by the transport of oil from south to north” and which singles out Greece as an entry gate as well as a transit hub.

This vertical axis will pass through Greece, Bulgaria, Romania, Hungary, Ukraine and Moldova, using existing and new natural gas infrastructure to supply Central and Eastern Europe with LNG that will enter Greece from various sources, at Revitus, at the Alexandroupoli LNG terminal, which is already under construction, but also the new FSRUs that are being promoted (Motor Oil in Agios Theodoros, a second Gastrade FSRU also in Alexandroupolis, the ELPE project in Thessaloniki and Mediterranean Gas in Volos).

The main “link” of this vertical axis is the IGB pipeline, which connects Greece with Bulgaria and transports gas from the TANAP-TAP system to the Bulgarian market with the prospect of also transporting gas from the new Alexandroupoli FSRU. It is also expected to strengthen the axis through the disposal of the decommissioned Trans-Balkan Gas Pipeline (TBP), which for 30 years transported Russian gas through Ukraine to South-Eastern Europe and is being prepared for operation in reverse mode. The capacity of the Trans-Balkan gas pipeline is 17 billion cubic meters. gas and 7.5-8 billion of them will be able to cover the gas that will be transported through the Greek system from Bulgaria to Kyiv and Budapest. The North Macedonian market will also be supplied with gas, which will enter Greece through TAP or through LNG terminals. During the first quarter of the year, DESFA is awaiting an investment decision on the construction of a pipeline that will connect Nea Mesimvria with the Negotino region in North Macedonia.

Irritation of Athens and Brussels over Bulgargaz-Botas deal

Bulgaria’s decision to turn to Turkey for natural gas supplies has caused concern and discomfort in circles at home, as well as in Brussels, in connection with the commitment to the 13-year long-term agreement.

On January 2, state-owned Bulgargaz signed an agreement with Turkish state gas company Botas that gives Bulgaria access to Turkish LNG terminals as well as a natural gas transmission network to supply 1.5 billion cubic meters. gas per year. Bulgaria’s total consumption is 3-3.5 billion m2. and in 2022, 2-2.5 billion were covered by LNG from the Revitussa station.

Bulgaria is also participating through Bulgargaz in the new terminal at Alexandroupolis and has committed to 1 billion cubic meters. gas, while it was negotiating with the Greek side and the shareholders of FSRU Alexandroupolis for its participation in the plan for a second FSRU in the same area with a purely export character.

That is, the gas that will be supplied to this second terminal will be sent through the MGB to Bulgaria, and from there to Romania and Ukraine.

This plan, according to agents with knowledge of the market and geopolitics, is weakened after an agreement with Turkey, according to which Bulgaria will cover more than 1/3 of its needs with volumes of 1 billion cubic meters. already imports gas from Azerbaijan. Some even talk about an “asymmetric” deal with Greece, but that’s only part of the angst it has caused.

The other concerns the role of the deal in geopolitical energy competition, with geopolitical insiders discussing Russia’s ambitions to make Turkey a supply hub for Europe by pumping cheap oil and natural gas into its market, reaching Europe bypassing Turkey’s sanctions. They say, for example, that the gas that will be supplied to Bulgargaz from Botas cannot be verified whether it will be gasified LNG or Russian gas.